The Finance and Expenditure Committee is seeking public submissions on the Taxation (Annual Rates for 2021-22, GST, and Remedial Matters) Bill (the bill) and Supplementary Order Paper 64 (the SOP). The committee invites you to submit on the bill or the SOP or both at the same time via Parliament’s website.

The bill is an omnibus taxation bill that would set the annual rates of income tax for the 2021-22 tax year. It also has a range of proposals aimed at improving and ensuring the smooth functioning of the tax system, including:

• aligning the GST invoicing rules more closely with current business practice
• modernising the GST rules in relation to cryptoassets
• setting penalties for the sale and acquisition of sales suppression software.

Inland Revenue has published a detailed commentary on the bill, which is available here.

The SOP seeks to amend the Income Tax Act 2007 and the Tax Administration Act 1994 to:

• limit the deductibility of interest on residential investment property
• introduce a shorter bright-line period of five years for owners of new build properties
• make technical changes to the bright-line rules associated with the recent extension of the
• brightline test to 10 years and the proposed introduction of the five-year bright-line test for new builds
• give employers another option for paying fringe benefit tax on benefits given to employees
• make remedial changes to the business continuity test for losses so the policy intent is clearer.

Inland Revenue will publish a detailed commentary on the SOP, which will be made available here in two weeks’ time.

Dr Duncan Webb, chairperson of the committee, said: "I'm really looking forward to being part of a select committee that will dive deep into these various tax policies". He added that he is particularly interested in the proposals related to “cryptocurrency and how tax law has to keep up with new technologies”.

Tell the Finance and Expenditure Committee what you think

Make a submission on the bill by midnight on 9 November 2021.

Home Page | Parliament | Previous Story | Next Story

Copyright (c) Scoop Media