Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Relaxation of tax penalties

Date 17 October 2006

Relaxation of tax penalties – better late than never

Brahma Sharma, KPMG Tax Partner, today welcomed the release of the Government’s Discussion Document proposing changes to the penalties rules. One of the most significant changes is the decision that shortfall penalties will not be imposed when a taxpayer voluntarily discloses a tax shortfall to Inland Revenue.

Mr Sharma said that currently there is a 75% reduction for a voluntary disclosure. However, even with that reduction, there is little incentive for taxpayers to disclose errors, especially as there is also a reduction of 75% for a temporary shortfall of tax. The proposals mean that a taxpayer who discovers a genuine error will be able to disclose this to the Revenue without fear of being lumbered with a potentially significant penalty.

Mr Sharma said that the harsh effects of imposing penalties where taxpayers voluntarily disclose errors, in particular the fact that it discourages taxpayers from coming forward, had been pointed out to Government and officials repeatedly throughout the last 10 years of the current penalties regime “but at least there is now recognition of the harsh effects of the penalties regime and an attempt to rectify the problem.”

Other proposals in the Discussion Document include introducing restrictions on the ability to be recognised as a tax agent and changing the scope of the reasonable care and unacceptable interpretation penalties, as well as the introduction of a late payment penalty for GST.

The Discussion Document and its proposals has been signalled over the last few months, and in Mr Sharma’s view it is provides an opportunity for significant reform in an area that causes taxpayers and advisors considerable angst and in some cases hardship.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>

ALSO:

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: