Proposed business tax changes welcomed

Changes to business tax rules recommended by the Tax Working Group have been welcomed by BusinessNZ.

Proposed new loss continuity and feasibility spending rules announced today would help optimise business investment, BusinessNZ Chief Executive Kirk Hope said.

A member of the Tax Working Group, Mr Hope said submissions to the Group by many businesses and organisations had given a clear message on the need for tax changes to support business investment.

"Current thresholds in loss continuity rules make it difficult for many firms to carry losses forward, and the rules around deductibility for feasibility expenditure are currently a barrier to increased innovation.

"The Government’s decision to support change in these areas will be welcomed by business."

ENDS

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