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Ditch Provisional Tax

Ditch Provisional Tax

"Labour are correct to pick up on the ideas in the IRD green paper the government released in March, and call for archaic provisional tax regulations on small businesses to be ditched," says ACT Leader David Seymour.

"Small business people have long complained that paying tax based on the previous year's earnings, rather than this year's can create a cashflow nightmare.

"Provisional tax is out of date and unnecessary in the age of digital financial transfers. The IRD needs to recognise its impact on the cashflows of small businesses.

"Smoothing the tax year and adapting to new technological realities would be easy wins for small business.

ends

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