New Tax Bill Passed
The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill has passed through the final stages of New Zealand Parliament.
The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill was first introduced to parliament in March, 2008. It was intended to be a far reaching Bill, encompassing and amending many areas.
Peter Dunne, Revenue Minister, stated in regards to the bill “The reforms are aimed variously at reducing tax costs for businesses, bringing tax law up to date with today’s commercial environment, protecting our revenue base, ensuring the law works as effectively as possible, or supporting a culture of charitable giving in New Zealand.”
Changes include amendments that ensure that insurance providers are taxed on profits in comparable ways to other businesses. Kiwisaver laws have also been altered to allow $15,000 to be paid from a person’s account in the event of their death. Volunteer and community groups will be subject to new tax treatments, aimed at easing their daily business requirements. Charitable donations will also come into new systems of law, with employees of scheme enrolled employers receiving tax benefits from their donations on pay day.