Winery Operators Set To See Eased Tax Complaince
June 3, 2011 New Zealand Taxation
Winery operators are set to cheer a new move by the government, aimed at easing tax compliance rules for more than 350 wineries around the country.
On June 2nd the Economic Development Minister David Carter and Customs Minister Maurice Williamson announced a set of upcoming changes aimed at easing compliance requirements for the payment of excise taxes by New Zealand wineries.
From July 1st 2011, the threshold for the payment of excise taxes will be increased tenfold, meaning that a greater number of wineries will qualify as small producers as will not have to make payments as frequently. Under current rules, wineries with tax liabilities below NZD 10 000 are exempt from payment of excise duties on a monthly basis. Under the new rules, all wineries with liabilities below NZD 100 000 will now be able to pay on a monthly basis. Producers with liabilities between NZD 50 000 and NZD 100 000 will be eligible to make payments twice a year, and producers with liabilities below NZD 50 000 will pay only once a year.
The Ministers stressed that the changes will not effect the overall tax liabilities of the wine producers, but will only affect the frequency with which payments have to be made. David Carter explained that the move will help align the tax payments with the revenue flows of the winery. Maurice Williamson added, “these changes will help many smaller wineries cut their administration costs and balance cash flows and in a number of cases will enable wineries to stay in business.”
Photo by Gerald Claessens