New Zealand Taxation & Financial News » tax change

Report on Tax Changes in Parliament

Editor — Wed, 01 Jul 2009 10:51:52 +0000

Parliament has been presented with a report by the Finance and Expenditure in regards to upcoming tax changes.

The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill which was introduced in the July of 2008. The Finance and Expenditure Committee has replied to the proposed changes in four volumes, addressing the various aspects of the bill. Some changes are recommended, including the delay of some aspects.

The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill sought to radically address numerous aspects of the New Zealand taxation system. Some changes include alterations to international taxation, taxation of life insurance, petroleum mining, allowing for charitable giving from payrolls and foreign investment funds, amongst other things.

The report, in all four volumes, can be viewed at the Inland Revenue Department’s website, here.

Dunne Wants to Delay Tax Change

Editor — Wed, 25 Mar 2009 05:18:15 +0000

Peter Dunne is advising that the government delay the series of tax reforms that it is set on implementing on the 1st of April.

Revenue Minister Peter Dunne has voiced his concern in regards to the Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill, introduced last July. According to him, there are numerous business owners and their tax advisors that are not necessarily ready or fully comprehend the changes that are set to occur on the 1st of April.

Peter Dunne has proposed the following changes. Reform of international taxation will proceed as planned except for those with balance dates before the 30th of June. Proposed changes to life insurance and PIE schemes are to be deferred to a date set by consultation with industry representatives. The concept of businesses being able to donate directly to charities will be delayed from the 1st of April to a later set enactment date.

An exact list of other smaller changes can be found at the Inland Revenue Department website, here.

IRD Advices About Provisional Change

Editor — Tue, 10 Mar 2009 02:42:21 +0000

The Inland Revenue Department (IRD) has issued a statement reminding people of their option of changing the way they pay Provisional Tax, and the impending deadline of the option.

The IRD is allowing people who opt in before the end of March to use the new “ratio option” to calculate their provisional tax liability. According to the IRD this option would be most beneficial to businesses with heavily fluctuating cash flows.

The new system will be calculated based on the most recent GST return filed by the business. Subsequently, the Provisional Tax will be calculated and payment will be made six times a year, as opposed to the current three. As such, any business which has fluctuations from one month to the next might see benefit from the new system, so as to pay a more appropriate amount for their level of monthly revenue.