Finance Minister Steven Joyce and Revenue Minister Judith Collins have released three consultation papers proposing new measures to strengthen New Zealand’s rules for taxing large multinationals.

“Our broad-based low rate tax system continues to perform very well for New Zealand overall,” Mr Joyce says. “However it’s important that it keeps evolving to ensure that all companies operating in New Zealand pay their fair share of tax.”

Businesses in the upper South Island and Greater Wellington areas hit by last year’s earthquake and aftershocks will be able to replace assets lost in the earthquake without immediately incurring a tax bill, Revenue Minister Judith Collins said today.

A Supplementary Order Paper to the Taxation (Annual rates for 2016-17, Closely Held Companies, and Remedial Matters) Bill released today by Ms Collins provides roll-over relief for depreciation recovery.

A Bill that tightens the foreign trust disclosure rules, simplifies tax processes and reduces or eliminates use-of-money interest for most business taxpayers passed its final stage in Parliament today.

“The new legislation tightens the disclosure rules for foreign trusts as recommended by the Shewan Inquiry,” says Revenue Minister Judith Collins.

“It also includes measures to implement the G20/OECD standard for the Automatic Exchange of Information, to help detect and prevent tax evasion globally” she says.

Revenue Minister Judith Collins today welcomed tax measures announced by Inland Revenue to help farmers affected by the Northland drought.

Inland Revenue will allow farmers to make late income equalisation deposits from the 2016 income tax year and to apply for early refunds.  This allows farmers to average their taxable income over several years more easily.

Ms Collins says that this would mean that farmers will be able to better plan their financial response to the drought conditions.

A new information sharing agreement between Inland Revenue and the Australian Tax Office has led to the contact details of almost 57,000 student loan borrowers being located across the Tasman, two thirds of whom are in default.

The agreement came into force in October and the details of around 10,000 New Zealanders were found in the first data match. The process has since been refined and a total of 56,897 people have now been located.

A change made to tax rules will provide businesses with faster access to GST refunds from February next year, says Revenue Minister Michael Woodhouse.

The Tax Administration (Direct Credit of GST Refunds) Order 2016 will make it compulsory for Inland Revenue to provide GST refunds by direct credit to a taxpayer’s identified account, resulting in much faster GST refunds.

Revenue Minister Michael Woodhouse today released proposals to simplify and modernise the Tax Administration Act (TAA), as part of the Government’s major transformation of the revenue system.

“The Government is committed to ensuring our tax administration is fit for purpose and meets the needs of modern New Zealand,” Mr Woodhouse says.

Revenue Minister Michael Woodhouse today welcomed the release of the OECD’s new multilateral instrument – the latest step in the global fight against base erosion and profit shifting (BEPS).

“Many BEPS techniques rely on abuse of tax treaties, and the OECD/G20 BEPS Project has recommended a number of changes to further strengthen tax treaties multilaterally,” Mr Woodhouse says.

Revenue Minister Michael Woodhouse today announced tax measures to help those affected by the Kaikoura earthquakes.

“This is a difficult time for many in the Kaikoura region and those affected by the earthquakes should be looking after themselves and their families first and foremost, rather than worrying about not meeting their tax obligations,” Mr Woodhouse says.

“Following an Order in Council this morning, Inland Revenue will waive use of money interest when a person is prevented from paying on time as a result of the recent earthquakes.

Eligibility for housing assistance and student allowances could be established more accurately under information sharing proposals released for public consultation today by Social Development Minister Anne Tolley and Revenue Minister Michael Woodhouse.

Information sharing already exists between IRD and MSD, but the Government is proposing to group the various current information sharing agreements into one.

The proposals also extend the use of information to enable MSD to:

Revenue Minister Michael Woodhouse and Small Business Minister Craig Foss today welcomed a survey showing small businesses are continuing to spend less time on tax compliance.

“Inland Revenue’s emphasis on providing customer-centric services that enable businesses to spend less time on compliance and more on growth is paying dividends,” Mr Woodhouse says.

Changes to tax laws will clarify that payments to foster carers for the care of children and young people cannot be treated as income and are not subject to income tax, say Social Development Minister Anne Tolley and Revenue Minister Michael Woodhouse.

Foster carers receive a care allowance from the government to help meet the needs of a child or young person such as board, personal items, pocket money, and additional reasonable costs.

An information exchange agreement with the Australian Tax Office (ATO) has carried out its first match, locating 10,400 student loan borrowers living across the Tasman.

Inland Revenue last week sent an initial list of 104,000 names of New Zealand borrowers who are living overseas to the ATO. Those names matched with the contact details of 10,400 people living in Australia.

Tomorrow we celebrate 30 years of having a GST system that is world leading and simple to apply, says Revenue Minister Michael Woodhouse

“For 30 years now, the basic concepts of GST have remained unchanged since its introduction, and have rightly seen New Zealand’s GST system held up around the world as a model for other nations,” Mr Woodhouse says.

“When our goods and services tax was introduced, it was marked by three revolutionary concepts:

A strategy used by some large multinationals to shift profits overseas and minimise their New Zealand tax is the focus of international tax proposals released for consultation today, says Revenue Minister Michael Woodhouse.

“A discussion document which proposes that New Zealand adopt the OECD recommendations on hybrid mismatch arrangements was today released for consultation,” says Mr Woodhouse.

“Our international tax rules are sound, but the Government considers that New Zealand’s rules on hybrids can be stronger.

Cabinet will consider a recommendation to allow Inland Revenue to waive interest on late payments of taxation for businesses affected by the Havelock North gastroenteritis outbreak, announced Revenue Minister Michael Woodhouse and Small Business Minister Craig Foss.

“Inland Revenue already has the ability to waive penalties for late payments, but due to the impact of the outbreak on businesses, Cabinet will consider enabling interest to be waived for late PAYE and provisional tax payments, due later this month,” Mr Woodhouse says.

A tax Bill to simplify tax processes, reduce compliance costs for smaller businesses, and tighten foreign trust disclosure rules was introduced in Parliament today, says Revenue Minister Michael Woodhouse.

“Business tax changes proposed in the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill deliver on the Government’s Budget 2016 SME-friendly tax package announcement and will reduce compliance costs and make tax simpler for small businesses,” Mr Woodhouse says.

The Government is acting on all recommendations from the Shewan Inquiry into foreign trust disclosure rules, Finance Minister Bill English and Revenue Minister Michael Woodhouse announced today.

The Inquiry made a number of recommendations which propose improvements to registration and disclosure of information, anti-money laundering rules and increased information sharing between government agencies.

“The Government has always been open to making improvements to New Zealand’s already strong tax settings if that was warranted,” Mr English says.

A discussion document released today could simplify taxpayers’ end-of-year processes while improving accuracy in the system, says Revenue Minister Michael Woodhouse.

“The discussion document, Investment income information, is the sixth in a series of public consultation documents and seeks to improve the administration of tax on income earned from investments,” Mr Woodhouse says.

The Government today released tax expert John Shewan’s independent Inquiry into Foreign Trust Disclosure Rules, and the steps it is taking to strengthen tax rules as part of its work with the OECD to clamp down on base erosion and profit shifting (BEPS).

Mr Shewan’s inquiry noted that foreign trusts are legitimate vehicles and that New Zealand’s tax treatment of foreign trusts is appropriate. However, it also recommends disclosure arrangements should be strengthened, including by: