More Time For Business Recommendations Become LawRevenue
The first cluster of tax simplification recommendations from the ‘More Time For Business’ discussion document have become law with the enactment of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act earlier this week.
“Tackling business compliance costs, especially for small business owners, is a major focus for this government and this Act is another step in the right direction,” said Associate Minister of Revenue and Minister for Small Business Paul Swain.
“One measure that will particularly help small business owners is the removal of the requirement to value amounts of trading stock of less than $5,000. This will save small business owners that don’t hold much stock, a fish and chip shop owner or part-time tradesperson for example, time and worry about getting it exactly right when they don’t actually need to.”
A second cluster of ‘More Time For Business’ recommendations is in the Taxation (Annual Rates, Maori Organisations, Taxpayer Compliance and Miscellaneous Provisions) Bill, currently before Parliament.
As well as the the trading stock rule-change the other measures enacted this week are:
·The threshold below which individuals who are provisional taxpayers are removed from the use-of-money tax rules has been raised from $30,000 to $35,000 of residual income tax.
·Banks and other financial institutions will have more flexibility in how they communicate resident withholding tax information to interest earners.
·The requirement to file a tax return or request an income statement on behalf of a taxpayer who dies, but who would not have had to file a return or request a statement had they lived, has been removed.
·Companies will no longer have to file multiple imputation returns to obtain income tax refunds.
·Changes to the family tax credit will allow better targeting and make the application process easier.
·The determination of family assistance entitlements has been simplified by removing the need to make a number of complex adjustments when calculating them.
·Taxpayers with income totalling $200 or less from which tax has not been withheld will no longer have to file a tax return.
“Simplifying the tax system is a complex task and there is no one-size-fits-all solution that reduces tax-related compliance costs for everyone,” said Mr Swain. The most effective approach is to tackle the problem by making incremental changes targeted at different problems. The measures in this bill reflect that approach to tax simplification.”
A more detailed commentary on the changes is available on the web site of the Inland Revenue’s Policy Advice Division at:
Andrew Janes – Press Sec for Paul Swain – 04 4719889/021 270 9106 or email@example.com
For other releases by Paul Swain: www.beehive.govt.nz
For business information from the government: http://www.nzbusiness.govt.nz