Tax admin, compliance suggestions sought

  • Peter Dunne
Revenue

Revenue Minister Peter Dunne today called for public submissions on certain remedial matters focused on simplifying aspects of tax administration and compliance.

Key areas include:

• Whether the determination of the value of a “benefit” in the Income Tax Act 2007 is a gross concept and whether the Act is consistent in its approach to the issue.

• Whether the Tax Administration Act 1994 should allow the Commissioner of Inland Revenue to make a binding ruling in relation to a taxpayer’s circumstances for an income year or period of time, despite the taxpayer having already made a self-assessment of a taxation obligation for that year or period.

• If the Commissioner writes off uncollectible amounts of tax and makes consequential adjustments to a loss balance from a prior year or years under provisions of the Tax Administration Act 1994, whether the Commissioner should take into account provisions of sub-part CG of the Income Tax Act 2007 in determining the amount of adjustment to the loss balance.

Mr Dunne said submissions commenting on any relevant technical and compliance aspects of these issues as well as proposed solutions would be welcomed.

He said that an efficient and readily understood tax system plays an important part in building the economy and boosting productivity.

Submissions must be made by Friday 28 October, either electronically at www.rewriteadvisory.govt.nz or by post c/- Rewrite Advisory Panel Secretariat, PO Box 2198, Wellington.

Mr Dunne said the panel’s work had been of great value in clarifying aspects of the tax system.

“The Rewrite Advisory Panel’s work is extremely valuable in providing quick responses to particular remedial questions that do not involve policy change and are not on the tax policy work programme.

“It is all part of delivering a more efficient and fairer tax system,” he said.