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The second round of Budget 2010 tax changes will help make businesses more competitive and further rebalance the economy towards savings and exports, Finance Minister Bill English and Revenue Minister Peter Dunne say.

"Cutting the company tax rate will make New Zealand more competitive and increase incentives for businesses to reinvest earnings back into jobs and growth," Mr English says.

Minister of Revenue Peter Dunne has welcomed the announcement yesterday by the Australian Government that Australian taxpayers can now make tax deductible donations directly to the Christchurch Earthquake Appeal.

“This is a very generous gesture from our friends in Australia. By making donations towards the Appeal tax deductible for Australian donors it recognises and encourages in a very practical way the significant contribution that people living in Australia are making towards our earthquake recovery efforts in Christchurch,” Mr Dunne said.

Good morning and thank you for inviting me to be here with you today.

I was pleased to see that this is now your fourteenth annual payroll conference.

Congratulations on sustaining your conference through the very significant changes to payroll processes that we have witnessed in recent times.

Many of those changes relate to the Inland Revenue Department.

Although Inland Revenue had already put in place a number of urgent measures in response to last month’s Christchurch earthquake, the Government is looking at further measures in response to issues raised by the public, Revenue Minister Peter Dunne said today.

“I am very pleased with Inland Revenue’s response to the position people found themselves in after the earthquake.

Good morning and thank you for inviting me here today. 

When I addressed your conference last year, the Victoria University Tax Working Group had just reported back and their recommendations were being considered by the Government, as part of last year’s Budget process. 

Clearly much has happened since then.

New Zealanders will be able to donate their accumulated tax credits from donations they have made in the current tax year to the Christchurch Earthquake Appeal, Revenue Minister Peter Dunne announced today.

Last year tax credits claimed for donations were worth about $154 million.

“That is by any measure a substantial amount of money in tax credits, and if some or all of that were gifted to the Appeal, it would be a very significant level of gifting,” Mr Dunne said in an address to the Tax Agents Institute of New Zealand annual conference in Wellington.154

Good afternoon and thank you for inviting me to address you here today.

First, I would like to extend my thoughts and support to the people of Christchurch including TINZ members from the region and their families.

My sincere condolences and sympathies to all who have lost loved ones, friends or colleagues.

As a Cantabrian myself with a large part of my extended family in Christchurch, my heart is very much with all the people of that redoubtable province at this time.

Revenue Minister Peter Dunne has confirmed that New Zealand donors to the Christchurch Earthquake Appeal announced by Prime Minister John Key on Sunday will be able to claim a tax credit or deduction on their donations.

He also said the fund would be treated as a tax-exempt entity.

“Many people are being very generous, from large businesses donating big sums through to individuals giving what they can and very generously,” Mr Dunne said.

Inland Revenue will take account of the impact of this week’s huge Christchurch earthquake when dealing with the tax matters of individuals and businesses affected, Revenue Minister Peter Dunne said today.

“Right now it is all about the human tragedy, saving lives and getting communities back on their feet and functional again.

“Tax will be the last thing on people’s minds if they have been affected by the earthquake, and they should not worry if they cannot meet a particular tax filing date,” Mr Dunne said.

Revenue Minister Peter Dunne today reminded New Zealanders that all Christchurch earthquake cash donations over $5 by individuals through approved donee organisations can gain a tax credit, and will be tax deductible when made by companies.

“This is worth being aware of at a time when New Zealanders are giving generously to the people of Christchurch in their hour of need,” Mr Dunne said.

A full list of approved donee organisations can be found at www.ird.govt.nz/donee-organisations/

A Grey Power claim that the Government has ended compensation built into their superannuation for last year’s rise in GST is wrong as the compensation is there to stay, Revenue Minister Peter Dunne said today.

“The compensation given to superannuitants when the GST rise came in on 1 October last year was both immediate and permanent. It is now built into their payments and will remain so through further adjustments as they occur,” Mr Dunne said.

Revenue Minister Peter Dunne expects to release a summary of the main themes of public submissions on the Child Support review next month, he announced today.

The consultation period on the Supporting Children discussion document ran through September and October last year and drew nearly 2300 submissions.

“As expected with an issue that affects so many New Zealanders, there was a huge range of strongly held views, which is excellent in the context of the comprehensive review that we are undertaking,” Mr Dunne said.

The payroll giving scheme, where workers can donate direct from their pay, has been a $1.4 million windfall for New Zealand charities in its first year, Revenue Minister Peter Dunne announced today.

“In the first 12 months, we’ve seen support for payroll giving grow and it is only going to build further as more people learn more about it,” Mr Dunne said.

He said the spirit of giving was really demonstrated in December.

New Zealanders earning over $100,000 a year would need to pay a top tax rate of 47 cents in the dollar just to fund Labour’s promised $10 a week tax break, Revenue Minister Peter Dunne said today.

“That’s up from the current top tax rate of 33 cents, which the Government brought down from 38 cents in last year’s Budget,” Mr Dunne said.

“These figures are calculated off the $1.3 billion shortfall that Labour would need to find if Phil Goff is to make the first $5000 of income tax-free.

Labour leader Phil Goff’s pledge to make the first $5000 of income tax-free was rejected out of hand by Michael Cullen in the last government, Revenue Minister Peter Dunne said today.

“So when did a bad idea become a good idea?” Mr Dunne asked.

“I know what Labour’s thinking on this was as I was Revenue Minister at the time, and part of those discussions and decisions.

“Michael Cullen is on the record as specifically discounting such a threshold as of little benefit to low income earners and far too costly.

Revenue Minister Peter Dunne has welcomed the enactment of tax reforms introduced in the Taxation (GST and Remedial Matters) Bill, saying they were a significant step towards increasing fairness and consistency across the tax system.

The new rules in the legislation enacted this week close off a loophole in the GST rules where some GST-registered purchasers have claimed a GST refund without the corresponding payment having been made because the supplier in the transaction has been deliberately wound up to avoid making the GST payment.

Revenue Minister Peter Dunne today welcomed recommendations by the Cultural Philanthropy Taskforce endorsing recent changes to the tax rules to encourage New Zealanders to give more generously to philanthropic causes.

“New Zealanders are generous in giving money and time to support the work of charitable and philanthropic causes in our communities.

Revenue Minister Peter Dunne says initiatives starting next year will cut business compliance costs and make it easier for New Zealanders to manage tax.

“Businesses can see tax as a complicated process involving a lot of paperwork,” said Mr Dunne.

Changes announced today will clarify Inland Revenue has the power to recall a student loan in cases of serious non-compliance.

The changes are contained in a Supplementary Order Paper to the Student Loan Scheme Bill and were released today by Revenue Minister, Peter Dunne.

Good afternoon and thank you for inviting me to be here with you today.

When your Chairman, Stephen Eagles invited me to speak today, he reminded me of our first meeting in Manchester back in 1994.

At the time Stephen was contemplating a move to New Zealand.

He tells me that I promoted New Zealand to him as a country with an economy with firm foundations based on long-sighted policies.

I am pleased to have been so influential.

Sixteen years ago, Stephen and I sat and discussed the economic prospects of New Zealand.

Revenue Minister Peter Dunne today announced that following discussions with the New Zealand Institute of Chartered Accountants (NZICA) legislation regarding the tax treatment of resident withholding tax on trusts’ interest income is to be amended.

Mr Dunne explained that the issue related to Inland Revenue’s analysis that resident withholding tax (RWT) deducted from gross interest paid to a trust forms part of the gross interest paid to a beneficiary and had to be distributed with the interest.

Proposed new tax rules, released today, will increase the integrity of the tax system and help ensure everyone pays their fair share, Finance Minister Bill English and Revenue Minister Peter Dunne say.

Mr Dunne today released a Supplementary Order Paper (SOP) that will introduce several Budget 2010 tax measures to the Taxation (GST and Remedial Matters) Bill, which is nearing its final stages in Parliament. MPs are expected to debate the amendments on Thursday.

The proposed changes, which have been finalised after public consultation over the past few months, will:

New Zealand and Hong Kong have concluded a double tax agreement, Finance Minister Bill English and Revenue Minister Peter Dunne announced today.

Mr English and Hong Kong’s Financial Secretary John Tsang signed the agreement in Auckland.

"This agreement is an important step forward in strengthening our economic relationship with Hong Kong,” Mr English said.

Thank you very much for inviting me to be here with you today.

I am especially delighted to be part of tonight’s proceedings honouring leadership in an organisation whose objectives align so closely with my own and those of the Government.

Tonight, we pay tribute to a small group of your members who have demonstrated excellence in leadership, but I want to talk about the leadership that NZICA itself demonstrates in the accounting community in New Zealand and even beyond our borders.