Search

New Zealand is on the right track on the issue of taxing large multinationals and is committed to working with the OECD and co-ordinating closely with Australia, Revenue Minister Peter Dunne said today in releasing an officials’ report on the issue.

“It is a problem facing many countries, but no one country can solve it alone. It is a global issue and it will have a global solution, and New Zealand is constructively working on being part of that solution,” Mr Dunne said.

The Government will move to simplify the rules relating to financial arrangements that are agreements for the sale and purchase of property or services, Revenue Minister Peter Dunne announced today.

Mr Dunne said the changes reflect concerns expressed by a number of business taxpayers and their representatives over the past few years.

“The proposed changes will have a beneficial impact on business taxpayers who sell or buy property or services. They will be particularly welcomed by businesses who export and import capital equipment,” he said.

Changes to the tax treatment of employer-provided car parks, lease inducement payments and lease surrender payments, and including more non-cash benefits in income calculations for social assistance entitlements are key proposals being added to a tax bill before Parliament, Revenue Minister Peter Dunne said today.

Mr Dunne said the changes were in a Supplementary Order Paper (SOP) to the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters Bill released today.

New Zealand and Japan have signed a new double tax agreement to replace the existing 1963 treaty, Revenue Minister Peter Dunne announced today.

Tax systems around the world are adjusting to corporate giants with huge internet footprints, but very little physical presence, Revenue Minister Peter said today in addressing issues around the tax treatment of large multinational companies.

“The reality is that tax regimes internationally have generally been developed for an industrial age, and have struggled to keep pace with new business models and technologies not contained by location or national borders,” Mr Dunne said.

Labour Revenue spokesman David Clark is making a habit of going off half-cocked, with the latest example of his comments on the tender process for updating Inland Revenue’s computer system, Revenue Minister Peter Dunne said today.

“Yet again it is a case of ‘Ready! Fire! Aim!’ from Dr Clark,” Mr Dunne said.

“He needs to gather his facts and then see if they align to his very obvious political intentions before shooting from the lip.”

Revenue Minister Peter Dunne today launched two new tax scholarships named after Robin Oliver, a leading light in New Zealand tax policy in recent decades.

Mr Dunne said the scholarships will benefit New Zealand and its economy by supporting continued high quality tax policy.

The Tax Policy Scholarship Award and the Tax Policy Lecture Visit will jointly be known as the Robin Oliver Tax Policy Scholarships, and administered by the Tax Policy Charitable Trust.

I am delighted to have been invited to address you on a sector that plays an increasingly significant role in our society and which is of particular importance to me.

 The success of the not for profit sector is something that I personally am deeply interested in, so when

I began to think about my remarks today I focused on two questions.

First, why exactly should the Government, through the tax system provide support for the not-for-profit sector? 

Revenue Minister Peter Dunne today welcomed an Inland Revenue tax policy issues paper regarding the tax treatment of employee allowances.

“Essentially, the proposed changes are to make the rules easier to apply,” Mr Dunne said.

The paper, Reviewing the tax treatment of employee allowances and other expenditure payments, suggests a number of changes to the tax treatment of certain payments to cover expenses such as meals, accommodation, clothing and cellphones. 

Labour’s Revenue spokesman David Clark has scored an own goal with his attack on Inland Revenue staff turnover rates, mixing up call centre rates with those for the overall organisation, Revenue Minister Peter Dunne said today.

Dr Clark claimed that Inland Revenue had staff turnover rates of between 24 and 34 percent in the main centres, with the highest in the department’s Wellington headquarters.

Revenue Minister Peter Dunne today signed a protocol to amend the existing double tax agreement with Malaysia, which will now better equip both nations to exchange tax information to combat tax evasion.

"Double tax agreements help New Zealand-based businesses compete abroad and help make New Zealand a more attractive place to invest in by reducing tax impediments to cross-border income-earning,” Mr Dunne said.

Mr Dunne said updating the DTA with Malaysia is the latest in a series of initiatives New Zealand has undertaken to stamp out tax evasion.

KiwiSaver membership hit two million, with almost one in three children and two-thirds of young adults signed-up by the end of the 2011-12 year, Revenue Minister Peter Dunne said today.

"Overall, membership grew by about 12 percent in this 12-month period," Mr Dunne said in releasing the fifth KiwiSaver evaluation annual report.

"The report shows that almost 29 per cent of children and nearly 67 per cent of 18 to 24 year olds were enrolled in KiwiSaver by the end of the 2011-12 year

Revenue Minister Peter Dunne has welcomed the Social Services Committee report to Parliament on the Child Support Amendment Bill, saying the Committee’s recommendation that the bill be passed, was “a step closer towards a fairer, more efficient scheme for the parents and children involved”.

Evading paying tax has just become significantly more difficult, Revenue Minister Peter Dunne said today in announcing that New Zealand has signed the multilateral Convention on Mutual Administrative Assistance in Tax Matters.

Mr Dunne said that signing the Convention was another important step for New Zealand in the fight against tax evasion.

The Government is calling for public feedback on proposed changes to royalties and the taxation of minerals.

Two papers – Reviewing the Royalties Regime for Minerals and Taxation of Specified Mineral Mining – have now been released for public consultation. The royalties paper sets out proposals related to Government revenue from minerals, not oil and gas. The tax paper also excludes oil and gas from its proposals, as well as coal.

"Minerals are important to New Zealand’s economy," Mr Heatley said.

New Zealand and Papua New Guinea have signed a double tax agreement, Foreign Affairs Minister Murray McCully and Revenue Minister Peter Dunne announced today.

Mr Dunne said that the new double tax agreement signed by Mr McCully and PNG’s Foreign Minister Rimbink Pato in the PNG capital, Port Moresby, last night will help reduce tax impediments for doing business between the two countries.

“Papua New Guinea is of increasing importance for New Zealand businesses. The scope to expand trade and economic ties is huge,” Mr McCully said. 

Good morning.

I am delighted to be here with you again, particularly for your twentieth annual conference.

Over the last twenty years some of the country’s top tax experts have come together at this conference to focus on the big issues of the day.

And there is always something new to occupy us in the world of tax.

Let us not forget that the big tax story twenty years ago was that Budget night 1992 introduced the contentious entertainment tax.

It was an event many of us remember well – and probably still bear the battle scars from!

New Zealand will look to negotiate a FATCA tax information agreement with the United States, Revenue Minister Peter Dunne announced today.

The Foreign Account Tax Compliance Act (FATCA) was enacted by the United States in 2010, and requires overseas financial institutions – for instance, New Zealand banks, life insurers or managed funds – to enter into agreements with the US's Internal Revenue Service (IRS) and US Treasury to provide details about the affairs of their United States clients.

Low-income working families who are eligible for the minimum family tax credit will receive a small increase from 1 April next year, Revenue Minister Peter Dunne announced today.

“The tax credit currently provides recipients an after-tax income of $22,568 a year. This will increase to $22,724 a year from 1 April 2013,” Mr Dunne said.

The minimum family tax credit provides a guaranteed minimum family income to families who are in work and helps support them in moving off a benefit and into paid employment.

Revenue Minister Peter Dunne has congratulated Inland Revenue for making it easier for customers to file GST returns online.

“We know a lot of businesses look after their own GST returns, and October is a peak period for small businesses, so it is great timing to launch the smarter service,” Mr Dunne said.
Customers no longer need a document lodgement number (DLN) when they file online and their details will be pre-populated into their online return. All they need to do is fill in their financial details. The smarter online service also:

Revenue Minister Peter Dunne today announced that New Zealand will be signing a multilateral convention on tax assistance later this month, as he dismissed claims that New Zealand is a tax haven for foreign trusts. 

“The key identifying characteristics of tax havens are secrecy and lack of transparency. Those are simply not factors here in New Zealand.

Revenue Minister Peter Dunne announced today that Cabinet had made its final decisions on the suggestions outlined in the April 2012 issues paper Recognising salary trade-offs as income.     

“We have listened to public submissions and the proposed new rules are now narrower than originally suggested, focusing predominantly on employer-provided car parks,” Mr Dunne said.

Specifically, Cabinet has agreed on the following changes: 

Claims by Labour’s David Clark about Inland Revenue’s computer system are “simply mischievous, ill-informed and downright ignorant”, Revenue Minister Peter Dunne said today.

“He is playing typical Opposition politics and adding one and one and quite deliberately getting five,” Mr Dunne said.

Dr Clark had claimed a recent privacy breach and temporary peak period telephone response issues were because of Inland Revenue’s computer system, which he said the Government was showing no urgency in upgrading.

Lease inducement payments by commercial landlords to tenants will be made taxable, but with some important changes as a result of the recent consultation process, Revenue Minister Peter Dunne announced today.

Changes to the initial proposal to tax lease inducement payments include: