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Revenue Minister Todd McClay today welcomed the passing of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill which will contribute to a fairer and more accessible tax system.

“The Government is committed to fostering growth and delivering better public services. This new legislation continues the work of further improving the fairness of the tax system and providing a better service to taxpayers,” Mr McClay says.

Revenue Minister Todd McClay has introduced changes to the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Bill to provide greater choice to individuals who decide to transfer their foreign superannuation before 1 April 2014.

“This amendment is about providing foreign superannuation holders with extra flexibility when it comes to complying with their tax obligations,” Mr McClay says.

The Student Loan Scheme Amendment Bill (No 3), which changes repayment obligations for overseas-based borrowers and tougher measures for persistent non-payers, passed its second reading in Parliament today. 

“This legislation continues the Government’s focus on providing fairness to the taxpayer through proper oversight of the student loan scheme,” Revenue Minister Todd McClay says.

A new double tax agreement between New Zealand and Papua New Guinea is now in force, Revenue Minister Todd McClay announced today.

“Trade in the Pacific and particularly with Papua New Guinea is taking on greater importance for New Zealand. This agreement will strengthen international cross-border trade and investment partnerships for the benefit of businesses, investors and taxpayers in both countries,” Mr McClay says.

Revenue Minister Todd McClay has confirmed that senior IRD officials are to participate in OECD discussions on base erosion and profit shifting (BEPS) in Paris this week.

“In his opening statement to Parliament on Tuesday the Prime Minister stated an intention to maintain a focus on combatting base erosion and profit shifting by multinationals,” Mr McClay says.

Revenue Minister Todd McClay has said that more time will be given to prepare for the introduction of reforms to the child support scheme.

Revenue Minister Todd McClay announced today that New Zealand Company Assurity Consulting Limited has been awarded a contract worth up to $30 million as part of the Business Transformation process. Assurity will be the preferred testing provider resulting from an open tender by Inland Revenue on the Government electronic Tender Service website.

Revenue Minister Todd McClay today released the sixth KiwiSaver evaluation annual report which showed continued steady growth for the retirement scheme in the 2012-13 year.

“The number of people enrolled in KiwiSaver had reached 2.15 million members by the end of June this year, and it is especially pleasing to see that there was continued growth in membership across the population groups. Over half of the eligible population are now members and this included 72 per cent of 18 to 25 year olds”, says Mr McClay.

The Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill has passed its First Reading. This omnibus tax bill proposes changes to bring greater clarity to the tax rules and fairness to businesses and other taxpayers.

Revenue Minister Todd McClay said the measures in this bill support the Government’s goal of establishing a well-targeted, responsive and efficient tax system, which is essential to New Zealand’s economic growth and prosperity.

“Labour Revenue spokesman David Clark has issued possibly the worst press release in 50 years,” says Revenue Minister Todd McClay.

“David Clark’s overcooked and scattergun media statement today about supposed IT failings at Inland Revenue speaks volumes about his superficial understanding of Revenue issues”.

“He claims ‘the publication of inland Revenue’s annual performance measures is already one week overdue’.

“Wrong.

“It’s becoming ever harder to avoid or evade tax” Revenue Minister Todd McClay said today announcing that New Zealand has now taken the final procedural step for ratification of the multilateral Convention on Mutual Administrative Assistance in Tax Matters.

Measures to clarify the tax treatment of certain employee allowances and reimbursements included in a tax bill introduced to Parliament today will be welcome news for employers and employees involved in Canterbury earthquake recovery work, say Canterbury Earthquake Recovery Minister Gerry Brownlee and Revenue Minister Todd McClay.

An omnibus tax bill introduced today by Revenue Minister Todd McClay proposes changes to bring greater clarity to the tax rules and make them easier for businesses and other taxpayers to understand and comply with.

Mr McClay said the principal measures proposed in the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill are the result of earlier consultation with businesses and other taxpayers, and are aimed at fine-tuning the tax system so that it remains fit for purpose.

Thank you for inviting me here today to talk about base erosion and profit shifting (or “BEPS” as it’s known as).

BEPS is a matter of growing importance and an issue of real concern to both the OECD and the G20. But there is nothing new in ensuring that international tax rules are robust – it’s been an important part of our international tax reforms in recent years. For that I am immensely grateful and greatly comforted as it means that our tax rules are in a strong position to face this issue.

The Government will introduce legislation to Parliament to give community housing providers and donors certainty that assisting low-income families into home ownership will be exempt from income tax.

“The Government is committed to supporting as many kiwi families as possible to achieve the goal of owning their own home. This tax change is about supporting organisations like Habitat for Humanity who help low-income families buy a house through rent-to-buy or similar home ownership products,” Housing Minister Dr Nick Smith says.

Minister of Revenue Todd McClay announced the release today of an Inland Revenue tax policy officials’ paper which seeks public feedback on the minimum financial reporting requirements that should apply for most companies. 

The Government is to include changes to the tax treatment of employee allowances, reimbursements and employer-provided accommodation in a tax bill to be introduced to Parliament later this month that will bring clarity for many taxpayers.

Revenue Minister Todd McClay said today that a decision by Cabinet to include changes to the Income Tax Act as part of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill will also minimise compliance and administration costs for many businesses and organisations.

Ladies and gentlemen

This is my first NZICA tax conference since becoming Minister about 5 months ago and I am grateful for the invitation to be here with you today.

I would like to use my address to set-out the Government’s tax policy work programme for the next 18 months and in particular highlight a number of issues that the government believes are important to New Zealand, New Zealand business and to our tax system.

Today marks the 5th anniversary of the John Key Government being elected having received support from more than 1,000,000 New Zealanders.

The Government’s tax policy work programme, which outlines the Government’s focus for tax reform and development until the end of 2014, was announced today by Revenue Minister Todd McClay.

Speaking at the New Zealand Institute of Chartered Accountants’ tax conference in Auckland, Mr McClay said tax policy development work ahead would be focussed on supporting the Government’s economic priorities for growth and productivity, and delivering better public services.

Science and Innovation Minister Steven Joyce and Revenue Minister Todd McClay today released a Government consultation document, Black hole R&D expenditure, which seeks feedback on proposals to resolve problems around the tax deductibility of certain types of business-related research and development expenditure.

In welcoming today’s launch of Inland Revenue’s Compliance Focus, Revenue Minister Todd McClay said that it is important for a strong economy that businesses, large and small, continue to receive the help they need to get it right.

An Inland Revenue report released today by Revenue Minister Todd McClay strongly endorses measures outlined in an OECD action plan dealing with the taxation of multinational companies in relation to base erosion and profit shifting (BEPS) concerns among OECD member countries. 

Revenue Minister Todd McClay today announced that from 1 April next year, low-income working families who are eligible for the minimum family tax credit will receive an increase.

“The minimum family tax credit currently ensures that families who work the minimum number of hours and who are not receiving a benefit will have an after-tax income of $22,724 a year. This will rise to $22,776 a year from 1 April 2014,” says Mr McClay.

Revenue Minister Todd McClay has welcomed the start of the formal Expression of Interest process of Inland Revenue’s Transformation programme.

“This is the next step in transforming Inland Revenue into a more user-friendly agency that will allow New Zealanders to simply and efficiently manage their interactions through online services,” says Mr McClay.