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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.

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.

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.

Japan and New Zealand today exchanged diplomatic notes, for a new double tax agreement which will make it much easier to do business between the two countries, Revenue Minister Todd McClay announced today.

“The New Zealand Government is extremely supportive of opportunities to increase trade with Japan and this agreement will further assist by reducing tax impediments to cross-border trade and investment. It will also assist tax authorities of the two countries to detect and prevent tax avoidance and evasion,” says Mr McClay said.

Internal Affairs Minister Chris Tremain and Inland Revenue Minister Todd McClay have announced a new information sharing agreement which will improve compliance with child support and student loan repayment obligations.

Under the agreement, Internal Affairs will provide Inland Revenue with contact details from adult passport renewals or applications. 

Revenue Minister Todd McClay outlined the benefits of a transformed Inland Revenue today, while announcing the first stage of a programme that will make interacting with Inland Revenue easier and less costly for New Zealanders.

In a speech to business leaders in Wellington, Minister McClay said the Government was committed to making it easier for both people and business to interact with Inland Revenue, which was the aim of a major, long-term transformation programme.

Revenue Minister Todd McClay and Internal Affairs Minister Chris Tremain say parents registering the birth of their baby can also now apply for their child’s IRD number.

A joint service provided by the Department of Internal Affairs and Inland Revenue means parents can get an IRD number for their new baby by simply ticking a box, and supplying a small amount of extra information, on the Birth Registration form.

A Bill introduced today by Revenue Minister Todd McClay proposes higher repayment obligations for overseas-based borrowers to encourage them to pay off their loans sooner, and tougher measures to deal with borrowers who persistently refuse to make repayments.

Mr McClay said changes proposed in the Student Loan Scheme Amendment Bill (No. 3) were a continuation of the Government’s focus on encouraging personal responsibility for loan repayments. 

Revenue Minister Todd McClay has welcomed the signing today of a new double tax agreement between New Zealand and Viet Nam.  The signing took place following official talks in Viet Nam between Vietnamese State President Truong Tan Sang and New Zealand’s Governor-General, the Rt Hon Sir Jerry Mateparae, who is currently visiting South East Asia to promote New Zealand interests in the region.

Minister of Revenue, Todd McClay has today released Inland Revenue’s supplementary Briefing to the Incoming Minister (known as the BIM) that outlines the key issues facing the tax system.

Mr McClay said that the tax system was in good shape. The last few years have been particularly difficult for many New Zealanders as the government has dealt with headwinds from the GFC and the significant impact of the Canterbury earthquakes.