Government announcements on pay-as-you-go rules and greater IRD disclosure powers welcomed by experts.
As the Panama Papers leak puts a global focus on disclosure, changes in New Zealand unveiled by Prime Minister John Key are a further sign that the tide is going out for tax secrecy, says EY tax expert David Snell.
As well as announcing proposals yesterday for small and medium-sized businesses to pay as they go rather than estimating lump sum payments,
the Government is looking to provide Inland Revenue with new powers to share information about tax debts with credit rating agencies."Tax debt will be more transparent and creditors able to make better decision about trading with tax-indebted business," Snell said.
The new disclosure provisions will be used for just "the most serious cases of non-compliance", according to the Government issues paper.The information could include debts relating to child support, student loans and employer KiwiSaver payments as well as income tax, GST and...
The Prime Minister announced a business tax package today, which includes proposals to simplify business tax.
All businesses benefit from an environment which gives them confidence to invest and grow. Through the Business Growth Agenda, the Government is working to create a competitive and productive economic environment which supports both export and domestically focused businesses. One way Government can help businesses is by reducing their compliance costs, saving them time and providing more opportunities to run and grow their businesses.
Inland Revenue’s Business Transformation programme is part of the Government’s investment in a productive environment for businesses. A well-functioning, modern revenue system should make it easy for businesses to get things right and difficult to get wrong, and reduce compliance costs.
Research shows that tax compliance costs are relatively high for small businesses. It is important to consistently ask whether these costs are excessive. In partic...