Inland Revenue - Tax policy Tax Policy

News and information about the Government's tax policy work programme, including:
- proposed changes to the laws that Inland Revenue is responsible for
- updates on the progress of bills through Parliament
- policy announcements

Tax policy news

17 May 2018

Finance Minister Grant Robertson’s 2018 Budget contains the following tax-related announcements:

Budget allocations to the IRD

- $23.5 million over the next four years to improve Inland Revenue’s ability to ensure outstanding company tax returns are filed.

- $3 million for Inland Revenue to identify legislative opportunities over the next four years to improve tax compliance in specific industries through the use of third party reporting and withholding taxes.

- $4.3 million over four years to implement and administer the recently announced research and development tax credit.

See the Minister of Revenue’s media statement.

Changes to bloodstock tax rules

The Government is proposing that the costs of a stand-out yearling acquired by an investor with an intention of breeding for profit would be deductible as if it were acquired by an existing breeding business. The changes will be introduced into Parliament later this year. See the Minister for Racing’s media statement.

Tax policy work programme

The Government also released its new revenue strategy. The revenue strategy sets out the Government’s objectives for the tax system and tax policy, in the context of its economic and fiscal strategies. As part of this release, the updated tax policy work programme is also being released.

15 May 2018

The Taxation (Neutralising Base Erosion and Profit Shifting) Bill, introduced on 6 December 2017, was reported back to Parliament today. For more information see the bill as reported back and the officials’ report on submissions received on the bill.

15 May 2018

An officials’ issues paper, GST on assets sold by non-profit bodies, released today sets out proposals to clarify the GST rules for the sale of assets by charities and other non-profit bodies.

The main proposal is to ensure that GST is paid on the sale of assets where input tax deductions have been claimed. This applies to insurance receipts and de-registrations, as well as asset sales. The proposed changes will apply from 15 May, with a savings provision to preserve tax positions taken before this.

For more information see the Minister’s media statement and the issues paper. Submissions on the issues paper close on 15 June.

14 May 2018

Four special reports providing early information on new legislation in the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act enacted in March are now available.

The special reports cover the new rules for the:

- extension of the bright-line test to five years;

- provision of IRD numbers to Portfolio Investment Entities;

- PAYE reporting changes and changes to the payroll subsidy scheme; and

- employee share schemes.

Complete coverage of the new Act will be published in the June 2018 edition of the Tax Information Bulletin.

1 May 2018

The Government has today launched proposals for offshore suppliers of low-value goods to New Zealand consumers to collect and return GST on those goods. For more information see the Minister of Revenue and the Minister of Customs' media statement, questions and answers, discussion document, fact sheet, and letter from the Tax Working Group. Submissions close on 29 June.

Tax Working Group

For the terms of reference, news and other information see the Tax Working Group's website.

Highlights

An officials’ issues paper, GST on assets sold by non-profit bodies, released...

Four special reports providing early information on new legislation in the Taxation (Annual...

The Government has today launched proposals for offshore suppliers of low-value goods to New...

Research, Science and Innovation Minister Megan Woods and Revenue Minister Stuart Nash today...

Inland Revenue is seeking feedback on a proposal to ring-fence losses on residential rental...