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

14 August 2018
Government moves to close GST loophole

Today Minister Nash announced that as part of a Supplementary Order Paper (SOP) to the tax bill currently before parliament, the Government will look to close a GST loophole where not-for-profits arguably don’t have to pay GST on sales of assets.

The Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill was introduced on 28 June 2018 and is at the Select Committee stage.

As well as this measure, the SOP proposes extending the depreciation roll-over relief provisions for businesses affected by the Canterbury earthquakes for a further five years, to the end of the 2023-24 income year.

For more information see the Minister of Revenue’s media statement, the SOP, and the regulatory impact assessment.

13 August 2018
Hong Kong DTA updated

An amendment to New Zealand’s double tax agreement with Hong Kong has now entered into force. The amendment widens the exchange of information provisions for the purposes of eradicating tax evasion and avoidance. It brings the agreement with Hong Kong into line with the majority of New Zealand’s other double tax agreements by enabling the automatic exchange of information between the two tax jurisdictions. For more information see the Minister of Revenue’s media statement.

2 August 2018
BEPS Multilateral Instrument ratified

New Zealand has now ratified the OECD’s Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the “Multilateral Instrument”, or MLI), which is expected to enter into force for New Zealand from 1 October 2018.

This follows the recent enactment of measures to counter BEPS – activities multinational companies take to reduce the tax they pay.

The MLI will allow New Zealand to adjust its existing double tax agreements with other participating countries swiftly to adapt to the OECD’s new treaty provisions on anti abuse, dispute resolution and transfer pricing.

Normally these changes require a manual process of renegotiating each DTA individually. The MLI means New Zealand can do it automatically.

For more information, including the ratification status of other countries, see the OECD's information about the MLI.

29 June 2018
Bill introduced to modernise and simplify New Zealand’s tax system

The Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Bill was introduced in Parliament yesterday.

The Bill proposes measures to simplify tax returns for individuals and update the Tax Administration Act. It also adds 13 charities to the list of donee organisations in schedule 32 of the Tax Administration Act, proposes amendments to make KiwiSaver more accessible, and includes numerous other policy, remedial and technical changes to tax legislation.

For more information see:

- the Minister’s media statement;
- the Bill as introduced;
- the commentary on the Bill;
- the regulatory impact assessments; and
- Making Tax Simpler feedback summary documents and Cabinet papers.

27 June 2018
BEPS Bill passes third reading

The Taxation (Neutralising Base Erosion and Profit Shifting) Bill passed its third reading in the House last night. The Bill contains measures to prevent multinational companies from avoiding tax by shifting profits out of New Zealand. For more information see the Minister of Revenue’s media statement.

Tax Working Group

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

Highlights

Budget 2018

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

Four special reports on new tax legislation now available

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