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

21 December 2016

From July 2017 financial institutions will need to begin meeting obligations under the OECD’s Common Reporting Standard for the Automatic Exchange of Financial Account Information in Tax Matters.

Legislation enabling the implementation of this international initiative in New Zealand is expected to be passed by March 2017. In anticipation of this, Inland Revenue has developed advanced draft guidance to help financial institutions prepare for their obligations as early as possible. “Financial institutions” for the purposes of this initiative has a wide meaning, including some fund managers, investment advisers, insurance companies, and trusts as well as banks. The draft guidance outlines how these various entities are affected and their responsibilities under the Common Reporting Standard.

The draft guidance also sets out the obligations that account holders (and other persons connected with accounts) will have to provide information to such financial institutions to assist those institutions comply with their responsibilities under the Common Reporting Standard.

Feedback on this draft guidance is welcomed. Following enactment of enabling legislation, a finalised guidance document will be prepared which will take into account submissions on this draft. Please send feedback and any queries by February 28th 2017 to global.aeoi@ird.govt.nz.

15 December 2016

An Order in Council made yesterday will make it compulsory for GST refunds to be direct credited from February 2017. For more information see the Minister of Revenue’s media statement.

14 December 2016

The Minister of Revenue Michael Woodhouse has released a Cabinet paper providing information on BEPS measures being considered by the Government. These measures would strengthen the transfer pricing and permanent establishment rules to address base erosion and profit shifting (BEPS) strategies used by some multinationals. The Government plans to release a discussion document to consult on this issue in early 2017.

8 December 2016

Submissions are sought on detailed proposals for amendments to the Tax Administration Act which build on earlier proposals released for consultation in November 2015.

The proposals which support the Government’s transformation of tax administration are aimed at helping to get tax right from the start. In particular, they centre around the roles of the Commissioner of Inland Revenue, taxpayers and their agents, information collection, confidentiality and disclosure and the design of a new Tax Administration Act. Submissions close on 24 February 2017.

For more information see the Minister of Revenue’s media statement and the discussion document Making tax simpler – Proposals for modernising the Tax Administration Act.

28 November 2016

As part of the global fight against base erosion and profit shifting, the OECD in conjunction with around 100 jurisdictions including New Zealand has developed a multilateral instrument that will amend double tax agreements between nations around the world. The OECD has now released the text of that instrument and the Government expects to sign it in 2017. Officials intend to consult on implementation of the multilateral instrument in the coming months. For more information see the media statements from the Minister of Revenue and OECD.

Highlights

The Minister of Revenue Michael Woodhouse spoke at the Chartered Accountants Australia and New...

The Government has today released early information on proposals to make the administration of...

The Government has released its response to the recommendations from the...

Last night the OECD released the finalised action plan for countering...