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

29 June 2018

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

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.

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.

Tax Working Group

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

Highlights

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

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