Minor errors in returns
(5 – New Zealand Institute of Chartered Accountants, 6 – Corporate Taxpayers Group, 8 – PricewaterhouseCoopers, 10 – KPMG, 11 – Ernst & Young)
The $500 threshold should be raised. Submitters suggest a range of increased thresholds from $1,000 to $100,000 (or 2% of turnover, if less). (New Zealand Institute of Chartered Accountants, Corporate Taxpayers Group, PricewaterhouseCoopers, KPMG, Ernst & Young)
There should be a maximum error, rather than a maximum tax effect of the error. (PricewaterhouseCoopers)
The threshold should be $500 per adjustment, rather than $500 per return. (KPMG)
Officials consider that $500 per return is a reasonable margin of error for individuals and SMEs, and large taxpayers should have systems in place to prevent large oversights.
Over time, further consideration to the threshold may be able to be considered depending on how the proposal works in practice.
That the submission be declined.