May bill proceeds, Dairy Board legislation added
The bill introduced in May, the Taxation (Annual Rates, GST and Miscellaneous Provisions) Bill, had its second reading in Parliament today. Main features of the bill are wide-ranging changes to GST and the introduction of an income attribution rule to counter avoidance of the 39% personal tax rate.
Legislation allowing tax deductions for rebates paid by the New Zealand Dairy Board will be added to the bill by means of a supplementary order paper (no 76) released today. It entitles the Dairy Board to a tax deduction for rebates paid for the income years spanning 1989 and 2004. From the 2004-05 income year the deduction for rebates paid will be limited to the Dairy Board's taxable profits. The proposed legislation mirrors and extends provisions in last year's now defunct Dairy Industry Restructuring Act.