Hon Peter Dunne
Minister of Revenue
Associate Minister of Health
MEDIA STATEMENT
Dunne: higher tax thresholds mean less compliance burden on SMEs
Revenue Minister Peter Dunne today welcomed Inland Revenue's update of tax regulation Determination E11 as a further measure to reduce compliance costs on businesses.
Mr Dunne said the updated regulation is a complementary part of the $480 million package of business tax measures announced last month aimed at easing cash flow problems for small businesses.
The Determination is important for businesses because it details the thresholds that apply to accrual expenditure adjustments for certain pre-paid business costs such as advertising, travel and lease costs at the end of the income year. New Determination E12 raises the monetary thresholds at which businesses must make these accrual adjustments for tax purposes.
"Raising the thresholds for these items will reduce the number of adjustments that business taxpayers have to make at the end of the income year. That will mean less time and money spent on completing these tax requirements, which ultimately will be reflected in increased cash flows," Mr Dunne said.
The updated Determination is available at www.taxpolicy.ird.govt.nz.
Mark Stewart, Press Secretary