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Inland Revenue

Tax Policy

Announcements
PUBLISHED 9 March 2012

Minister requests application date change to help businesses

Revenue Minister Peter Dunne has written to the chair of Parliament's Finance and Expenditure Committee asking the committee to consider deferring the application date affecting GST payments on late payment penalties contained in the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill. The change is scheduled to come into force on 1 April 2012 but the bill is not expected to pass before June, giving businesses insufficient time to update their systems. For more information see the Minister's media statement.


Hon Peter Dunne
Minister of Revenue

Media Statement

Dunne: deferral of application date would help business

Revenue Minister Peter Dunne has invited the Finance and Expenditure Committee to consider deferring the application date affecting GST payments on late payment penalties to allow affected businesses time to change their systems.

“The Taxation (Annual Rates, Returns Filing, and Remedial Matters Bill) introduced in September 2011 contains a measure in Clause 137 which makes it clear that GST is payable on late payment fees,” Mr Dunne said.

“When the bill was introduced in September last year, it was considered that the application date of 1 April 2012 would give businesses affected by the proposed change sufficient time to update their systems.

“However, with the lapsing of the bill as a result of the general election and the need for it to be reinstated following the reconvening of the new Parliament earlier this year, the bill is very unlikely to be enacted by 1 April.

“I am concerned this will not give affected businesses sufficient time to make the necessary changes to their administrative systems,” Mr Dunne said.

“I have therefore written to the chair of the Committee, Simon Bridges, outlining my concerns and invited the Committee to consider the deferment of the application date for this measure in the bill until 1 January 2013.

“On the assumption that the bill is likely to be enacted by July this year, a 1 January 2013 application date would give these businesses six months to update their systems to accommodate the change,” he said.

“I have taken the liberty today of announcing my request to the Committee to give greater certainty to businesses likely to be affected by the proposed change, although it is the select committee that will recommend any changes to the proposed legislation.”

Ends

Mark Stewart | Press Secretary | Office of Hon Peter Dunne
Cell +64 21 243 6985