11 July 2013
Taxation and Remedial Matters Bill passes third reading
Revenue Minister Todd McClay has welcomed the passage today of a tax bill which increases the integrity of the tax system by ensuring that more people pay the tax they should.
The new legislation, introduced in September 2012 as the Taxation (Livestock Valuation, Assets Expenditure and Remedial Matters) Bill includes as major items:
- tightening the rules for deducting costs of assets such as holiday homes, boats, and aircraft that are used by the owner, both privately and to earn income,
- changes to the GST rules including a change introducing a registration system which would allow GST refunds for certain non-resident businesses with some restrictions,
- making lease inducement payments and lease surrender payments taxable income for the recipient and tax deductible expenditure for the payer, and
- detailed supporting provisions to the 2012 livestock valuation rule change which made elections to use the herd scheme generally irrevocable.
Mr McClay says that the changes are sound measures which contribute to a strengthening economy.
“It’s imperative that we all pay our fair share of tax. By doing that, we reduce the national debt burden. Our tax system works when the tax laws are seen to apply equally to everyone. The changes passed by Parliament today will contribute to applying the tax burden fairly,” Mr McClay says.
Media contact: Rob Eaddy 027 459 6200