Provisional tax pooling

Clauses 405 and 406

Submissions

(44 – Provisional Tax Finance, 45 – Tax Management New Zealand, 50 – Electronic Tax Exchange, 67 – New Zealand Institute of Chartered Accountants, 68A – Corporate Taxpayers Group)

Provisional Tax Finance, Tax Management New Zealand, Electronic Tax Exchange, New Zealand Institute of Chartered Accountants, and the Corporate Taxpayers Group support the proposed changes in the bill to enable taxpayers to transfer their funds from one tax pooling intermediary to another while retaining the original deposit date of the funds. This provision is pivotal in creating competition in the tax pooling market and will clearly deliver benefits to taxpayers.

Tax Management New Zealand has received strong support from their clients for the proposals in the bill to extend tax pooling to reassessments of all taxes. Provisional Tax Finance also supports the extension of the regime to reassessments of other tax types.

Recommendation

That the submissions be noted.