Taxation bill introduced

The Government today introduced the Taxation (FBT, SSCWT & Remedial Matters) Bill. The bill proposes a fund withdrawal tax to prevent avoidance of the new 39 percent tax rate through the use of employer contributions to superannuation schemes, and a three-tier fringe benefit tax that will allow employers to choose FBT rates that are closer to employees' personal tax rates. Other changes include repeal of use-of-money interest on yearly payments of fringe benefit tax, and clarification of the foreign investment fund rules as they apply to investors in New Zealand-resident companies that migrate. For details see the Commentary.