Select committee reports on taxation bill
Parliament's Finance and Expenditure Committee has reported on the Taxation (Annual Rates, GST, Trans-Tasman Imputation and Miscellaneous Provisions) Bill, introduced in June.
The recommended changes include the addition to the bill of an amendment to the definition of "qualifying trust". A new provision would enable a non-qualifying trust to become a qualifying trust retrospectively if all its income tax obligations, including use-of-money interest and penalties, are satisfied. This would prevent beneficiaries of trusts becoming subject to disproportionate penalties as a result of a proposed Inland Revenue interpretation on the tax treatment of trusts.
For information on this and other recommended changes see the bill as reported from the Finance and Expenditure Committee at http://www.clerk.parliament.govt.nz and the officials' report to the Finance and Expenditure Committee on submissions on the bill.