Dunne: Earthquake tax bill passes
The Canterbury earthquake tax bill passed yesterday will provide businesses and individuals with practical help and certainty in their tax affairs in the wake of the September and February earthquakes, Revenue Minister Peter Dunne said.
The main features of the new Taxation (Canterbury Earthquake Measures) Bill, are:
- an exemption from tax and gift duty on trading stock donated by businesses to those affected by the two Canterbury earthquakes, effective from 4 September 2010 until 31 March 2012;
- an exemption from income tax and fringe benefit tax on certain welfare contributions such as cash, goods and accommodation made by employers to their employees to help them deal with the aftermath of the earthquakes. The exemptions apply to income other than normal pay and benefits provided by employers to their employees within eight weeks of the September 2010 or February 2011 earthquakes;
- delaying the proposed repeal of the redundancy payment tax credit so that the credit remains available until 30 September 2011;and
- providing the Commissioner of Inland Revenue with the ability to determine an emergency event so that certain income is excluded for Working for Family purposes.
Mr Dunne said the bill was passed under urgency to make sure the measures were available to help Christchurch city and its people deal with their immediate needs and the challenge of rebuilding their lives, homes and businesses.
Further legislation on depreciation issues associated with the earthquake will be tabled later this year, he said.
Mark Stewart | Press Secretary | Office of Hon Peter Dunne
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