8 November 2013
Minister announces new tax policy work programme
The Government’s tax policy work programme, which outlines the Government’s focus for tax reform and development until the end of 2014, was announced today by Revenue Minister Todd McClay.
Speaking at the New Zealand Institute of Chartered Accountants’ tax conference in Auckland, Mr McClay said tax policy development work ahead would be focussed on supporting the Government’s economic priorities for growth and productivity, and delivering better public services.
“A well-targeted, and high-performing tax system is an essential part of the Government’s broader economic programme of realising our goal of returning to surplus in 2014-15. The tax reforms of 2010 were a good start and it is important that we continue to fine-tune the system to deal with new challenges as we move ahead. That includes making sure that the tax system remains fit for purpose. The new tax policy work programme reflects that objective”, says Mr McClay.
“Some of this work will complete projects the Government has already publicly consulted on, such as the cashing out of R&D losses. There are also a number of major new projects the Government wants to see delivered, and consultation with business and communities will be an integral part of shaping any future changes to the tax rules”.
There are three main areas of focus for the new tax policy work programme:
1. Making further improvements to the tax and social policy rules within the Government’s broad-base, low-rate tax framework - ensuring that the tax system is well maintained, kept up to date and continually improved. This includes people meeting their social policy responsibilities fairly, whether it is paying child support or repaying their student loan.
2. Continuation of the Government’s reform of our international tax rules, so New Zealand is an attractive place to do business and invest in while strengthening our tax rules to ensure that overseas companies pay their fair share of tax in New Zealand. Part of that work will focus on continuing our participation in the OECD-led international response to the global problem of base erosion and profit shifting (BEPS) by some overseas multinational companies.
3. The third work-stream sharpens the focus on tax policy development work to support Inland Revenue’s business transformation programme and the Government’s goal of better public services for New Zealanders.
“Again, wide consultation and collaboration will be a crucial part of these projects before any changes are adopted, to ensure new services reflect the needs and expectations of New Zealanders and the business community,” says Mr McClay.
The Government’s tax policy work programme can be viewed on Inland Revenue’s tax policy website: http://taxpolicy.ird.govt.nz/work-programme
Media contact: Rob Eaddy 0274 596 200