Revenue
Speech

It is my pleasure to be with you here today to unveil the next important stage of how the Government is making tax simpler for business. 

Over the last few years we have taken the first steps in what is a very significant journey towards a simpler tax system for New Zealand.

While our tax system is among the best in the world, and is internationally recognised for that, I know that we can do better. The reality is that as the world becomes more and more connected, and more digital, we need to keep looking at what we can do to improve.

Todd McClay Revenue
Release

Revenue Minister Todd McClay says Inland Revenue’s Business Transformation programme is likely to take less time, cost less, and deliver more benefits than the original projections.

Mr McClay was speaking at the Trans-Tasman Business Circle, where he released two consultation papers. The first, making it simpler for businesses to manage PAYE and GST and the second looking at the Tax Administration Act.

Todd McClay Revenue
Release

Revenue Minister Todd McClay says New Zealand and international companies are reaping the benefits of the billion dollar programme to modernise and simplify New Zealand’s tax administration.

“We said the transformation of New Zealand’s tax administration would use a mixture of New Zealand and international expertise – and where a New Zealand company could do the work, I would expect they would be given the opportunity to.

Todd McClay Revenue
Release

Minister of Revenue Todd McClay has welcomed a decision by the Cook Islands government to implement the 'Automatic Exchange of Financial Account Information in Tax Matters Agreement' (AEOI) and says the Cooks Islands and New Zealand will play their part to target international tax avoidance.  

AEOI is at the heart of international efforts to reduce international tax evasion, and strengthen international efforts to increase transparency among financial institutions and tax administrations.

Todd McClay Revenue
Release

The Taxation (Bright-line Test for Residential Land) Bill passed its second reading in Parliament tonight.  

The bill proposes an easy-to-understand “bright-line” test, requiring income tax to be paid on gains from residential property purchased and sold within two years.  The only exceptions are an owner’s main home, inherited property, or the transfer of relationship property.

Todd McClay Revenue
Release

Revenue Minister Todd McClay says many hours of taxpayers’ time is being saved by Inland Revenue’s innovative changes to online and phone services.

The most recent is the ability to activate personal online MyIR accounts by text rather than having to phone Inland Revenue’s call centre to do it.

“That alone has saved 8 minutes for each of the 11,000 customers who’ve used the service in its first month,” says Mr McClay.

Todd McClay Revenue
Release

Revenue Minister Todd McClay and Small Business Minister Craig Foss have welcomed a new initiative dedicated to helping small businesses better understand tax and finance.

Business.govt.nz has created a new section of the website called Tax and Finance, which covers everything from tax types to payroll dedications, and offers sound advice on topics such as how to reduce your tax bill, setting budgets and getting paid on time,” Mr Foss says.

Craig Foss Todd McClay Small Business Revenue
Release

The increase in customers filing tax online has meant big savings in postage and printing.

Revenue Minister Todd McClay says Inland Revenue was spending more than $18 million on print and postage each year, but by giving customers access to their details online, it is dropping dramatically.

“Because most customers have embraced online filing Inland Revenue has saved $600,000 per year on prepaid envelopes for Employer Monthly Schedules (EMS), and this is expected to fall much lower,” says Mr McClay.

Todd McClay Revenue
Release

Revenue Minister Todd McClay says the Government’s aims to broaden New Zealand's economic base means ensuring that the tax system does not discourage innovation.

“Companies that invest in research and development are investing in New Zealand’s future prosperity,” says Mr McClay.

The Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Bill last night passed its second reading.

Todd McClay Revenue
Release

Doing business with Inland Revenue is 23 per cent easier than it was last year, says Revenue Minister Todd McClay.

“Inland Revenue’s stated aim is to save taxpayers time and money and it is working,” says Mr McClay.

The latest business reference group survey, which looks at levels of effort dealing with government departments, shows a 23 per cent reduction in effort dealing with Inland Revenue, compare to last year.

Todd McClay Revenue
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Revenue Minister Todd McClay says measures aimed at encouraging liable parents to meet their child support obligations and reduce unreasonable levels of long-term child support debt are a step closer, following the second reading of an omnibus tax bill in Parliament today.

The Taxation (Annual Rates for 2015-16, Research and Development, and Remedial Matters) Bill includes proposals to deal with long-standing child support debt, announced in Budget 2015.  

Todd McClay Revenue
Release

A bill aimed at preparing the way for a simpler and more modern tax administration system passed its first reading in Parliament today.

Revenue Minister Todd McClay says changes proposed in the Taxation (Transformation:  First Phase Simplification and Other Measures) Bill are part of the staged roll-out of Inland Revenue’s Business Transformation programme, which, over time, will reform the department’s business practices and modernise our tax system.

Todd McClay Revenue
Release

The OECD last night released its final package of actions to address base erosion and profit shifting (BEPS). The Minister of Finance Bill English, and Minister of Revenue, Todd McClay say that the plan, representing two years of intensive work by the OECD and G20 nations will be a significant step forward in the fight against BEPS.

“BEPS behaviours can result in multinationals paying little or no tax anywhere in the world, so this announcement is a big step forward and the culmination of over two years’ work by the international community” Mr English says.

Todd McClay Bill English Revenue Finance
Release

Revenue Minister Todd McClay says the new bright-line test, which comes into force today, will improve compliance with the current residential land sale rules and help to ensure that people pay their fair share of tax on gains from property sales.

“Any gains made on residential property purchased and sold within two years, will be subject to income tax, with some exceptions.  The exceptions include the sale of an owner’s main home, inherited property, or the transfer of property in a relationship settlement.

Todd McClay Revenue
Release

Revenue Minister Todd McClay says Labour finance spokesman Grant Roberson is trying to have his cake and everyone else's too over his position on fair property taxation legislation currently before parliament.

The objective of the Bright-line Bill, which is currently before the Finance and Expenditure Select Committee, is to improve compliance with the current land sales rules in the Income Tax Act.

Todd McClay Revenue
Release

Revenue Minister Todd McClay has welcomed the release today of an issues paper that provides options to improve the way certain GST-related rules operate in practice.

“The practical solutions to the issues discussed in this paper are a good example of private and public sector cooperation, and illustrate the benefits of consultation in making sure our tax rules remain current, and that they work well in practice,” says Mr McClay.

“While our GST system generally works well, it is important that the system remains broad-based and fair.”

Todd McClay Revenue
Release

Revenue Minister Todd McClay says that a consultation paper released today focusing on the question of loss grouping and imputation credits could remove obstacles to business growth and provide greater investment opportunities for mum and dad investors.

“Companies paying dividends to shareholders can pass credits (known as imputation credits) on to those shareholders for tax paid on profits at the company level.

“This is good because it makes investment more attractive,” says Mr McClay.

Todd McClay Revenue
Release

Revenue Minister Todd McClay and Land Information Minister Louise Upston say people buying and selling property for profit will now be unable to avoid paying their fair share of tax.

Provisions introduced in the Taxation (Land Information and Offshore Persons Information) Bill passed the Third Reading in Parliament today.

The resulting measures amend the Land Transfer Act and Tax Administration Act 2015, and will see Land Information New Zealand (LINZ) collect additional information when property is bought and sold, and pass this information to Inland Revenue.

Louise Upston Todd McClay Revenue Land Information
Release

The Taxation (Bright-line Test for Residential Land) Bill, which contains proposals to improve compliance with the tax rules on the sale of residential land, has passed its first reading in Parliament.

Revenue Minister Todd McClay says proposals in the bill to supplement the current “intention” test in the Income Tax Act will make it easier for Inland Revenue to identify speculators in residential property and make sure they pay their fair share of tax.

Todd McClay Revenue
Release

Revenue Minister Todd McClay says a paper released today for public feedback aims to make the current tax rules for closely held companies more workable.

Closely held companies, which typically have only few shareholders, make up a significant proportion of the total number of companies in New Zealand.

There are specific tax rules available for such companies, including the look-through company rules introduced in 2011, to ensure that the decision on whether to convert a small business to a company is not driven by tax considerations.

Todd McClay Revenue
Release

Revenue Minister Todd McClay announced today that Cabinet has given its approval to a set of proposals intended to address the current inequitable situation where debt remission between related parties can, under certain circumstances, result in an incorrect taxation outcome.

At present, in cases when such debt is forgiven by the creditor, and no longer has to be repaid, it becomes taxable income for the debtor. However, because the arrangement is between related parties, the creditor does not receive a tax deduction for the bad loan.

Todd McClay Revenue
Release

Public consultation begins today on the Government’s proposed residential land withholding tax with the release of a paper seeking public feedback.

Revenue Minister Todd McClay welcomed the release and says the proposed tax would apply only to offshore sellers. He says it is an important part of the Government’s residential property tax compliance work and will ensure tax is paid under the Bright-line test legislation.

Todd McClay Revenue
Release

Revenue Minister Todd McClay says measures proposed in a tax bill introduced today will improve compliance with the current residential land sale rules and help to ensure that people pay their fair share of tax on gains from property sales.

Todd McClay Revenue
Release

Revenue Minister, Todd McClay, today released a discussion document on the collection of GST for online purchases.

GST: Cross-border services, intangibles and goods contains proposals to require overseas suppliers to register and return GST when they sell services (including online products such as e-books, music and videos) to New Zealand consumers. It also outlines the way forward for improving the collection of GST on all goods, including low-value imported goods.

Todd McClay Revenue