New Zealand Law Society - Tax bill aims to simplify tax processes

Tax bill aims to simplify tax processes

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A bill which aims to simplify business taxation has been introduced to Parliament.

The Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill also makes changes to implement the disclosure requirements for foreign trusts recommended by the Government Inquiry into Foreign Trust Disclosure Rules.

Revenue Minister Michael Woodhouse says the changes include new business-friendly measures to simplify the provisional tax rules, which will provide a new pay-as-you-go option for small businesses to pay their provisions tax, from 1 April 2018.

The bill also proposes removal of the 1% monthly incremental late payment penalty on new GST, income tax, and the Working for Families tax credit debts, from 1 April 2017.

Measures to further strengthen and update New Zealand's international tax rules include introduction of a register of foreign trusts that is searchable by the Department of Internal Affairs and the Police, as well as annual disclosure statements.