New tax law brings tax , greater certainty for taxpayers having bad credit

Legislation enacted today will provide for many people who get = into tax , introduce fairer instalment arrangements for paying off = tax , and give Inland Revenue greater flexibility in dealing with = taxpayers' problems.

"The new Taxation (, Refunds and Miscellaneous Provisions) Act = clarifies, for both the public and Inland Revenue, the appropriate = treatment for taxpayers who are finding it difficult to pay their tax = bills," Revenue Minister Michael Cullen said. =20

"The problem of spiralling tax was a recurring theme in the = findings of the Finance and Expenditure Committee's 1999 inquiry into = the powers and operations of Inland Revenue.  This goes a long way = towards meeting those concerns, and complements reductions in late = payment penalties legislated for last year.

"Underlying these changes is the principle that tax laws that are too = lenient or too harsh discourage voluntary compliance, which is the = backbone of the modern tax administration.  The new law strikes a = sensible balance," Dr Cullen said.  =20 =20 The new Act also: o       introduces comprehensive new rules governing the transfer of overpaid = tax within a taxpayer's account or to another taxpayer, changes that = give taxpayers greater certainty; o       removes the risk that warranty agreements by offshore warrantors will = attract GST twice, a change that is particularly important to importers = of motor vehicles and other goods under warranty; o       clarifies the law relating to the tax treatment of wage-related = provisions when a business is sold and employees are transferred; o       introduces changes to prevent the over-taxation of widely held unit = trusts and "Category A" group investment funds, resolving a longstanding = tax problem for the unit trust industry; o       introduces further measures aimed at simplification of the tax system = and reduction of tax-related compliance costs; o       clarifies the law to ensure that charities and other non-profit bodies = can claim GST refunds on all their activities except exempt activities, = such as the sale of  donated goods. Contact: Patricia Herbert [press secretary]471-9412 or 021-270-9013.  = Technical inquiries to Michelle Davie [tax adviser Minister's office] = 471-9728 =20

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<html-<head-</head-<body-<font face=3D'verdana' size=3D'2'-<b-New tax = law brings tax , greater certainty for = taxpayers</b-<br-<br-17 October 2002  Media Statement<BR-New law brings = tax , greater certainty for taxpayers<BR-<BR-<BR-Legislation = enacted today will provide for many people who get into tax , = introduce fairer instalment arrangements for paying off tax , and = give Inland Revenue greater flexibility in dealing with taxpayers' = problems.<BR-<BR-"The new Taxation (, Refunds and Miscellaneous = Provisions) Act clarifies, for both the public and Inland Revenue, the = appropriate treatment for taxpayers who are finding it difficult to pay = their tax bills," Revenue Minister Michael Cullen said.  <BR-<BR-"The = problem of spiralling tax was a recurring theme in the findings of = the Finance and Expenditure Committee's 1999 inquiry into the powers and = operations of Inland Revenue.  This goes a long way towards meeting = those concerns, and complements reductions in late payment penalties = legislated for last year.<BR-<BR-"Underlying these changes is the = principle that tax laws that are too lenient or too harsh discourage = voluntary compliance, which is the backbone of the modern tax = administration.  The new law strikes a sensible balance," Dr Cullen = said.   <BR- <BR-The new Act also:<BR-o       introduces comprehensive new = rules governing the transfer of overpaid tax within a taxpayer's account = or to another taxpayer, changes that give taxpayers greater = certainty;<BR-o   removes the risk that warranty agreements by offshore = warrantors will attract GST twice, a change that is particularly = important to importers of motor vehicles and other goods under = warranty;<BR-o    clarifies the law relating to the tax treatment of = wage-related provisions when a business is sold and employees are = transferred;<BR-o introduces changes to prevent the over-taxation of = widely held unit trusts and "Category A" group investment funds, = resolving a longstanding tax problem for the unit trust industry;<BR-o    = introduces further measures aimed at simplification of the tax system = and reduction of tax-related compliance costs;<BR-o       clarifies the law to = ensure that charities and other non-profit bodies can claim GST refunds = on all their activities except exempt activities, such as the sale of  = donated goods.<BR-Contact: Patricia Herbert [press secretary]471-9412 or = 021-270-9013.  Technical inquiries to Michelle Davie [tax adviser = Minister's office] 471-9728  <BR-<br-<br-The Michael Cullen mailing list = operated by OneSquared Limited.<br-<br-Click <a = href=3D' =3Dyes'-here</a- to unsubscribe.<br-<br-If the unsubscribe link is not = active, enter the following address in your browser address bar and = press the Enter = key.<br-<br- ribe=3Dyes<br-<br-You can also subscribe to this service or change and = maintain your existing subscription list by going to:<br-<br- <a href = =3D = '-</a-<br-<br-</font-</body-</head- ------=_NextPart_000_0001_01C275C4.B4B6E4C0--