| Completing company annual returns. |
The Companies Office will consider these concerns in its next review. The company annual return can be amended by gazette notice. |
Companies Office |
| The use of vehicles used for agricultural purposes between certain times and on certain days without an exemption permit (which costs per vehicle per year). |
Discussion at the joint industry/government Agricultural Transport working group. |
Land Transport New Zealand |
| Administration of the excise regime to accommodate the reality of large-scale contract bottling. |
Customs will also investigate ways that limitations on storage flexibility can be overcome without reducing clarity about excise obligations or assurance over Crown revenue. |
Customs |
| Many wine businesses consulted during the Review perceived the Alcohol Advisory Council (ALAC) levy as unfair and suggested the levy be subjected to a formal review. |
The Ministry of Health (MOH) is undertaking a review of the way that the ALAC levy is calculated as the existing levy-setting provisions are considered to be outdated and overly complex. Part of the current review is a targeted consultation with the representative bodies of the alcohol producers and importers, as well as ALAC, about options for changing the levy-setting mechanisms. The review is limited in scope and does not consider the role of ALAC. I consider Ministry of Health should engage with those who contribute to the funding of ALAC to foster industry / government partnership to address alcohol issues and ALAC outcomes. An Alcohol Advisory Council Amendment Bill is proposed for the 2007 legislation programme. |
Health |
| The perception that Inland Revenue (IRD) is overly zealous about penalising businesses for genuine errors and omissions in disclosure of their tax positions and overly prescriptive about forms of tax payments. |
The Government is considering making a number of changes in its next available Tax Bill (subject to Cabinet approval). These include removing GST and withholding-type taxes from the scope of the unacceptable tax position shortfall penalty and increasing the thresholds above which this penalty is imposed to over $50,000 and 1 percent of the taxpayer's total tax figure for the relevant tax return. Certain shortfall penalties will not be imposed where a taxpayer voluntarily discloses its error to Inland Revenue within two years of taking the tax position. Taxpayers will be notified the first time their payment is late, rather than imposing immediate payment penalties and the late payment legislation will be clarified relating to employer monthly schedules. |
IRD |
| A validation process for certificates of exemption. |
Inland Revenue is investigating. If such a process is feasible, it will assist in reducing the compliance costs associated with the use of contractors and the requirements to obtain each contractor's IRD number and send in an IR 345 monthly with just the contractor's IRD number. |
IRD |
| The threshold for twice-monthly PAYE payments. |
A review of the threshold for twice-monthly PAYE payments is being considered as a part of the Government Discussion Document Business Tax Review and the project is included in the Tax Policy Work Programme. |
IRD |
| Company Tax Rate. |
As part of the Government's Business Tax Review, consideration is being given to lowering the company tax rate to 30 percent and providing other tax concessions to businesses, such as targeted tax credits for Research and Development, skills training and export market development. If these proposals are agreed to, they would be likely to take effect from 1 April 2008. |
IRD |
| Fringe Benefit Tax Requirements. |
Businesses perceive that satisfying the fringe benefit tax (FBT) requirements is confusing, complex and expensive. Businesses proposed that simplification and greater guidance would assist matters. Inland Revenue is investigating whether it can further lower compliance costs for small businesses by reducing the number of FBT returns that have to be filed. |
IRD |
| Delays in IRD recognising that employees have left a business. |
Businesses have commented that it sometimes requires several reminders for Inland Revenue to recognise that employees have left the business. Delays in IRD recognising that employees have left a business are due to tight processing timeframes for employer monthly schedules. Inland Revenue is considering what can be done to improve the speed at which it recognises that an employee has left a business. |
IRD |
| A lack of information sharing within IRD. |
Businesses expressed frustration about the lack of information sharing within Inland Revenue and lack of information provided to firms. It was pointed out that many different forms required by Inland Revenue for different purposes ask for similar information, and that Inland Revenue does not provide enough information on returns. Inland Revenue is aware of problems associated with information sharing within and outside of the Department and is committed to finding solutions to the problems identified. |
IRD |
| The slow speed of MAF releasing Import Health Standards. |
Businesses expressed frustration with the slow speed of MAF releasing Import Health Standards. MAF is now undertaking some fundamental work reviewing how border standards are developed and implemented. This is likely to entail developing strategies for managing biosecurity risks across groups of commodity types and pathways. |
MAF |
| Businesses in the horticulture sector raised the concern that they are required to pay Pay As You Earn (PAYE) tax twice monthly. |
The Inland Revenue Department (IRD) proposes, in its Tax Policy Work Programme, to review the requirement for businesses in the horticulture sector to pay PAYE twice monthly. |
IRD |
| The frequency and cost of renewals for forklift licences. |
DoL will review licensing requirements in the Approved Code of Practice for the Training of Forklift Operators in the 2007/2008 Financial Year. |
DoL |