A discussion document released today could simplify taxpayers’ fiscal year-end processes while increasing accuracy in the system, says Revenue Minister for New Zealand Michael Woodhouse.
Mr Woodhouse said in his statement: “The discussion document, (being referred to as Investment income information) is the sixth in a series of public consultation documents and seeks to improve the administration of tax on income earned from investments.”
To achieve simplification, the discussion document proposes that:
All New Zealand based companies that issue dividends will have to provide a similar reporting level to Inland Revenue, in the same way that banks and portfolio investment entities currently must do.
All companies and legal entities that pay investment income must also provide their full details and all information associated with this to the New Zealand Inland Revenue on a more regular basis.
While taxable distributions from New Zealand authorities to their members are not classed as investment income at the moment, they still must pay the same type of tax which is why they are being considered in the proposals.
Details of the full document can be found at the following website: www.makingtaxsimpler.ird.govt.nz.