NZ Accountants Propose Simplified Tax System
Policy advice doesn’t always have to come from the government - the Internet allows other interested parties to consult with stakeholders too.
Will innovative suggestions be stymied by inflexible IT systems?
Accountants have plan to simplify small business tax
With tax reform in the air, the New Zealand Institute of Chartered Accountants has put up a set of proposals to radically simplify the taxation of small businesses.
Tax is their biggest source of compliance costs and NZICA estimates its proposals could reduce them by up to a third.
In the case of “micro” firms it proposes they pay income tax on their turnover at a 15 per cent rate. That would be the final tax and cover their ACC liabilities as well.
The Inland Revenue, on the other hand, might take the view that simplification for small businesses, if optional, would just mean additional complexity for it and its creaky IT systems.
It would also simplify cashflow issues around social policy systems administered by the Inland Revenue, notably child support, Working for Families tax credits and student loan repayments.
people could read the proposals and have their say on a website set up for the purpose: www.smetax.co.nzRead more at www.nzherald.co.nz



