Dunne welcomes move towards reducing tax return complexity

Revenue Minister Peter Dunne welcomed a consultation document released by Inland Revenue today containing proposals to modernise the company income tax return.

The proposals include rationalising various end-of-year tax forms into a single form, a more tailored reporting approach for companies, and a move to compulsory electronic filing of company income tax returns.

“All companies could benefit from a more tailored approach to income tax return compliance under the proposed changes,” said Mr Dunne.

“For small and medium-sized companies in particular, the proposals would significantly reduce the time and effort involved in meeting income tax return requirements.”

Mr Dunne said he supported proposals to make electronic filing of company income tax returns compulsory.

“Around 75 per cent of company income tax returns are already filed online, and Inland Revenue would like to make that figure 100 per cent by the proposed timeframe of the 2010-11.”

Mr Dunne urged businesses to get involved in the discussion.

“This is your chance to have a say on the proposed changes to the income tax return and the way it will be filed in the future.”

Submissions on the proposed changes must be received by 30 September 2008. The consultation document can be found at http://www.ird.govt.nz/public-consultation/ .