More time needed on changes to stop tax schemes

The government wants to take more time to consider proposed measures to shut down tax schemes involving leases on overseas assets, Finance Minister Michael Cullen and Revenue Minister Peter Dunne announced today.

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The government wants to take more time to consider proposed measures to shut down tax schemes involving leases on overseas assets, Finance Minister Michael Cullen and Revenue Minister Peter Dunne announced today.

The proposed law changes, announced in June, are part of a taxation bill being considered by Parliament's Finance and Expenditure Committee.

"Submissions on the proposed changes have raised a number of complex policy issues that will need more time for consideration than we originally envisaged," Dr Cullen and Mr Dunne said.

"Our specific area of concern is the appropriate treatment of leases in existence when the changes were announced, and our investigation of the matter has not yet concluded.

"The government has therefore written to the select committee to advise it that more time is needed for consideration of the points raised in submissions, and for the time being government does not wish to continue with the amendment.

"If the amendments can be delayed for a short time, once the policy questions have been resolved the government will aim to have them legislated for at the earliest opportunity.

"The proposed treatment of leases entered into after the 20 June 2007 announcement date will remain unchanged and the eventual change, once legislated for, will still apply from that date," they said.