CA ANZ has previously submitted that any change to the telecommunications rules must be workable and done with industry consultation. The existing rules were enacted as a pragmatic and practical response to historical problems and should be amended only once a workable solution can be found.
It is not clear that the proposals in the Issues Paper are designed to make the rules more principled.
The Discussion Document states that the proposed change would bring New Zealand into line with the OECD’s framework for indirect tax and with the other OECD countries.
New Zealand is an important (if small) voice at the OECD and we agree that it should comply with OECD frameworks to the extent possible. However we are not convinced that the proposed changes are compliant with the OECD framework.