Date posted: 3/12/2020

New NZ Revenue Minister commits to collaborative approach

In a wide-ranging keynote address to the CA ANZ 2020 Tax Conference, new Revenue Minister David Parker outlined his priorities.

In brief

  • New Revenue Minister commits to work with others, including Chartered Accountants Australia and New Zealand, to design and deliver services
  • A Small Business Growth Fund, establishing a micro-finance company for small businesses, is mentioned
  • A Small Business Growth Fund, establishing a micro-finance company for small businesses, is mentioned

In his first public speech as Revenue Minister, David Parker committed Inland Revenue to increasingly work with others, including Chartered Accountants Australia and New Zealand (CA ANZ), to design and deliver services.

"Over the next twelve to eighteen months we'll need a strong tax and social policy system to help support recovery."

In a wide-ranging keynote address to the CA ANZ 2020 Tax Conference, in which he highlighted his business credentials, Parker said "Government, IR and CA ANZ all need to work together and tailor a response for businesses which are operating in a different environment than they'd planned for.

"I'm confident that we will continue to work in a positive and constructive way."

CA ANZ worked closely with IR during the pandemic, helping craft business support measures.

Parker said he had asked officials to provide further advice, before the end of the year, on changes to the Small Business Cashflow loan scheme that will allow more businesses to benefit from it, such as adjusting the eligibility criteria for the loan.

He said New Zealand is not spared the ongoing effects of this global pandemic. "This is why the first item of business for Cabinet was making improvements to the Small Business Cashflow loan scheme to provide ongoing support as we rebuild from COVID-19.

"We are also looking at new ways to support small businesses with finance, such as the proposed Small Business Growth Fund which establishes a micro-finance company for small businesses.

"The second priority is to get the flexi-wage scheme up and running by the end of the year. It's essentially a wage subsidy programme that assists employers to hire and helps people with training or mentoring to gain the skills for a job."

Digital Services Tax (DST)

Parker said the Government's "preference continues to be an OECD-led multilateral solution rather than a proliferation of DSTs.

"However, success at the OECD is not guaranteed and has been blocked for some time. We are seriously considering implementing a DST in the event the OECD project fails to reach agreement within a reasonable timeframe."

He said the Government had "some concerns" with the OECD policy, particularly around its complexity and potential compliance costs.  "We are working with the OECD to address these. 

"Despite this, the current policy design does broadly fit with New Zealand's interests and we support its prompt development."

The OECD intends to deliver a multilateral solution by mid-2021.

Parker also said there were also a number of projects that officials have been consulting on including the tax treatment of donated trading stock, loss continuity and a permanent loss carry back scheme.

Keynote address to CA ANZ Tax Conference 

READ THE FULL SPEECH

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