Source: New Zealand Government
A Bill that makes New Zealand’s tax system more open and transparent has passed third reading.
The Taxation Principles Reporting Bill will ensure that tax information is reported against a set of fundamental tax principles, every year, by Inland Revenue.
“Having good, consistent, publicly available information about the tax system is important,” Associate Revenue Minister Deborah Russell said.
“The Taxation Principles Reporting Bill requires reporting on the tax system to help fill the gaps in information available to the public and officials.
“IRD will be required to report annually its performance against a set of tax principles, using the following measures:
- income distribution and income tax paid
- distribution of exemptions from tax, and of lower rates of taxation:
- perceptions of integrity of the tax system
- compliance with the law by taxpayers.
“This Bill has been well traversed and simply informs and improves understanding, with the goal of making taxation information accessible to all.
“Regular reporting will ensure officials, politicians, and the public all have access to the same information.
“A good tax system aims to minimise compliance costs and provide certainty. Above all else, tax systems should also seek to uphold that most core value of New Zealand – fairness.
“Reporting this information to the public will allow New Zealanders to make judgements about the system based on established facts, reported every year,” Deborah Russell said.
The first report from Inland Revenue on the principles is due by the end of 2023.
