Government moves on Tax Reforms to assist Small to Medium-Sized Enterprises (SMEs)


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Government moves on Tax Reforms to assist Small to Medium-Sized Enterprises (SMEs)

The COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (“the Act”) came into force on 30 April 2020. The measures in the Act involve changes to income tax, tax administration, primary industries, consumer protection and crown owned entity regulatory requirement measures. The Government sees these tax and other changes as throwing a lifeline to small businesses.

The Act contains the following tax and non-tax measures:

  • A temporary tax loss carry-back regime to provide cash-flow to businesses;
  • Increases the administrative flexibility for Inland Revenue to quickly modify due dates, timeframes or other procedural requirements for taxpayers impacted by COVID-19;
  • Ensures the tax and social policy treatment of benefits and pensions paid to people stranded overseas is consistent with the treatment of equivalent payments to people in New Zealand;
  • Defers the commencement of provisions that restrict the performance of routine surgical procedures on animals so that farmers can continue to perform these;
  • Advances the commencement date of improved consumer protections under the Credit Contracts Legislation Amendment Act 2019, while deferring broad system changes;
  • Extends the timeframe for certain Crown entities to provide planning documents to the responsible or shareholding Ministers.

 

The complete commentary on the Act can be found on the Inland Revenue Department’s website:

http://taxpolicy.ird.govt.nz/publications/2020-bill-commentary-covid-19-torum-bill/overview

 

If you have any questions regarding the Act, ABMM has an experienced Commercial Team that is happy to assist.

 

Please contact:

contact@abmm.co.nz or call 06 757 5183

 

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