In a speech to the International Fiscal Association today, Revenue Minister Peter Dunne announced the Government’s tax policy priorities for 2012-13.
This includes various base maintenance measures to protect the integrity/coherence of the tax system (to support Government’s 2014/15 surplus target), including a further review of the thin capitalisation rules.
Overall, there is nothing really new in terms of tax policy initiatives, with a number of the work programme items (including mixed-use asset changes, dividend and imputation reviews, and an active income exemption for branches) already well signalled.
Given the importance of revenue collection to achieving the Government’s economic objectives, the approach is very much one of removing obstacles to Inland Revenue performing its core function as efficiently as possible.
It appears that current tax policy settings are considered to be broadly right.
This taxmail discusses the Government’s tax
priorities for 2012-13 in greater detail.
If you have any questions on the above, please speak to your usual KPMG advisor, or contact John Cantin.