KEY POINTS:
Small and medium-sized businesses (SMEs) may be set to get what they have been clamouring for most from the politicians - tax reform.
The Government indicated today it was interested in lowering tax-related compliance costs for SMEs.
A discussion document available from Inland Revenue has been released by Finance Minister Michael Cullen and Revenue Minister Peter Dunne.
Many of the potential changes in the document focus on raising business tax thresholds, which could mean reducing the number of tax returns a firm must make, the data it must supply or the calculations it must make.
"In short, raising thresholds may mean fewer tax matters for a business to deal with," the ministers said.
The discussion document also looks at ways of simplifying the law for certain expenses, such as entertainment and legal expenses.
It also touches on fringe benefit tax on motor vehicles, and simplifying GST invoices.
There are two closing dates for submissions on the document. January 31 is for submissions on raising thresholds, so resulting changes can be included in the taxation bill planned for introduction in May.
February 29 is the deadline for submissions on all other matters, "many of which will need more detailed consideration and may be included in a future taxation bill," the ministers said.
- NZPA
