Tax site bridges Tasman

Inland Revenue is trying to encourage transtasman business by compiling tax information on a website.

The new site has been set up in partnership with the Australian Taxation Office and aims to make it easier for people considering business opportunities on the other side of the Tasman, and thus increase trade between the two countries.

"If it makes it easier by simplifying it, it's going to make it easier for them to feel more comfortable," said IRD spokesman Keith Taylor.

The department's 2003 statistics show that New Zealand had 6542 businesses sending exports to Australia, with a total value of $5.5 billion. Going the other way, 14,988 Australian businesses had exports to New Zealand worth $7.1 billion.

IRD was motivated to set up the site after receiving feedback from companies attempting the move.

"The starting point was really in going to small business and seeing what we could do to help," Taylor said.

The site compares taxation schemes in both countries, and gives information on a range of scenarios, from selling goods and services to setting up a permanent place of business in Australia.

A taxation table compares the two countries' systems and explains terminology and the treatment of common obligations.

The site also looks at the tax implications of New Zealand businesses dealing with Australia over the internet, as well as selling goods through an Australian agent.

IRD says the site is not meant to replace expert advice, but will arm businesses with basic information before they call on tax professionals.

www.ird.govt.nz/yoursituation-bus/nz-in-australia