Tax Working Group
From Wikipedia, the free encyclopedia
The Tax Working Group is an advisory body that was created by the New Zealand Government in late 2017 to investigate ways of reforming New Zealand's taxation system and making it "fairer." Some key areas under its purview include the Goods and Services Tax and alleviating the housing market. The Working Group is headed by former Finance Minister Sir Michael Cullen.[1][2]
The Tax Working Group was established on 20 December 2017 with the stated goal of "examine further improvements in the structure, fairness and balance of the tax system." The Working Group will report to the New Zealand Government on the following matters:
- Whether the tax system operates fairly in relation to taxpayers, income, assets and wealth.
- Whether the tax system promotes the right balance between supporting the productive economy and the speculative economy.
- Whether there are changes to the tax system which would make it more fair, balanced and efficient.
- Whether there are other changes which would support the integrity of the income tax system, having regard to the interaction of the systems for taxing companies, trusts, and individuals.[3]
The Tax Working Group's responsibilities includes:
- Forecasting the economic environment for the next 5–10 years; taking into account demographic changes, changes in technology and employment practices, and their impact on business models.
- Investigating whether a system of capital gains taxation or land taxation (excluding the family home or the land under it), or other housing tax measures would improve the taxation system
- Investigating whether a progressive company tax (with a lower rate for small companies) would improve the taxation system and the business environment
- Investigating what role the taxation system can play in delivering positive environmental and ecological outcomes over the longer term.[4]
Areas outside the purview of the Working Group include: increasing any income tax or the GST rate; inheritance tax; the taxation of the family home or the land under it; the adequacy of the personal tax system and its interaction with the transfer system; and technical matters such as international tax reform under the base erosion and profit shifting agenda and policy chances as part of the Inland Revenue Department's Business Transformation programme.[4]