Lower tax and less time filling in forms

Imagine small businesses having the ability to put their time into business; not working for the government doing tax compliance work.

The Institute is putting a proposal to the Government to massively reduce the cost and complexity of tax matters for SME’s. The aims are:

• Tax takes less than an hour a week

• One GST and Income tax a month or less

• No FBT or provisional tax.

They are looking for your support and comment.

We are the people/businesses that will be most affected.

Summary of Small Business Taxation recommendations:

• A simplified tax system for businesses with turnover of less than $1.2 million per year.

• A merger of the sole trader and company/partnerships entities for tax purposes, thus removing the transactions between the business earning entity and its owners

• The owners pay tax on the basis of the personal tax rates (starting at 12.5 percent, up to 38 percent)

• Income tax will be calculated and paid two monthly on a simplified cash basis on the GST return
  
  
• No end of year balance date and square up issues
  
  
• Trading stock (except for livestock) purchases are deducted on a cash basis - no need for stock takes for tax purposes.
  
  
• No provisional tax, no fringe benefit tax and no entertainment tax
  
  
• Simplified rules for depreciation.

Download the website and report here.



An interesting summary published by the NZ Institute of Chartered Accountants gives a very readable commentry.

Please share this with your associates and lets see if we can make a difference.


To succeed... You have to believe in something with such a passion that it becomes reality - Anita Roddick