Shifting Sme Costs ….

Shifting Sme Costs ….

Proposals to align payment dates of provisional tax and GST, base provisional tax on GST turnover and a suggestion that Government may subsidise the cost of SME’s engaging professional help to manage their tax obligations, clearly demonstrates Government’s knowledge of the compliance burden on business and their commitment to lower that cost.

“SMEs will be delighted with the proposed concepts but frustrated that they are only concepts and part of more discussion instead of actions to be implemented immediately”, said Auckland Chamber Chief Executive Michael Barnett.

He also warned that while some of the concepts would ease the cash flow pressures of SMEs, they would also introduce new pressures of debtor management.

“The concept of subsidizing the professional help SMEs may rely on, while positive for the SMEs and accounting industry, also shifted the cost from the SME to the taxpayer,” Mr Barnett said.

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