Simplifying tax system will help business confidence

Simplifying tax system will help business confidence and compliance

Removing the uncertainty associated with provisional and withholding tax complexity will be widely applauded by the business community.

Michael Barnett, head of the Auckland Chamber was responding to proposals unveiled for small and medium sized business to pay tax as they go rather than estimating lump sum payments ahead of income.

“Too often having to pay provisional tax ends up as a cost against the business and complicates their dealings with Inland Revenue and other businesses,” said Mr Barnett.

The removal of provisional tax will make it easier for businesses to keep tidier records and meet tax obligations in a progressive pay-as-they-go way.

The changes have been long sought by the Chamber of Commerce, said Mr Barnett.

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