Taxation law changes

Press, Volume CXII, Issue 32977, 25 July 1972, Page 16

Taxation law changes

(N.Z. Press Association) WELLINGTON, July 24. Companies with balance dates earlier than March 31 in the tax year will have their tax payment dates adjusted so as to remove the advantages they have enjoyed in the past over companies with the statutory March 31 or later balance date, the Minister of Finance, Mr Muldoon, said today in a statement amplifying his Budget statement. “It is not intended to preclude companies adopting the balance date most suitable to their requirements,” he said, “but it is considered that, if companies wish to take advantage of an early balance date, it is not unreasonable to require them to pay their tax earlier.”

The Minister indicated that the Government’s proposals would be set out in detail in the Land and Income Tax Amendment Bill (No. 2) to be introduced early next month. Mr Muldoon also referred to the proposals announced last December that subsisting companies would be required to pay one-third of their tax in September and the remainder in March. This change to an instalment basis was first to apply to tax on income derived during the year to March 31, 1973. Where subsisting companies had early balance dates, both instalments would be advanced in accordance with the proposals for early balance dates.