Ignorance of taxes ‘costing N.Z. jobs’

Press, 25 August 1988, Page 8

Ignorance of taxes ‘costing N.Z. jobs’

By

OLIVER RIDDELL

at Parliament

Ignorance among business managers is costing New Zealand jobs, according to the Associate Minister of Finance, Mr Neilson. ? ' ' : The business community, had little, knowledge about. tax changes that, z applied to companies and businesses. This was particularly alarming since some changes, such as the reduction; of . corporate tax, were already in place and; others were likely to have j

a direct impact soon. Only a quarter of business managers responsible for finance knew that company tax had been reduced in April. “That ignorance is costing us new investment and jobs right now,” Mr Neilson said. The Government had / recognised there was a need to remedy this significant gap in the information available to taxpayers and those advising them on the changes. “There are signs of stress among those who f are experiencing diffi-

culty keeping abreast of the changes,” he said. A programme of public information and education about tax reform was needed. In principle, this was no different from what had been done to establish the GST co-ordi-nating office. Preliminary discussions had been held with the Inland Revenue Department, the Society of Accountants and the Law Society, and it was hoped to work together to produce a comprehensive education programme, Mr Neilsoi| said.