Tax picLast month a new tax bill was introduced into Parliament aimed at improving the fairness and modernisation of the tax administration system.

The bill contains proposals regarding the collection of employment and investment income information from taxpayers, to ensure they are on the correct tax code and receiving their correct entitlements.

Additionally, there are numerous reforms proposed to modernise the taxation of employee share schemes.  Employee share schemes – where companies provide shares/share options to employees as part of their remuneration – will be subject to tax treatment consistent with other forms of employment income.  Employers will be entitled to a deduction for the cost of shares in line with other forms of remuneration.  Some share awards will be excluded from the new rules depending on the date granted or acquired.

For more information on the introduced employment and investment income tax bill, go to http://taxpolicy.ird.govt.nz/news/2017-04-06-employment-and-investment-income-tax-bill-introduced