Tax Working Group responds to article on ‘valuation day'

Tax Working Group responds to Stuff article on ‘valuation day’

Tax Working Group Chair Sir Michael Cullen says there’s no proposal under consideration that would require every New Zealand business to obtain a professional valuation all on the same day.

The assertion is made today in a Stuff opinion column by Troy Bowker.

Sir Michael says the Group is still examining design options for an extension of tax on capital income for its final report due in February and is looking carefully at a range of options that would minimise compliance costs.

“Any suggestion that we would deliver a recommendation that would saddle New Zealand businesses with billions of dollars in compliance costs is absurd and is just blatant scaremongering.

“While an approach that includes assets already owned would require some valuations, the Group is not considering options that would require every asset to be professionally valued, or all valuations to be carried out on the date that the tax would come into force.

“Valuation issues, including options to help small and medium businesses reduce the compliance costs associated with valuing assets, are still being considered by the Group and will form part of the final report to Government.”

ENDS

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