Poor process, poor law
Parliament needs to revamp how tax policy is written, says a leading tax adviser.
There needs to be more contestable advice on tax matters and more awareness of the needs of the country’s smaller businesses, says departing New Zealand Institute of Chartered Accountants tax director Craig Macalister.
Tax bills usually go before Parliament’s finance and expenditure select committee and often, prior to that, are canvassed in discussion document or options paper form by the IRD.
In the past both the institute and the Law Society made longer submissions than others on tax laws. Their work is not, like most submitters, confined to the broader policy goals of a bill, but also delves into minutiae of implementation.
That changed under the current government, he said. Now all submitters get 10 minutes at the most before the committee.
“The select committee process needs to be a bit more robust,” he told the National Business Review.
“We need a bit more contestability of advice. The committee has an advisor but it’s a very big ask for one person to fill that role.”
It is one reason tax law changes fail too often to take account of the nature of New Zealand’s economy and businesses, he said.
“We’re a nation of small businesses yet our policy approach is to design policy along a one size fits all approach.
“Its not just tax, but tax is the biggest compliance burden small businesses face.”
Rob Hosking
Thu, 09 Aug 2012
Thu, 09 Aug 2012
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