30 Mar 2011

Tax move will give stricken firms certainty - institute

4:46 pm on 30 March 2011

The New Zealand Institute of Chartered Accountants says the Government's latest tax package will provide much-needed certainty for earthquake-stricken Canterbury firms.

The Government on Monday outlined a number of tax relief measures to make it easier for Christchurch residents and businesses to comply with tax obligations following the devastating quake on 22 February.

They include making certain welfare contributions tax-free, extending the redundancy tax credit and exempting gift-like payments to families who receive Working for Families tax credits as counting as income.

The changes also allow goods donated by firms to be tax-deductible, and give the Commissioner of Inland Revenue the flexibility to alter filing dates.

The institute's tax director, Craig Macalister, says the package gives some certainty to its 3000 members in Christchurch, who provide support and advice to about 90% of the small businesses in the region.