Accountants urge delay to capital gains tax

Finance Minister Grant Robertson said last week that the Government planned to respond to the report fully by April and intended to pass any legislation that stemmed from it ‘‘before the end of the parliamentary term’’, so any changes could take effect from April 2021.

But John Cuthbertson, the New Zealand tax leader for Chartered Accountants Australia and New Zealand (Caanz), said he had written to Robertson and Revenue Minister Stuart Nash urging them to consider ‘‘deferring the introduction date of a capital gains tax and to stage its application, starting with incomeproducing land’’.

Good tax legislation took time, Cuthbertson warned.

‘‘A capital gains tax will be a big change for taxpayers and it’s crucial that the necessary legislation is concise, efficient and clear – that is, it does the job.’’

Public consultation was extremely important to ensure any changes had support and were well designed, he said.

‘‘It’s these early consultation and design stages, where stakeholders and the public have the opportunity to share their views on a capital gains tax, that are at risk of being dangerously shortened to squeeze in this process before the election.

‘‘When you consider that Inland Revenue also needs time to draft discussion documents and legislation, the time frame is inadequate,’’ he said, adding that capital gains tax legislation would be complex and lengthy.

Robertson has been approached for comment.