Latest news with #IRD
Scoop
18 hours ago
- Business
- Scoop
PM's Intervention To Kill Simon Watts' Ute Tax 2.0 Welcomed By Taxpayers
The Taxpayers' Union is welcoming the Prime Minister's intervention to rule out the Inland Revenue Department's proposal to apply Fringe Benefit Tax (FBT) to all utes worth $80,000 or more and other work vehicles — a plan directed by Climate Change and Revenue Minister Simon Watts. In response to media comment issued by the Prime Minister's Office last night, Taxpayers' Union Executive Director Jordan Williams said: 'Simon Watts was pushing a new Ute Tax, without his Cabinet colleagues or the public even knowing. Had it gone ahead, farmers and tradies would have been slammed with thousands of dollars in additional tax each year – not just once like Labour's Ute Tax, but every year.' 'The documents are crystal clear. IRD was instructed by Minister Watts to proceed with and consult with the tax industry on the implementation of a new FBT regime that would capture work vehicles, regardless of how they're actually used. This was a massive tax hike by stealth.' "As far as we can tell, the Revenue Minister didn't consult with any taxpayer, business, or farming groups, despite work having been done on this for nearly a year. Had he bothered to engage, the unfairness and political risk would have been obvious. That lapse saw the Government facing backlash because it was tax boffins who blew the whistle and it took everyone by surprise. Minister Watts should learn the lesson." 'Within hours of our campaign launch yesterday, the National Party was in damage control. Within six hours, the PM's team overruled Watts and confirmed the policy would not proceed.' The Taxpayers' Union yesterday revealed documents showing that IRD had been working on changes to remove the logbook exemption for work vehicles and impose FBT on the assumed private use of double cab utes. According to IRD's own estimates, the tax grab would have cost farmers, tradies and other ute owners $100 million per year. 'We give credit to the Prime Minister and his office for stepping in quickly and pulling the handbreak.' says Mr Williams. 'This is a clear win for taxpayers and proof that grassroots pressure works. We thank the thousands of Kiwis who used our online tool to email National MPs and demand the Ute Tax 2.0 be scrapped."
Otago Daily Times
3 days ago
- Business
- Otago Daily Times
North Otago organic vege grower in liquidation
A North Otago organic vegetable growing business, recently approached to appear on Country Calendar , has gone into voluntary liquidation owing more than $1million, while a subsidiary company owes more than $300,000. Organic Solutions, which traded as Oamaru Organics, is 53.45% owned by James Porteous — who is also the sole director — and Australian-based Lanson International Holdings Pty Ltd (46.55%). Touted as the largest organic market garden in the South Island, it sold vegetables both at a roadside stall at Totara and through the Otago Farmers Market. In a statement, Mr Porteous said the farm had "long struggled with chronic overstaffing", which significantly increased its financial burden and led to an accumulation of debt with the IRD. He said he stepped in to directly manage farm operations in August, reducing staff numbers from nine to one and introducing mechanisation. He said the farm became compliant with all ongoing tax obligations and began rapidly repaying historic tax arrears. Per-hectare revenue increased 39% and he proposed a "realistic" repayment plan, which was declined by the IRD. The company would continue to operate and supply customers to the best of its ability throughout the farm sale process, he said. Incorporated in 2014, it originally owned Thai restaurants around the South Island and bought the 23ha farm — one of its main suppliers — for $1.7m in 2019 to maintain supply. The deal was later found to have breached the Overseas Investment Act because Lanson International Holdings — whose majority shareholder was Mr Porteous' friend Marc Lanson — owned more than 46%. The rules stated Australians could not have more than a 25% share of any purchase of New Zealand land bigger than 5ha without gaining consent first. Organic Solutions was fined $20,000 and retrospective consent had to be sought. In his first report, liquidator Brenton Hunt, of Insolvency Matters, said the majority of the restaurants were closed due to the outcome of the Covid-19 restrictions. According to Mr Porteous, the business had struggled to be economic for some time. Inland Revenue payments had fallen behind and the IRD had begun recovery action. The last annual accounts completed for the company were in March 2022. Plant and equipment and motor vehicles were to be collected and sold and there was finance owing on vehicles, Mr Hunt said. The land and buildings were also to be listed and sold (first mortgage owing). Under preferential creditors, staff holiday pay was estimated at $10,000 and GST and PAYE were estimated at $900,000. Unsecured creditors were estimated to be owed $1m and the total estimated shortfall to all creditors was estimated at $1,279,500.
Business Standard
3 days ago
- Business
- Business Standard
Reserve Bank of India releases fresh set of draft regulations for Rupee Interest Rate Derivatives
The Reserve Bank of India (RBI) yesterday released a fresh set of draft regulations aimed at updating the rules for Rupee Interest Rate Derivatives (IRD), in a move designed to bring the regulatory framework in line with evolving market practices and increased participation from non-resident entities. A comprehensive review of the IRD Directions was undertaken, and the draft directions have been prepared to align it with the market and other related developments, the RBI said while releasing the Draft Master Direction, Reserve Bank of India (Rupee Interest Rate Derivatives) Directions, 2025. The RBI has invited feedback from banks, market participants, and other interested parties on the draft by 7 July 2025.
Business Standard
3 days ago
- Business
- Business Standard
RBI issues draft norms on rupee interest rate derivatives
The Reserve Bank of India issued draft regulations for Rupee Interest Rate Derivatives to align the extant regulatory framework with the market and other related developments. The extant regulatory framework for Rupee Interest Rate Derivatives (IRD) was issued in June 2019. Since then, there have been several new developments in the market, including the emergence of new products as well as the participation of non-residents in the market. Accordingly, a comprehensive review of the IRD Directions was undertaken, and the draft Directions have been prepared to align it with the market and other related developments, RBI stated. The reporting requirements under the Directions have also been rationalised to reduce compliance burden. Separately, a requirement for reporting of IRD transactions undertaken globally is proposed to be introduced with a view to enhancing transparency in the Rupee IRD market, the central bank noted.
Time of India
4 days ago
- Business
- Time of India
RBI's new step on Rupee Interest Rate Derivatives; issues draft norms
The Reserve Bank of India (RBI) on Monday released a fresh set of draft regulations aimed at updating the rules for Rupee Interest Rate Derivatives (IRD), in a move designed to bring the regulatory framework in line with evolving market practices and increased participation from non-resident entities. The current framework, last revised in June 2019, is being overhauled to reflect the changes in the financial landscape, including the introduction of new products and a rise in the non-residents involvement in the market. 'Accordingly, a comprehensive review of the IRD Directions was undertaken, and the draft directions have been prepared to align it with the market and other related developments,' the RBI said while releasing the Draft Master Direction, Reserve Bank of India (Rupee Interest Rate Derivatives) Directions, 2025. Interest Rate Derivatives refer to financial contracts whose value is based on one or more rupee interest rate, prices of rupee interest rate instruments, or rupee interest rate indices. Among the proposed changes, the draft allows non-residents to undertake IRD transactions through their central treasuries or group entities, where applicable. However, market-makers must ensure such entities are properly authorised to act on behalf of the end user. The draft also proposes to simplify existing reporting requirements, aiming to ease the compliance load on market participants. In addition, the apex bank plans to introduce a new mandate requiring the reporting of Rupee IRD transactions carried out globally, in an effort to improve transparency across the market. The RBI has invited feedback from banks, market participants, and other interested parties on the draft by 7 July 2025. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
