Published on 01 Jun 11
by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE
For the first time in New Zealand, this study reports the results of an investigation of tax practitioners' perception of small business tax law complexity in New Zealand. To determine New Zealand tax practitioners' perception of small business tax law complexity, an on-line survey was conducted in late 2009 and early 2010.
The New Zealand results show that tax practitioners perceive the five most complex items (in descending order of complexity) as overseas share investments and fair dividend rate (FDR) method; associated persons rule – Income tax; land regime; frequency of tax law changes and guidance from IRD; portfolio investment entity (PIE) and portfolio investor rate (PIR). The five least complex items (in ascending order of complexity) are progressive tax rates; depreciation- rates; work related/Home office deductions; carry forward losses; cash vs accrual accounting (income tax). The findings reveal that the only demographic variable affecting perceptions of small business tax law complexity is tax practitioners' percentage of working time spent for taxation.