Entities benefit from write-off

Wednesday February 14, 2018 Written by Published in Local
Finance minister Mark Brown at Parliament on Monday. 18021305 Finance minister Mark Brown at Parliament on Monday. 18021305

Finance minister Mark Brown on Monday confirmed the massive tax write-off as part of the ongoing tax amnesty will ease the burden off 1433 entities.

 

Brown earlier this month announced that entities owing tax to the government before January 1, 2010 would not have to pay their debts.

The amount that will be waived as part of this latest development is about $19 million, Brown told parliament earlier this week. He was responding to Opposition MP James Beer, who asked which entities would benefit from the controversial move.

Brown said the write-off would apply to all taxpayers and not just to Value Added Tax.

“The additional penalties accrued are $13.8m and core tax is $5.1m and this affects 1433 entities including companies, individuals, states, charitable organisations and societies, national sports teams and other tax entities,” Brown said.

“And in looking at this date where we drew the line, it was apparent and clear to the government that this was the date that will have the most impact in removing and waiving penalties, whilst at the same time minimising the core tax that will be affected.

“When the government looked at it, we looked at it as a way to help Cook Islanders get this burden off their back. This is what a good government does.”

Beer raised a point of order by requesting Brown to stick to the question asked.

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