Most Read Contributor in New Zealand, September 2016
The Insolvency Practitioners Bill is now unlikely to come into
force until early 2013 due to the disruption caused by the
election. The Finance and Expenditure Select Committee's
report on the Taxation (Annual Rates, Returns Filing, and Remedial
Matters) Bill will also be delayed until next year.
Insolvency Practitioners Bill
The Ministry of Economic Development (MED) anticipates
that the Insolvency Practitioners Bill will be passed before the
middle of next year. This means that it will probably come
into effect in early 2013, nine months after it receives Royal
Chapman Tripp made a
submission on the Bill to the Commerce Select Committee and
feedback to MED on the Committee's report. MED is now
waiting for Cabinet to accept the Committee's recommended
changes before the Bill is returned to Parliament.
Taxation (Annual Rates, Returns Filing, and Remedial Matters)
This Bill proposes to amend section 19 of the Goods and
Services Act 1985 to prevent liquidators, receivers and voluntary
administrators from switching from the payments basis to the
invoice basis when accounting for GST. The amending provision
is clause 140.
The main objective of the proposed amendment is to prevent
insolvency practitioners from generating GST refunds to the
detriment of the tax base, by electing to account for GST on an
invoice basis where the insolvent taxpayer previously accounted on
a cash basis. Inland Revenue consulted with INSOL NZ before
the Bill was introduced to the House in late September. It is
now with the Finance and Expenditure Select Committee, which is
expected to begin hearing submissions early next year. At
this stage, we expect the Bill to come back from the Select
Committee review largely intact.
Where to next?
Chapman Tripp will continue to monitor the progress of both
The information in this article is for informative purposes
only and should not be relied on as legal advice. Please contact
Chapman Tripp for advice tailored to your situation.
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As a demonstration of India's combined political will, the much awaited and debated Insolvency and Bankruptcy Code, 2016 was passed by the Upper House of the Parliament on 11 May 2016 (shortly after being passed by the Lower House on 5 May 2016).
The Code envisages that the insolvency resolution processes will be conducted by insolvency professionals.
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