Racing Minister Nathan Guy and Revenue Minister Todd McClay have confirmed that Inland Revenue officials will work with the New Zealand Thoroughbred Breeders’ Association on a number of tax issues raised by the industry.
The issues cover questions the NZTBA has over the application of tax rules for the industry and are expected to be dealt with as part of the normal consultative process between the private sector and tax officials.
“We are confident that the majority of the issues can be worked through, providing a positive result and greater certainty for what is an important industry to New Zealand,” Mr McClay says.
“I am advised that talks between the industry and IRD officials will begin soon.”
Mr Guy says that thoroughbred breeding is a major business in New Zealand, with an estimated export value of over $130 million.
“The feedback I’ve received from the industry is that they would appreciate greater clarity over the interpretation of a variety of tax issues, and I’m pleased that the NZTBA is engaging constructively with IRD on these issues.”
“I’m hopeful that this process will lead to some positive outcomes for the industry,” Mr Guy says.