The Taxation Principles Reporting Bill proposes a new framework for measuring and reporting on the tax system, requiring annual reports from the Commissioner of Inland Revenue. It also grants powers to adjust methodologies and request additional taxpayer data to support these reports.
The Taxpayers’ Union has called for the Bill to be withdrawn, opposing its untested principles and the broad powers given to Inland Revenue to change rules without proper oversight. Instead, we advocate for a simpler framework based on core principles like simplicity, transparency, neutrality, and stability.
The Bill risks increasing compliance costs, introducing subjective and unclear standards, and weakening democratic accountability in tax policy. A more transparent and stable approach is essential to maintain trust and ensure tax rules are fair, predictable, and grounded in sound policy.
