TIB index based from the NZ Tax Information Bulletin - kwister.net
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03:11:52
29 Dec 2024
03:11:52
29 Dec 2024
TIB index based from the NZ Tax Information Bulletin - kwister.net
IS 13/03: INCOME TAX - DEDUCTIBILITY OF EXPENDITURE INCURRED IN BORROWING MONEY - SECTION DB 5
This item deals with the deductibility of borrowing related expenditure - that is, the transaction costs incurred in connection with obtaining borrowed funds ('borrowing-related expenditure'). This does not include interest, the deductibility of which is dealt with by specific provisions in the Act (in particular, ss DB 6-DB 10B).IS 13/03 - DEDUCTIBILITY OF INSURANCE PREMIUMS UNDER S DB 5 - TRANSITIONAL OPERATIONAL APPROACH
The Interpretation Statement IS 13/03 replaces the item 'Deductibility of mortgage repayment insurance taken out to obtain a business loan', Tax Information Bulletin Vol 6, No 9 (February 1995). It is now considered that that earlier item incorrectly states the law in concluding that mortgage repayment insurance would be deductible under the predecessor to s DB 5. Some taxpayers may have relied on the 1995 TIB item as supporting the deductibility of other insurance premiums (such as term life insurance premiums) under s DB 5.CORRECTION TO DEPRECIATION DETERMINATION PROV25
LTS Technical Standards issued a provisional depreciation determination Determination PROV25: Tax Depreciation Rates Provisional Determination Number PROV25 on 5 June 2013. It was published in the Tax Information Bulletin Vol 25, No 6 (July 2013), page 49. The determination covered a number of components that make up a 'Stabilised turf system'.QB 13/05: INCOME TAX – DEDUCTIBILITY OF A COMPANION'S TRAVEL EXPENSES
This Question We've Been Asked (QWBA) is about ss DA 1(1) and DA 2(2). It applies for the 2014 income year and subsequent income years. During a review of the Public Information Bulletin and Tax Information Bulletin series published before 1996, parts of the items 'Deduction for Wife's Expenses – Professional People Attending Overseas Conferences' Public Information Bulletin No 74, p 10 (June 1973) and 'Overseas Travel Expense Claims' Tax Information Bulletin Vol 7, No 2 (August 1995) were identified as no longer reflecting the Commissioner's interpretation of the law as it relates to the deductibility of a companion's travel expenses. The Public Information Bulletin review has now been completed, see 'Update on Public Information Bulletin review' Tax Information Bulletin Vol 25, No 10 (November 2013).COMMISSIONER'S APPLICATION FOR STRIKE-OUT SUCCESSFUL
The Commissioner of Inland Revenue's ('the Commissioner') application to strike out the remainder of the disputant's claim was granted. Impact of decision This decision confirms the principle that Maori sovereignty does not relieve taxpayers of their obligations under the Revenue Acts.RULE IN MANNIX UPHELD
The judgment upheld the rule established in the Court of Appeal decision Re GJ Mannix Ltd [1984] 1 NZLR 309, but waived security for costs where the director of the appellant company provided an undertaking to pay costs.RESOURCE CONSENT NOT A STAND-ALONE ASSET
The High Court found that resource consents acquired for the purpose of constructing electricity generation projects were not stand-alone assets separate from the projects to which they related.EMPLOYEE INDEMNITY FUND A TAX AVOIDANCE ARRANGEMENT
The arrangement did not meet the requirements of sections DC 5, DA 1 DB 6 or DB 7 of the Income Tax Act 2004. The arrangement was also a tax avoidance arrangement and the shortfall penalty for taking an abusive tax position was appropriately applied by the Commissioner of Inland Revenue ('the Commissioner'). Further, the requirements for a deduction under section DB 33 were not satisfied.PROPERTY RENTAL ACTIVITIES A BUSINESS AND NOT A PASSIVE INVESTMENT
The taxpayer and her husband were found to be carrying on a small, residential property rental business. The scale and volume of the operation, and the commitment of time, effort and finance involved were found to have been considerable and not merely passive investments as the taxpayer maintained. This finding resulted in a consequential re-calculation of their Working for Families Tax Credits ('WfFTC') entitlements.UNSUCCESSFUL CLAIM FOR RECOVERY OF A STATUTORY DEBT OWING UNDER SECTION 46 OF THE GOODS AND SERVICES TAX ACT, UNSUCCESSFUL APPLICATION FOR JUDICIAL REVIEW
The taxpayer was unsuccessful in its claim for a statutory debt owing as the Court held the Commissioner of Inland Revenue ('the Commissioner') had not breached her obligations under section 46 of the Goods and Services Tax Act 1985 ('GST Act'). The grounds for Judicial Review were rejected.PROCEEDINGS STRUCK OUT FOR FAILING TO COMPLY WITH UNLESS ORDERS
The proceedings were struck out by the court for failing to comply with unless orders. Impact of Decision While a strike-out is a step of last resort the Court has confirmed that there can be little point in making 'unless orders' if the courts fail to give effect to them.CASE TRANSFER AND CONSOLIDATION
The Commissioner of Inland Revenue ('the Commissioner') was successful in her application to have a number of cases originally filed in the Taxation Review Authority ('TRA') transferred to the High Court and consolidated with other High Court cases concerning the same dispute.