TIB index based from the NZ Tax Information Bulletin - kwister.net
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04:01:12
29 Dec 2024
04:01:12
29 Dec 2024
TIB index based from the NZ Tax Information Bulletin - kwister.net
Determination FDR 2019/01 - Use of fair dividend rate method for a type of attributing interest in a foreign investment fund (ISAM Systematic Trend - Class Q shares)
Class Q shares in ISAM Systematic Trend, to which this determination applies, are attributing interests in a foreign investment fund for New Zealand resident investors.Determination FDR 2019/02 - Use of fair dividend rate method for a type of attributing interest in a foreign investment fund (Russell Investments Multi Strategy Volatility Fund)
Shares in the Russell Investments Multi Strategy Volatility Fund ('Russell MSV Fund'), to which this determination applies, are attributing interests in a foreign investment fund ('FIF') for New Zealand resident investors.Determination EE001: Employee use of telecommunications tools and usage plans in their employment
Reimbursements or reimbursing allowances in relation to employee use of telecommunications tools and usage plans in their employment are taxable and subject to PAYE unless specifically exempt. Section CW 17 of the Income Tax Act 2007 allows reimbursements or reimbursing allowances to be exempt to the extent that an employee would be allowed a deduction if they incurred the expenditure and the employment limitation did not exist. Evidence is required to demonstrate a 'nexus' between incurring the expenditure and deriving income.Determination CFC 2019/05: Non-attributing active insurance CFC status (TOWER Insurance Limited)
A person has no attributed CFC income or loss from a CFC under sections CQ 2 and DN 2 of the Income Tax Act 2007 if the CFC is a non-attributing active CFC under section EX 21B of the Income Tax Act 2007 because the requirements of sections CQ 2(1)(h) and DN 2(1)(h) are not satisfied. Section EX 21B(3) of the Income Tax Act 2007 provides that a CFC is a non-attributing active CFC if it is an insurer that meets the requirements of section 91AAQ of the Tax Administration Act 1994 and the Commissioner makes a determination under that section. In the absence of such a determination, a CFC carrying on an insurance business is unlikely to be a nonattributing active CFC, because insurance income is otherwise treated as passive income and an attributable amount under section EX 20B(3) of the Income Tax Act 2007.Determination CFC 2019/04: Non-attributing active insurance CFC status (TOWER Insurance Limited)
A person has no attributed CFC income or loss from a CFC under sections CQ 2 and DN 2 of the Income Tax Act 2007 if the CFC is a non-attributing active CFC under section EX 21B of the Income Tax Act 2007 because the requirements of sections CQ 2(1)(h) and DN 2(1)(h) are not satisfied. Section EX 21B(3) of the Income Tax Act 2007 provides that a CFC is a non-attributing active CFC if it is an insurer that meets the requirements of section 91AAQ of the Tax Administration Act 1994 and the Commissioner makes a determination under that section. In the absence of such a determination, a CFC carrying on an insurance business is unlikely to be a nonattributing active CFC, because insurance income is otherwise treated as passive income and an attributable amount under section EX 20B(3) of the Income Tax Act 2007.Determination CFC 2019/03: Non-attributing active insurance CFC status (TOWER Insurance Limited)
A person has no attributed CFC income or loss from a CFC under sections CQ 2 and DN 2 of the Income Tax Act 2007 if the CFC is a non-attributing active CFC under section EX 21B of the Income Tax Act 2007 because the requirements of sections CQ 2(1)(h) and DN 2(1)(h) are not satisfied.Determination CFC 2019/02: Non-attributing active insurance CFC status (TOWER Insurance Limited)
A person has no attributed CFC income or loss from a CFC under sections CQ 2 and DN 2 of the Income Tax Act 2007 if the CFC is a non-attributing active CFC under section EX 21B of the Income Tax Act 2007 because the requirements of sections CQ 2(1)(h) and DN 2(1)(h) are not satisfied.Determination CFC 2019/01: Non-attributing active insurance CFC status (TOWER Insurance Limited)
A person has no attributed CFC income or loss from a CFC under sections CQ 2 and DN 2 of the Income Tax Act 2007 if the CFC is a non-attributing active CFC under section EX 21B of the Income Tax Act 2007 because the requirements of sections CQ 2(1)(h) and DN 2(1)(h) are not satisfied.BR Pub 19/05: Income tax - treatment of alteration to rights attached to shares under section CB 4
The Arrangement is where a shareholder holds shares in a company and the shares were acquired for the purpose of disposal. Subsequently, the rights attached to the shares are altered and the following apply: The shares are in a company registered under the Companies Act 1993; The alteration is not structured as a cancellation and issue of shares.BR Pub 19/06: Income tax - treatment of a disposal of shares with altered rights under section CB 4
The Arrangement is where a shareholder holds shares in a company and the shares were acquired for the purpose of disposal. Subsequently, the rights attached to the shares are altered and the following apply: The shares are in a company registered under the Companies Act 1993. The alteration is not structured as a cancellation and issue of shares. After the alteration, the shareholder disposes of some or all of their shares with altered rights.IS 19/04: Income tax - distributions from foreign trusts
This Interpretation Statement considers the income tax treatment of amounts of money or property transferred to New Zealand resident taxpayers by a person overseas, including through inheritance. It addresses how to determine whether the person who transfers the money or property is a trustee of a trust and when a taxpayer will have derived either beneficiary income or a taxable distribution from a foreign trust.QB 19/15: If property held in a trust is rented out by a beneficiary of the trust for short-stay accommodation, who should declare the income, and what deductions can be claimed?
This 'Question We've Been Asked' (QWBA) explains how the income tax rules apply if property held in a trust is rented out by a beneficiary of the trust for short-stay accommodation (eg, through Airbnb, Bookabach or Holiday Houses). The most common situation where it will be a beneficiary renting out a property held in trust is where the property is the beneficiary's family home.QB 19/16: If property held in a trust is rented out by the trustees for short-stay accommodation, who should declare the income, and what deductions can be claimed?
This 'Question We've Been Asked' (QWBA) explains how the income tax rules apply if property held in a trust is rented out by the trustees for shortstay accommodation (eg, through Airbnb, Bookabach or Holiday Houses). It will usually be the trustees renting out the property where the property is either a dedicated short-stay accommodation property, or a property that's sometimes rented out and sometimes used for other purposes (eg, it's used by beneficiaries of the trust).SPS 19/05: Options for relief from child support debt
This Statement sets out the Commissioner’s practice for providing relief when the immediate payment of an overdue child support or domestic maintenance obligation is not possible. The relief is provided in the form of an agreement to pay the debt in instalments; writing off penalties in certain situations; or in limited circumstances, writing off part or all the child support debt.OS 19/05: Employer-provided travel from home to a distant workplace - income tax (PAYE) and fringe benefit tax
The Commissioner is aware that there has been significant uncertainty regarding whether employer-provided travel1 from home to a distant workplace is subject to income tax, so PAYE must be deducted, or to fringe benefit tax (FBT). This Statement addresses whether this type of travel is subject to tax and outlines the approach to the tax treatment in this area which the Commissioner will, on a prospective basis, accept as correct. To reduce uncertainty and foster taxpayer compliance, the Commissioner has deliberately sought to take a pragmatic approach as far as this is possible within the law.High Court upholds TRA decision regarding Income Tax, GST and PAYE assessments and TAA ss 108 and 108A time bar
This is an appeal from a decision of the Taxation Review Authority ('TRA') regarding Mr Dowden's challenge to the Commissioner of Inland Revenue's ('Commissioner') PAYE, GST and INC assessments for tax periods between January 2004 and May 2012. These assessments concerned several businesses run by Mr Dowden, including Safeguard Security ('Safeguard'). Mr Dowden claimed to have transferred his interest in Safeguard to his former partner, Ms Jackson, in December 2003. Mr Dowden's case was that Ms Jackson was liable for tax relating to Safeguard between January 2004 and December 2011.Commissioner successful in donations GST case
This proceeding was a tax challenge in relation to reassessments made for six GST periods (from the tax year ended 31 March 2012 to the tax year ended 31 March 2015) to include payments that the disputant, CD Trust, has treated as not being subject to GST. The Taxation Review Authority ('the Authority') found for the Commissioner of Inland Revenue ('the Commissioner') and upheld the reassessments (during the preparation for the hearing the Commissioner's investigator identified that there were errors in the calculations underlying the assessments and recalculated what the correct amount of the assessments should be. The Taxation Review Authority varied the assessments accordingly pursuant to s 138P of the TAA.)Court of Appeal dismisses appeal of application for judicial review of child support assessment
The Court of Appeal dismissed P's appeal and accepted the Commissioner of Inland Revenue ('CIR') had acted correctly in changing P's child support entitlement to nil.