TIB index based from the NZ Tax Information Bulletin - kwister.net
Current Time (NZ)
03:12:09
29 Dec 2024
03:12:09
29 Dec 2024
TIB index based from the NZ Tax Information Bulletin - kwister.net
Life reinsurance
There is an amendment to section DR 3 of the Income Tax Act 2007 to ensure that no deduction for the reinsurance of a life insurer's policies is available if the life re insurer's premium income on that policy is not taxable in New Zealand. The amendment is to ensure that the New Zealand resident insurer is denied a deduction for the premium under section DR 3 when the life re insurer's business operates out of Canada, Japan, Russia, or Singapore. The life insurer will no longer benefit from the more favorable tax treatment received by the life re insurer compared with those life re insurers operating in New Zealand or other countries.BEPS - Administrative measures - DEFINITION OF LARGE MULTINATIONAL GROUP
The new legislation introduces the term 'large multinational group', which is relevant as Inland Revenue's increased powers to assess tax or collect information only apply to members of large multinational groups.BEPS - Administrative measures - REQUESTING INFORMATION FROM LARGE MULTINATIONAL GROUPS
The new legislation amends the Tax Administration Act 1994 to provide the Commissioner of Inland Revenue with additional powers to request information from large multinational groups in order to assist a tax investigation of the relevant multinational.BEPS - Administrative measures - Civil penalty for failure to provide the requested information
New section 139AB provides the Commissioner of Inland Revenue with the ability to impose a civil penalty of up to $100,000 on large multinational groups which fail to comply with a section 17(1CB) request for information or documents.BEPS - Administrative measures - COLLECTING UNPAID TAX FROM LARGE MULTINATIONAL GROUPS
Inland Revenue has strong powers to collect revenue from persons who are residents of New Zealand or who have a physical presence here. However, it can be difficult for Inland Revenue to collect tax from non-resident companies that have no physical presence in New Zealand, including in cases where they are a member of a large multinational group which does have a subsidiary or permanent establishment in New Zealand.BEPS - Administrative measures - COUNTRY-BY-COUNTRY REPORTS
One of the OECD's BEPS recommendations was to require large multinational groups (those with annual consolidated group revenue of EUR €750m or more in the previous financial year) to provide a Country-by-Country report which contains certain high-level information on the groups' global activities to tax authorities who would then exchange this information with each otherBEPS - Transfer pricing rules
Transfer pricing rules guard against multinationals using related-party arrangements to shift profits offshore by requiring the profits from these arrangements to be determined using the arm's length conditions, including price, which unrelated parties would agree to use.BEPS - Permanent establishment anti-avoidance rules
The Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 inserts a new anti-avoidance rule into the Income Tax Act for large multinationals (with over €750m of consolidated global turnover) with a structure intended to avoid having a permanent establishment (PE) in New Zealand.BEPS - Hybrid and mismatch rules
Hybrid and branch mismatch arrangements are cross-border arrangements that exploit differences in the tax treatment of an instrument, entity or branch under the laws of two or more countries to eliminate, defer or reduce income tax. This is often referred to as double non-taxation.BEPS - Interest limitation rules
New rules have been introduced requiring related-party loans between a non-resident lender and a New Zealand-resident borrower to be priced using a restricted transfer pricing approach. Under these rules, specific rules and parameters are applied to certain inbound related-party loans to:Tax Administration (Direct Credit of Income Tax and Gaming Machine Duty Refunds) Order 2019
An Order in Council has been made to include income tax and gaming machine duty as tax types refundable by direct credit under section 184A of the Tax Administration Act 1994 (the TAA). The provisions in sections 184A and 184B require tax refunds to be paid via direct credit to a bank account nominated by the taxpayer and were introduced to benefit taxpayers by eliminating time delays associated with the postal system and costs related to cheques.CRS reportable jurisdictions amendment regulations
Reportable jurisdictions are relevant to the Common Reporting Standard (CRS rules) which was enacted in New Zealand in 2017 as part of New Zealand's implementation of the G20/OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters, or AEOI. Reportable jurisdictions are territories to which Inland Revenue (IRD) will provide certain information on non-residents that is reported to IRD by financial institutions in accordance with the CRS rules.Product Ruling - BR Prd 19/01
The Developer (and its associated companies) are, or will be, the registered proprietors of land in Milldale, Wainui, Auckland, which will be subdivided to deliver approximately 3,860 new build houses, apartments and commercial premises. As part of the development of that land, the Developer is responsible for building bulk infrastructure (including storm water, drinking water, waste water and roading) (Bulk Infrastructure). The Bulk Infrastructure will be owned, operated and maintained by the local Council or other appropriate entity.IS 19/01: Income tax - application of schedular payment rules to non-resident directors' fees
This Interpretation Statement provides further guidance on directors' fees by explaining when you must withhold tax from directors' fees paid to non-residents, and how much you must withhold if you are required to do so.SPS 19/01: Tax payments - when received in time
This standard practice statement (this Statement) sets out the Inland Revenue's practice for accepting tax payments as having been made in time. With the influence of technology there has been a significant shift in practice to use digital methods for making tax payments. The Commissioner encourages customers to use direct banking facilities when they make tax payments (or when refunds are issued).Commissioner's Operational Position on IS 19/01 - Income Tax - How schedular payment rules apply to non-resident directors' fees
The Interpretation Statement gives guidance on when tax must be withheld from directors' fees paid to non-residents, and how much tax must be withheld when required to do so.2019 International tax disclosure exemption ITR30
Section 61 of the Tax Administration Act 1994 ('TAA') requires taxpayers to disclose interests in foreign entities. Section 61(1) of the TAA states that a person who has a control or income interest in a foreign company or an attributing interest in a foreign investment fund ('FIF') at any time during the income year must disclose the interest held. In the case of partnerships, disclosure needs to be made by the individual partners in the partnership. The partnership itself is not required to disclose.Special Determination S61: Optional Convertible Notes with Discretionary Interest Payments
This determination relates to optional convertible notes (Convertible Notes) issued by the Issuer to the Holders. The Holders are different legal entities to the shareholders of the Issuer. However, they are ultimately owned and controlled by the same persons. This determination only applies to the Issuer as the Note Holders are not New Zealand residents and do not have a fixed establishment in New Zealand for the purposes of ss EW 9 and EW 10.Special Determination S62: Spreading method to be applied by Landowners making Infrastructure Payments to fund bulk infrastructure under a Final Encumbrance
This Determination relates to an arrangement involving an encumbrance (the Final Encumbrance) under which a landowner (the Landowner) is required to make payments to Milldale Infrastructure LP (the LP) over a fixed period. The arrangement is described in more detail in the Product Ruling.Participating jurisdictions for the CRS applied standard
New Zealand's list of participating jurisdictions for the purposes of the Common Reporting Standard (CRS rules) and requirements under Part 11B of the Tax Administration Act 1994 will be amended with effect from 1 April 2019 as follows:Taxation Review Authority confirms amounts received not loan repayments, but deemed dividends
During the 2010 to 2014 tax years (disputed period), the disputant was a shareholder of or was associated with a shareholder of 'GPBL', 'STL' and 'KMRL' (together referred to as 'the Companies'). The disputant received various payments from the Companies during the disputed period and had personal expenditure paid on her behalf by STL and KMRL. The disputant filed nil returns for each of the tax years in the disputed period. The Commissioner of Inland Revenue ('the Commissioner') reassessed the disputant in respect of the amounts received from the Companies as wages and dividends or alternatively as income under ordinary concepts.High Court clarifies when payments made in support of overseas mission services qualify for tax credits
As part of its overseas mission programme, the Church of Jesus Christ of Latter-Day Saints ('the Church') expects applicants to commit to raising a 'standard amount' to go towards supporting the Church's missionary work. The Trust Board of the Church of Jesus Christ of Latter-Day Saints ('the Trust') is the Church's New Zealand-based entity which receives the 'standard amount' payments for New Zealand resident applications and provides the donors (including the plaintiff in the second proceeding, Mr Coward) with deduction receipts.High Court clarifies the meaning of 'year' for calculating 'ongoing daily care' for the Child Support Act 1991
When there is change to ongoing daily care of a child which falls across two child support years (as defined) the calculation of the percentage change to ongoing daily care is not split into two separate child support years.Taxation Review Authority considers whether it has the power to approve publication of a taxpayer's affairs on application by the taxpayer
The Taxation Review Authority ('the TRA') had to consider whether allowing a journalist to attend the hearing of a taxpayer's dispute was permissible given the privacy restrictions on that jurisdiction. Additionally, the TRA had to consider whether anything in the Taxation Review Authorities Act 1994 ('the Act') or the Taxation Review Authorities Regulations 1998 ('the Regulations') allowed the TRA the power to grant approval to publish information provided to the director of the disputant during the course of the TRA proceedings.