TIB index based from the NZ Tax Information Bulletin - kwister.net
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03:10:00
29 Dec 2024
03:10:00
29 Dec 2024
TIB index based from the NZ Tax Information Bulletin - kwister.net
STUDENT LOAN SCHEME AMENDMENT ACT 2014
The Student Loan Scheme Amendment Bill (No 3) was introduced into Parliament on 19 August 2013, receiving its first reading on 27 August 2013, its second reading on 13 February 2014 and the third reading on 6 March 2014. It received Royal assent on 7 March 2014.STUDENT LOAN SCHEME AMENDMENT ACT 2014 - ARREST AT BORDER
There is a group of borrowers who persistently default on their student loan repayment obligations. The new legislation strengthens Inland Revenue's ability to deal with those individuals by making it an offence for overseas-based borrowers to continue avoiding repayments.STUDENT LOAN SCHEME AMENDMENT ACT 2014 - ADJUSTING THE OVERSEAS-BASED BORROWER REPAYMENT RULES
The legislation adjusts the overseas-based borrower repayment rules by introducing a fixed repayment obligation and two new repayment thresholds.STUDENT LOAN SCHEME AMENDMENT ACT 2014 - SHARING BORROWERS' CONTACT DETAILS WITH OTHER AGENCIES
The amendment extends the approved information-sharing agreement between Inland Revenue and the Department of Internal Affairs to include all borrowers, not just those who are in default.STUDENT LOAN SCHEME AMENDMENT ACT 2014 - DEFINITION OF 'INCOME' FOR STUDENT LOAN PURPOSES
This amendment aligns the definition of 'income' for student loan purposes with that used for Working for Families tax credits.STUDENT LOAN SCHEME AMENDMENT ACT 2014 - INCLUDING INCOME FROM EMPLOYMENT BENEFITS IN 'ADJUSTED NET INCOME'
The amendment aligns the definition of 'income' for student loan purposes with that used for Working for Families tax credits by requiring employees who receive certain noncash benefits to include them in their income calculations.STUDENT LOAN SCHEME AMENDMENT ACT 2014 - REDUCED LATE PAYMENT INTEREST
The amendment reduces late payment interest when a deduction order is made for a borrower in default.STUDENT LOAN SCHEME AMENDMENT ACT 2014 - MISCELLANEOUS TECHNICAL AMENDMENTS
The amendment reduces late payment interest when a deduction order is made for a borrower in default.TAXATION (ANNUAL RATES, FOREIGN SUPERANNUATION, AND REMEDIAL MATTERS) ACT 2014
The new legislation brings greater clarity and cohesion to the tax rules for New Zealand residents with interests in foreign superannuation schemes. It also introduces new rules to align the treatment of certain mineral miners with that of taxpayers more generally, and makes changes to a number of other tax rules to ensure they operate correctly.TAXATION OF FOREIGN SUPERANNUATION
Changes to the Income Tax Act 2007 have been made in relation to the taxation of interests in foreign superannuation schemes held by New Zealand residents. From 1 April 2014, a new set of rules replaces the previous rules applying to interests in, and amounts derived from, foreign superannuation schemes.LISTED INDUSTRIAL MINERAL MINING
The concessionary rules that previously applied to 'specified mineral' miners (now known as 'listed industrial minerals') have largely been repealed and replaced with rules that more closely align the tax treatment of these miners with that of taxpayers more generally, while accommodating some of the more unique aspects of the mineral mining industryOTHER POLICY MATTERS - ANNUAL INCOME TAX RATES FOR 2013-14 TAX YEAR
The annual income tax rates for the 2013-14 tax year are the rates set out in schedule 1 of the Income Tax Act 2007, and are the same that applied for the 2012-13 tax year.OTHER POLICY MATTERS - FURTHER CANTERBURY EARTHQUAKE RELATED AMENDMENTS
Amendments have been made to ensure existing Canterbury earthquake tax measures work as intended, in the context of the rebuilding activity now taking place in Canterbury.OTHER POLICY MATTERS - WORKING FOR FAMILIES TAX CREDITS
Amendments have been made to clarify and improve the Working for Families (WFF) tax credit provisions to ensure they operate as intended. The amendments are consistent with the policy behind previous amendments, including the broadening of the definition of 'family scheme income' to prevent people structuring their income to inflate their entitlements.OTHER POLICY MATTERS - BELOW MARKET INTEREST RATE LOANS UNDER IFRS
In some situations, the International Financial Reporting Standards (IFRS) accounting rules require a special treatment for interest-free and reduced-interest loans. This can involve the recognition of a one-off adjustment to the value of the loan and notional payments or receipts of interest.OTHER POLICY MATTERS - OVER-CREDITING OF IMPUTATION CREDITS IN EXCESS OF FIF TAXATION
Amendments have been made to the Income Tax Act 2007 to address a mismatch arising under the tax rules in relation to imputed dividends paid by Australian companies under the trans-Tasman imputation rules. This mismatch arose because imputation credits are calculated on the basis of the dividend paid but income tax arises only on the foreign investment fund (FIF) income.OTHER POLICY MATTERS - RECIPIENTS OF CHARITABLE OR OTHER PUBLIC BENEFIT GIFTS
The following organisations have been granted donee status from the 2014–15 income year:OTHER POLICY MATTERS - FINANCIAL REPORTING FOR COMPANIES AND OTHER TAXPAYERS
The Tax Administration Act 1994 has been amended as part of the Government's reform of the financial reporting regulatory framework for companies. The amendments to the Tax Administration Act 1994 imposes, unless otherwise exempted, a general requirement for companies to prepare financial reports that meet certain minimum requirements as prescribed by Order in CouncilOTHER POLICY MATTERS - BAD DEBT DEDUCTIONS FOR HOLDERS OF DEBT - COMPLIANCE CHANGE
The law has been amended to make it easier for taxpayers to take bad debt deductions in certain situations. These are when the taxpayer would ordinarily be entitled to them on the cessation of a financial arrangement, but for technical compliance issues.OTHER POLICY MATTERS - BAD DEBT DEDUCTIONS FOR HOLDERS OF DEBT - BASE MAINTENANCE CHANGE
The law has been amended to align the tax rules with the policy settings for taking bad debt deductions, by limiting bad debt deductions that can be taken by dealers and holders of debt to the economic cost of the debt.OTHER POLICY MATTERS - CHILD SUPPORT
The Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 makes technical changes to child support and also inserts provisions to delay most changes made by the Child Support Amendment Act 2013. There are also some consequential amendments to the Child Support Act 1991.REMEDIAL MATTERS - TAXATION RULES FOR INSURANCE BUSINESS
A range of technical and remedial changes have been made to the taxation rules for insurance business contained in the Income Tax Act 2007.REMEDIAL MATTERS - TIME BAR FOR AMENDMENT OF INCOME TAX ASSESSMENT
Section 108(1) of the Tax Administration Act 1994 has been amended to clarify that the time bar applies not only to the Commissioner amending an income tax assessment to increase the amount of tax payable, but also to the Commissioner reducing the amount of a net loss.REMEDIAL MATTERS - MIXED-USE ASSET RULES
Section DG 3(4)(c), which excludes certain assets from the mixed-use asset rules, has been repealed for the 2013-14 and later income years.REMEDIAL MATTERS - REBATES OF FEES PAID BY A FIF
Section EX 59(2) treats a person with an interest in a foreign investment fund (FIF) as having no income from the interest for a period other than FIF income. Section EX 59(2B) contains an exception where the amount derived by a person from an interest in a FIF is a rebate of fees and the person was allowed a deduction for the payment of the feesREMEDIAL MATTERS - CALCULATING AMOUNTS ATTRIBUTED TO INVESTORS IN A PIE
Section HM 36(2) contains a formula which a multi-rate PIE uses to calculate the PIE income (or loss) attributable to each investor. The formula in section HM 36(2) contains the item “percentage”, which is defined in section HM 36(3) (a).REWRITE ADVISORY PANEL REMEDIAL ITEMS - NOTICE TO LEAVE A CONSOLIDATED IMPUTATION GROUP
The Panel considered, and agreed with, a submission that the Income Tax Act 2007 contains an unintended change to the effective date that a company leaves a consolidated group of companies, if its notice to leave the consolidated group of companies is invalid.REWRITE ADVISORY PANEL REMEDIAL ITEMS - WITHHOLDING OF TAX FROM SCHEDULAR PAYMENTS
The amendment corrects the unintended change and ensures that the payer of a schedular payment to a GST registered person must withhold tax under the PAYE rules based on the GST-exclusive amount. This is because GST charged by and paid to a registered person is not treated as incomeREWRITE ADVISORY PANEL REMEDIAL ITEMS - RELIEF FROM OBLIGATION TO WITHHOLD RESIDENT WITHHOLDING TAX
The Panel considered, and agreed with, a submission that the outcome given by section RE 4 of the Income Tax Act 2007 differs from the outcome given by that section's corresponding provision in the Income Tax Act 2004 on the requirement to withhold resident withholding tax from payments of dividends.REWRITE ADVISORY PANEL REMEDIAL ITEMS - REFUND LIMITS FOR ICA COMPANIES
The Panel agreed with a submission that, for a company that has an extension of time to file its annual imputation credit account (ICA) return, the provisions of section RM 13(3) in the Income Tax Act 2007 do not correctly reflect the outcome given by the section's corresponding provision in the Income Tax Act 2004 (section MD 2(1A)).REWRITE ADVISORY PANEL REMEDIAL ITEMS - REWRITE MINOR MAINTENANCE ITEMS
Remedial changes have been made to the Income Tax Act 2007 for a number of minor drafting matters that have been brought to the attention of the Rewrite Advisory Panel. In general, these amendments consist of corrections of cross-references, spelling, punctuation, terminology and consistency of draftingTAX ADMINISTRATION (FINANCIAL STATEMENTS) ORDER 2014
From 1 April 2014, companies including 'look-through companies' that do not prepare financial reports to a higher authoritative accounting standard will be required under section 21B of the Tax Administration Act 1994, to prepare financial reports to a minimum standard as set out in the Tax Administration (Financial Statements) Order 2014 unless otherwise exempted from doing so.PRODUCT RULING BR PRD 14/01: RESTAURANT BRANDS LIMITED
The Arrangement is a recurring arrangement in terms of section 91E(1) of the Tax Administration Act 1994 involving the engagement of delivery drivers by Restaurant Brands Limited ('RBL') pursuant to the Delivery Driver Contract, and in accordance with information in the Delivery Driver Handbook, and completion of Certification S5, and the standard practice information previously provided to Inland Revenue in the ruling application (dated 10 October 2007) (collectively referred to as 'the relevant documents'), to deliver RBL products to RBL customers.PRODUCT RULING BR PRD 14/02: GENESIS ENERGY LIMITED INITIAL PUBLIC OFFERING
This Ruling has been applied for by the Minister of State Owned Enterprises and the Minister of Finance, in their capacity as holders of all of the issued shares in Genesis Energy Limited ('Genesis') on behalf of Her Majesty the Queen in Right of New Zealand ('the Crown').SPECIAL DETERMINATION S25: VALUATION OF SHARES ISSUED BY BANK AND HOLDCO FOLLOWING A NON-VIABILITY TRIGGER EVENT
This determination relates to a funding transaction involving the issue of Notes by the Bank to the public pursuant to a Deed Poll. The Notes will contain an exchange mechanism, in order to allow them to be recognised as Tier 2 capital for the purposes of the Reserve Bank of New Zealand and Australian Prudential Regulation Authority frameworks relating to the capital adequacy of banksDETERMINATION FDR 2014/02: USE OF FAIR DIVIDEND RATE METHOD FOR A TYPE OF ATTRIBUTING INTEREST IN A FOREIGN INVESTMENT FUND
Shares in the Civic Capital Currency Offshore Fund Limited ('the Civic Capital Fund'), to which this determination applies, are attributing interests in a foreign investment fund (FIF) for certain portfolio investment entity funds ('the NZFM Funds') managed by New Zealand Funds Management Limited.FOREIGN CURRENCY AMOUNTS – CONVERSION TO NEW ZEALAND DOLLARS (FOR THE 12 MONTHS ENDING 31 MARCH 2014)
This article provides the exchange rates acceptable to Inland Revenue for converting foreign currency amounts to New Zealand dollars for the 12 months ending 31 March 2014.INDEMNITY COSTS AWARDED TO COMMISSIONER
The Commissioner of Inland Revenue ('the Commissioner') was awarded indemnity costs on the basis that the taxpayer's claim fell within the 'hopeless case' category and the Commissioner should not have been put to the expense of defending such a case.