TIB index based from the NZ Tax Information Bulletin - kwister.net
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04:00:03
29 Dec 2024
04:00:03
29 Dec 2024
TIB index based from the NZ Tax Information Bulletin - kwister.net
BR Prd 17/01: Kiwibank Limited
Kiwibank offers its customers the 'Kiwibank Offset Mortgage' (the Product). The Product allows a customer to elect that interest payable by them on a loan made by Kiwibank be calculated by offsetting the balance of the loan against the aggregate credit balances of certain nominated transaction and savings and investments bank accounts held either by that customer or by certain other eligible person(s). Interest is payable on the net notional balance of these combined accounts. The Product was previously only available only to individual customers. It will now be made available to business customers, including companies and trusts.Public Ruling - BR Pub 17/04 and 17/05: 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.Public Ruling BR PUB 17/05: 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.Commentary on Public Ruling BR Pub 17/04 and BR Pub 17/05
This commentary is not a legally binding statement. The commentary is intended to help readers understand and apply the conclusions reached in Public Rulings BR Pub 17/04 and BR Pub 17/05 ('the Rulings').Public Ruling - BR Pub 17/06: Fringe benefit tax - charitable and other donee organisations and fringe benefit tax
This Ruling replaces 'Public Ruling BR Pub 09/03: Charitable Organisations and Fringe Benefit Tax', Tax Information Bulletin Vol 21, No 6 (August 2009): 12, which has been withdrawn from 30 June 2017. Under s 91DE of the Tax Administration Act 1994, BR Pub 09/03 will continue to bind the Commissioner for arrangements entered into before 1 July 2017 for a further three years. This Ruling will apply to arrangements entered into on or after 1 July 2017.Commentary on Public Ruling BR Pub 17/06
This commentary is not a legally binding statement. The commentary is intended to help readers understand and apply the conclusions reached in Public Ruling BR Pub 17/06 (the Ruling).Notice of Withdrawal of a Public Ruling - BR Pub 09/03
Public Ruling BR Pub 09/03 'Charitable Organisations and Fringe Benefit Tax' applies for an indefinite period beginning on the first day of the 2008/09 income yearTAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017
The new Act sets the annual rates for income tax for the 2016-17 tax year and makes changes to improve, strengthen and update the rules for closely held companies, non-resident withholding tax and the approved issuer levy, and the goods and services tax rules. It also contains a large number of technical changes to ensure the tax rules work as intendedTAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: CLOSELY HELD COMPANIES
The new Act sets the annual rates for income tax for the 2016-17 tax year and makes changes to improve, strengthen and update the rules for closely held companies, non-resident withholding tax and the approved issuer levy, and the goods and services tax rules. It also contains a large number of technical changes to ensure the tax rules work as intendedTAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: NRWT: RELATED PARTY AND BRANCH LENDING
The Taxation (Annual Rates for 201617, Closely Held Companies, and Remedial Matters) Act 2017 introduced a number of changes to the taxation of interest payments to non-residentsTAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: GST and capital raising costs
The Taxation (Annual Rates for 201617, Closely Held Companies, and Remedial Matters) Act 2017 introduced a number of changes to the taxation of interest payments to non-residentsTAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Goods and services connected with exported boats and aircraft
The Goods and Services Tax Act 1985 has been amended to align the GST treatment of goods and services provided in relation to newly purchased boats and aircraft that are to be exported under their own power, with the treatment provided for temporarily imported boats or aircraft.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Adjustments and exported goods
The Goods and Services Tax Act 1985 has been amended so that non-residents who claim input tax deductions for GST charged on the importation of goods are no longer required to make adjustments to the claimed deductions.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Grouping limited partnerships
An amendment to the Goods and Services Tax Act 1985 ensures that limited partnerships can apply the grouping rules and file a joint return with other registered persons who share common control.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Value of entertainment expenses
An amendment to the Goods and Services Tax Act 1985 makes it clear that the amount of a denied income tax deduction for entertainment expenses required to be included in a registered persons GST return is exclusive of GST.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Racing and prizes
New section 5(11CB) treats a prize received by the owner of a horse or greyhound as consideration for a supply of services provided to the racing club or racing code. The new section applies when a registered person is carrying on the racing in the course of a taxable activity. As such, it is intended to codify the industry practice of treating winnings paid to registered owners of a horse or greyhound as consideration for a taxable supply. It is not intended to change any interpretation of what constitutes a taxable activityTAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Bodies corporate
The application period of a 'savings' provision introduced by the Taxation (Annual Rates for 2015-16, Research and Development, and Remedial Matters) Act 2016 has been extended. The provision preserved tax positions taken by GST registered members of an unregistered body corporate to claim deductions for GST incurred by the body corporateTAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Secondhand goods and variation of price
An amendment ensures that the rules dealing with changes in the consideration for a supply of secondhand goods apply correctly to deductions claimed by a GST-registered purchaser of secondhand goods.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Alignment of the time period to repay overpaid GST
An amendment allows the Commissioner to refund an amount of overpaid tax within a four-year period following the expiry of the original four-year period in which overpaid tax must be refunded.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Time of supply when consideration is unknown
An amendment provides a method for suppliers to account for GST on supplies of goods and services when the consideration payable (and therefore the amount of GST that must be accounted for) is not known at the time of supply.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Agents acting for purchasers
Amendments allow agents and principals to opt out of the agency rules for a supply made to the principal. Opting out enables the parties to account for GST as though the supply were two supplies: from the supplier to the agent, and from the agent to the principal (purchaser)TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Sales under a security interest where an incorrect statement is provided
An amendment clarifies that a person who has granted a security over a good, which is sold by the security holder in satisfaction of a debt, and provides an incorrect statement to the security holder, is liable to return GST on the supply themselves.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Deemed supply of financial products upon deregistration
An amendment ensures that financial products are treated in the same way upon deregistration as if the person actually disposed of them, and are not inadvertently taxed.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Financial services and options
The amendment ensures that the transfer of ownership of a financial option or payment of an amount arising under a financial option is also treated as a financial service.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: No apportionment for de minimis exempt use
A registered person may claim deductions for all input tax they incur, subject to the need to apportion the deduction to reflect non-taxable (exempt and private) use. Section 20(3D) provides an exception to this when a person makes incidental exempt supplies in carrying on their taxable activity. This has been a longstanding approach, and was previously embedded in section 21(4) before the new apportionment rules came into force on 1 April 2011.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Output tax by purchaser who acquires zero-rated land
When a person acquires land that is zero-rated under section 11(1)(mb), they are required under section 20(3J)(a)(iii) to account for output tax to the extent that the land is not used for making taxable supplies. This ensures the same result as if they instead incurred GST on the acquisition of the land and apportioned the deduction.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: GST group filing - liability of departing member for unpaid tax
Section 55(7)(g) provides that when a person is a member of a GST-registered group, they are jointly and severally liable for tax payable by the representative member of the group. Section 57(3) performs a similar function for members of an unincorporated body.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Kaikoura earthquake relief measures
The amendments provide tax relief on depreciation clawback arising from insurance proceeds when a business replaces assets destroyed, demolished or lost as a result of the Kaikoura earthquake and its aftershocks. These provisions provide depreciation roll-over relief on substantially similar terms to that made available to businesses affected by the Canterbury earthquakes. The additional complexity with the roll-over relief for assets affected by the Kaikoura earthquake comes from having two earthquake affected zones (the top of the South Island and the bottom of the North Island).TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Debt remission and associated amendments
The core amendment relies on an economic income analysis to determine whether a debt remission does not cause an increase in wealth and therefore should not be taxed, and focuses on situations when, if there was a debt capitalisation, there would be no real change in ownership (that is, no real increase in wealth). The amendments apply to debtors who are companies, lookthrough companies and partnerships. Other associated amendments apply to the bad debt rules and to guarantees.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Loss grouping and imputation credits
Amendments allow companies that are commonly owned (at least 66 percent common voting interests) but not wholly owned (100 percent) to transfer imputation credits as part of loss grouping. Imputation credits can be transferred to the company that receives the benefit of the loss grouping (the profit company) and be sourced from either the company that provides the benefit of the loss grouping (the loss company) or another company in the group that will receive the benefit of a dividend paid by the profit company (the imputation source company).TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Remission income, tax losses and insolvent individuals
Remedial amendments to section MB 14 of the Income Tax Act 2007 and section 14B of the Student Loan Scheme Act 2011 ensure that earlier reforms to the treatment of tax losses of a person discharged from bankruptcy are consistent with the objectives of Working for Families and the Student Loan Scheme.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Aircraft overhaul expenses: deductibility and timing
The amendments provide new timing rules that spread deductions for aircraft engine overhaul expenditure over the period between aircraft engine overhauls.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Clarification of empowering provision for New Zealands double tax agreements
The Income Tax Act 2007 has been amended to clarify that the empowering provision for New Zealand's double tax agreements (DTAs) does not prevent the general anti-avoidance rule contained in the Income Tax Act 2007 from applying to a tax advantage arising under a DTA.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Overseas donee status
The following charities have been granted donee status from the 2016-17 income year:TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Land tainting and council-controlled organisations
Amendments have been made to the Income Tax Act 2007 to exclude entities controlled by local authorities from the land tainting rules. This exclusion does not apply when an entity controlled by a local authority is associated with a property development entity that operates outside the council group.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Loss offsets to mineral miners
An amendment to the Income Tax Act 2007 allows a company to make its tax loss available to a mineral miner that is part of the same group. This achieves a similar outcome to that available to mining holding companies before the repeal of those provisions in 2014.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Attribution of mineral mining losses to shareholders of loss attributing qualifying companies
An amendment to the Income Tax Act 2007 clarifies that a mineral miner that was a loss attributing qualifying company (LAQC) could attribute a net mining loss to its shareholders.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Time bar and ancillary taxes and AIL
An amendment clarifies that the time bar applies to ancillary taxes and the approved issuer levy (AIL), when a taxpayer has filed a relevant return.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Annual setting of income tax rates
The annual income tax rates for the 2016-17 tax year are the rates specified in schedule 1 of the Income Tax Act 2007.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: WORKING FOR FAMILIES TAX CREDITS - Parental tax credit abatement formula
Section MD 2(3) and (4) has been amended to ensure parental tax credit (PTC) recipients who have a parental entitlement period that starts at the end of one tax year and extends into the beginning of the next tax year have the correct amount of abatement applied to their credit. The amendment also applies to PTC recipients whose Working for Families tax credit (WFFTC) entitlement changes during their entitlement periodTAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: WORKING FOR FAMILIES TAX CREDITS - Parental tax credit entitlement periods
Sections MD 2(3), MD 2(4), MD 12(1) and MD 12(3)(b) have been amended to make it clear that a separate amount of Parental Tax Credit (PTC) and a corresponding amount of abatement apply to each entitlement period within a parental entitlement period.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: WORKING FOR FAMILIES TAX CREDITS - Parental tax credit 'cross-year' situations
Section MD 1(3)(c) has been amended to clarify that Parental Tax Credits (PTC) recipients who have a parental entitlement period that starts at the end of one tax year and extends into the beginning of the next tax year may receive their credit as a lump sum in an end-of-year assessment for the first tax year (a cross-year situation).TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: WORKING FOR FAMILIES TAX CREDITS - Minor parental tax credit clarifications
The amendment to section MD 2(3) replaces sections MD 1 and MD 16 with sections MD 1(3)(d)(i) and MD 16(3) (a), to make it clear when the Parent Tax Credit (PTC) abatement formula should be used.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Fringe benefit vouchers and social policy income
Section MB 7B of the Income Tax Act 2007 and clause 12A of schedule 3 of the Student Loan Scheme Act 2011 have been amended to enable employees, for social policy purposes, to apply the maximum fringe benefit tax (FBT) rate on their shortterm charge facilities provided by their employer, if the employer does not provide the correct rate.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Tax pooling provisions
These amendments ensure that the tax pooling rules work as intended. The amendments allow an imputation credit date when purchased tax pooling funds are used to meet an increased amount of tax that is not income tax. The amendments also prevent the double counting of an imputation debit when new shareholders of the company or group sell the companys or group's own deposited tax pooling funds to another pool user.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Taxable bonus issues and available subscribed capital
The amendment to section CD 43(7) of the Income Tax Act 2007 clarifies that imputation credits attached to a taxable bonus issue are not included in available subscribed capital (ASC).TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Exceptions to the requirement to use the same calculation method for the same FIF
The amendment resolves uncertainty over which calculation method should be applied when a person holds more than one interest in the same foreign investment fund (FIF).TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Rationalisation of foreign tax credits provisions
The provisions amend or repeal a number of provisions in subpart LJ, and also amend section YA 1 of the Income Tax Act 2007, to rationalise the foreign tax credit provisions.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Repeal of redundant foreign dividend payment provisions
The provisions amend or repeal a large number of redundant foreign dividend payment (FDP) provisions from the Income Tax Act 2007 and Tax Administration Act 1994 that still referred, or related, to FDP. FDP was charged on foreign dividends derived by a New Zealand resident company, but ceased to be charged for income years beginning on or after 1 July 2009. The FDP charging provisions in subpart RG were repealed as part of the wider changes to the international tax rules in the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Consequential repeals resulting from amalgamation of information sharing provisions
Provisions enabling Inland Revenue to share information with the Ministry of Social Development to help with the administration of benefit, student loan and child support entitlements and obligations under the Tax Administration Act, Student Loan Scheme Act, and the Child Support Act, are to be repealed with effect from a date to be determined by Order in Council.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Remedial changes to the 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.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Recharacterisation of shareholder's base company repurchasing shares
A share repurchase occurs when a company purchases (repurchases) its own shares from current shareholders. Monies paid to a shareholder under a share repurchase may be taxed as a dividend under the Income Tax Act.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Taxable bonus issues cost base
A remedial change to section ED 1 of the Income Tax Act now provides taxpayers with a cost base for taxable bonus issues.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Reduction of further income tax: double counting of debit balance
The amendment corrects a drafting error in section OB 67(2) arising in rewriting the Income Tax Act. The amendment ensures that, when a debit balance of an imputation credit account (ICA) of an ICA company is carried forward from one year to the next, that carried forward debit balance is not again subject to further income tax.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Basic tax rate when changing balance dates
The amendment ensures that a taxpayer is taxed at the correct basic rate for the tax year that corresponds to the income year in which the taxpayer changes their balance date for income tax purposes.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Transport in vehicle other than a motor vehicle
The amendments correct an unintended legislative change arising in the rewrite of income tax legislation to ensure that transport of an employee in a heavy goods vehicle is not a fringe benefitTAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Livestock and the definition of trading stock
The amendment to the definition of 'trading stock' corrects an unintended legislative change arising in the rewrite of income tax legislation and restores the law relating to the taxation of livestock disposed of as part of the sale of a business.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Pre-amalgamation losses
The amendment corrects an unintended legislative change arising in the rewrite of this provision, to ensure that a loss balance of an amalgamated company is carried forward past the date of amalgamation.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Loss offsets - CIR ability to allow late election
The proposed amendment corrects an unintended change in legislation arising from the rewriting the Income Tax Act to ensure that the Commissioner may accept an election by a company to use the loss grouping rules after the last day for filing a return of income (a late election)TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Limit on a tax refund for an imputation credit account company
An amendment to section RM 13(3) clarifies which tax year is relevant in determining the limit on the amount of a tax refund due to an imputation credit account company (ICA company), which has not filed its return of income for the most recently ended tax year under an extension of time arrangement.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Carrying back foreign investor tax credits
The amendment corrects an unintended legislative change to the foreign investor tax credits rules arising in rewriting the Income Tax Act.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Land sales: duplicate provisions
The amendment repeals section CB 6(3) as it duplicates the outcome given by section CB 23B.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Non-resident passive income and definition of non-filing taxpayer
The amendments improve the clarity of the relationship between sections RB 2, RF 2 and the definition of 'non-filing taxpayer' in the Income Tax Act 2007 following a cross-reference error in rewriting the non-resident withholding tax rules. The amendment corrects this unintended legislative change and eliminates some overlap, which ensures the provisions work as intended.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Bad debt deductions for holders of debt - base maintenance change
Changes introduced by the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 were intended 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. These changes were discussed in two editions of the Tax Information Bulletin, (Vol. 26 No. 4, May 2014 and Vol. 28 No. 3, April 2016).TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: R&D loss tax credit remedials
The amendments create ordering rules for when multiple loss reinstatement events occur in a single income year. The intention is to simplify the payment of R&D repayment tax and protect the tax base. The changes also clarify that, when a loss of shareholder continuity has resulted from equity disposals and transfers, all equity disposals and transfers from the year a credit was first taken to the current year should be included in calculating R&D repayment tax.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Exempt income from personal services - the 92-day rule
The amendment to section CW 19 aligns the provision's count test with other count tests by measuring the days of personal presence within any 12-month period. The amendment provides that a non-resident deriving income from personal services carried out in New Zealand is not taxable on that personal services income if that visit does not last for more than 92 days in any 12-month period.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Tax status of Employment Relations Authority members
Amendments have been made to the Income Tax Act 2007 to ensure that the salaries and allowances of Employment Relations Authority (ERA) members are subject to PAYE.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Depreciation recovery income - cross-references
The amendments correct cross-references in the depreciation rules of the Income Tax Act 2007, along with relevant corresponding provisions in the Income Tax Act 2004.TAXATION (ANNUAL RATES FOR 201617, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: Capital loss amount
Amendments have been made, to clarify that for a company, a tax-deductible depreciation loss arising on disposal of a depreciable asset is not taken into account in determining the value of a capital gain amount that may be distributed tax-free.TAXATION (ANNUAL RATES FOR 2016-17, CLOSELY HELD COMPANIES, AND REMEDIAL MATTERS) ACT 2017: FBT AND SPECIFIED INSURANCE PREMIUMS
The amendment simplifies the fringe benefit tax (FBT) treatment of premiums paid by an employer for life insurance policies taken out by an employer on employees' lives (or a spouse, civil union partner or de facto partner or a joint policy, or on the life of their child).IS 17/04: Income tax - computer software acquired for use in a taxpayer's business
This statement covers the income tax treatment of software for taxpayers who purchase, lease, licence, develop, or commission software for use in a business carried on for the purposes of deriving assessable or excluded income. The statement expressly refers only to taxpayers that are carrying on a business. However, except where otherwise stated, the principles in this statement also apply to taxpayers who incur expenditure on software in deriving assessable or excluded income (otherwise than in the course of carrying on a business).QB 17/03: Tax Administration Act 1994 - the period for which a private or product ruling applies
The binding rulings regime has operated for over 20 years. From time to time, the Commissioner will publish guidance about certain aspects of the regime that may be of wider interest.Determination DET 09/02: Standard-cost household service for childcare providers
Categories: childcare, standard-costDetermination DET-05/03: Standard-cost household service for boarding service providers
Categories: boarding-service-provider, standard-cost2017 review of the Commissioner's mileage rate for expenditure incurred for the business use of a motor vehicle
Categories: mileage-rate, rates-mileage, vehicleNational average market values of specified livestock determination 2017
Categories: livestock, national-average-market-value, year-2017Chatfield & Co Limited v Commissioner of Inland Revenue: Discovery in the Context of Judicial Review
Categories: legalTRA upholds Commissioner's reassessments for undisclosed income
Categories: income-undisclosed, shortfall