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Foreign currency amounts - conversion to New Zealand dollars (for the 12 months ending 30 September 2019)

This article provides the exchange rates acceptable to Inland Revenue for converting foreign currency amounts to New Zealand dollars under the controlled foreign company ('CFC') and foreign investment fund ('FIF') rules for the 12 months ending 30 September 2019

Categories:  controlled-foreign-company-(cfc),   currency,   foreign-currency,   foreign-investment-fund-(fif),   year-2019  

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General Determination DEP105: Tax Depreciation Rate for pushrod/cable propelled pipeline camera inspection systems (not including pipeline crawlers)

This determination may be cited as 'Determination DEP105 Tax Depreciation Rates General Determination Number DEP105: Pushrod/cable propelled pipeline camera inspection systems (not including pipeline crawlers)'

Categories:  asset-pipeline,   asset-pushrod,   depreciation  

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Commissioner successful in tax avoidance case

This matter relates to two proceedings heard at the same time. The first proceeding was in relation to Mr Brown personally ('the Mr Brown proceedings'). Mr Brown challenged income tax assessments for the 2001 and 2003 to 2008 income tax years in which the Commissioner of Inland Revenue ('the Commissioner') rejected Mr Brown's proposed adjustments removing income of $857,848 attributed to Mr Brown on the basis there was a tax avoidance arrangement. The second proceeding was in relation to DLC as trustee of the DLC Family Trust ('the DLCFT proceedings'). DLC challenged income tax assessments for the 2014 and 2015 income tax arrears in which the Commissioner rejected DLC's proposed adjustment seeking to have interest deductions of $256,680 attributed to DLC in each year on the basis that these interest deductions arose from a tax avoidance arrangement. In both proceedings the Taxation Review Authority ('the Authority') found that there was a tax avoidance arrangement and upheld the Commissioner's assessments.

Categories:  arrangement,   avoidance,   beneficiary-income,   interest-expenses,   rental-income,   tax-avoidance,   trust  

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Court of Appeal considers Commissioner's opposition to the restoration of companies to the New Zealand Companies Office register to protect the integrity of the tax system

This was an appeal of the High Court's decision restoring five companies to the Companies Register ('the register') under s 329 of the Companies Act 1993 ('the Act'), Commercial Management Ltd v Commissioner of Inland Revenue [2018] NZHC 2224. The Court of Appeal overturned the High Court's decision

Categories:  company-register,   legal  

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High Court considers whether a repayment of a loan can generate an input tax deduction

The matter was an appeal of a Tax Review Authority ('the TRA') decision, TRA 08/18 [2019] NZTRA 3, denying Mr Darryl Patrick Burke the right to claim additional input deductions for a payment made during the two-month taxable period ending 30 September 2007 ('the Disputed Period'). Mr Burke argued that the payment of $498,640.48 to his financier, Citywide Capital Limited ('CCL'), represented payment for the goods and services supplied to him during the development. The Commissioner of Inland Revenue ('the Commissioner') viewed the payment as fulfilment of Mr Burke's obligation under a loan agreement with CCL; the payment was not charged with goods and services tax ('GST') and accordingly cannot generate an input tax deduction. The TRA agreed.

Categories:  goods-and-services,   input-tax,   loan,   repayment,   taxable-supply