Tax
Provisional Tax Regime
We examine the several concessional changes that the provisional tax regime has been subject to over the past 10 years.
Is a subdivision subject to income tax and GST?
When determining whether a gain on disposal of land is subject to income tax, various land taxing provisions must be considered.
Residential property – a class of its own
The tax treatment of residential rental investments has become a tangled web of complexity due to changes in legislation over the past few years.
GST 101
Even though it is called simple and broad based, having your GST returns periodically independently reviewed is a good idea.
Fringe Benefit Tax Updates
We examine a recent review of New Zealand’s current Fringe Benefit Tax (FBT) regime.
Update – GST on Farmhouses and Holiday Homes
In 2017 Inland Revenue released an Interpretation Statement, IS 17/02, which formalised the long-standing practice of allowing a farmer to claim a portion of their farmhouse expenditure on the basis it is the “headquarters” of the farm. But then in 2020 Interpretation Statement IS 20/05 was released by Inland Revenue which overthrew the common practice … Read more
Are Technical Decision Summaries the key to information transparency?
Inland Revenue has started publishing Technical Decision Summaries (TDS’) from mid-2021. A TDS is an abridgment of either an adjudication or private ruling decision made by Inland Revenue’s Tax Counsel Office (TCO). TDS’ will be published within three months of a technical decision being finalised. They are not binding and are for information use only, … Read more
Rollover relief – Does it go far enough?
Residential property acquired after 27 March 2021 is subject to a 10-year bright-line period, or 5 years if the property qualifies as a ‘new build’. The extension to 10 years has increased the likelihood that a property transfer will be caught. In an attempt to alleviate the risk that related party transfers would be unfairly … Read more
Taxation of capital
In March 2022 Inland Revenue released a government discussion document that contains a proposal that represents a further erosion of the principle that New Zealand does not tax capital gains. Currently, if a person sells shares in a company and the shares were not purchased with the intention of resale (such as by a share … Read more
Farewell to “tax invoices’’
Despite significant technological and operational business changes, the rules regarding GST tax invoices have remained largely unchanged since GST was first introduced in 1986. However, new legislation was passed on 29 March 2022 that is intended to improve and modernise GST invoicing and record-keeping requirements. A long-standing requirement to be able to make a GST … Read more
