This QWBA confirms that s IB 3(2)(c), which is a central requirement of the business continuity test, is not breached when a standard PPP project transitions from the design and construction phase to the operation and maintenance phase. Accordingly, a corporate PPP contractor may generally rely on the business continuity test to carry forward losses incurred during the design and construction phase, even if shareholder continuity is breached during that phase.

This item summarises a private ruling about the supply of accommodation in a retirement village that includes the provision of mandatory services and whether this constitutes the taxable supply of accommodation in a commercial dwelling.

The Commissioner commenced liquidation proceedings against KD Transport Limited (KD). KD requested relief under s 177 of the TAA which the Commissioner declined. KD sought judicial review of the Commissioner’s decision declining its proposal for relief and also applied to stay the liquidation proceeding, pending determination of its judicial review application. The stay application needed an extension of time as it was made outside the five working day period prescribed in the High Court Rules. The application for an extension of time was dismissed, and the Associate Judge made an order liquidating KD.

This item summarises an adjudication about the acquisition and disposal of cryptoassets (including staking rewards) and whether the amounts derived are income.

This interpretation statement sets out the Commissioner’s view on the meaning of “taxable activity”.  The Commissioner has discussed this concept in numerous public items, but generally in a specific context such as subdivisions of land, horse racing or horse breeding.  This statement is of more general application. It replaces GST on disposal of assets used principally in making exempt supplies Tax Information Bulletin Vol 1, No 7 (January 1990), 6 and Whether an activity is a GST taxable activity or a hobby Tax Information Bulletin Vol 6, No 14 (June 1995), 5.

New legislation

• SL 2025/151: Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations (No 2) 2025
• SL 2025/150: Income Tax (Deemed Rate of Return on Attributing Interests in Foreign Investment Funds, 2024–25 Income Year) Order 2025

Ruling

• BR Prd 25/04: PPS Mutual Limited

Operational position

• OP 25/02: Commissioner’s operational position on the FBT treatment of open loop cards provided by employers to employees

Interpretation statements

• IS 25/19: Income Tax – Whether an off-market share cancellation is made in lieu of the payment of a dividend
• IS 25/20: Student Loans – Overseas borrowers and their obligations

General article

• GA 25/01: Tax on any fees paid to a member of a board, committee, panel, review group or task force

Technical decision summaries

• TDS 25/21: Omitted income and shortfall penalty
• TDS 25/22: GST – supply of accommodation

 

 

This interpretation statement discusses when a student loan borrower will be a New Zealand-based borrower and when they will be an overseas-based borrower. A borrower’s status as New Zealand-based or overseas-based will determine whether interest accrues on their loan and will impact their repayment obligations.

Tax Information Bulletin - Vol 37 No 9, October 2025

This determination relates to the financial arrangement spreading method that a company (Company A) is to use to return income and expenditure in relation to certain off-market contracts for difference in respect of the wholesale price of electricity.

This interpretation statement considers the application of s CD 22(6) and (7) of the Income Tax Act 2007 in relation to the factors to be taken into account in determining whether an off-market cancellation of shares is made in lieu of the payment of a dividend.

The item updates and replaces IS2966

Tax Information Bulletin - Vol 37 No 9, October 2025

On 16 April 2025, the Commissioner issued Questions we've been asked (QWBA) QB 25/07 What is the income tax treatment of gift cards and products provided as trade rebates or promotions?

This QWBA states the Commissioner's view of the correct tax treatment for when an employer provides an open loop card (as defined in the QWBA) to an employee. The employer should gross up the face value of the open loop card given to an employee and return PAYE on that amount. During consultation for the QWBA, the Commissioner learned that employers often treated open loop cards as a fringe benefit and returned them for fringe benefit tax (FBT). As a result, the QWBA advised that the following decision had been made regarding the past treatment of open loop cards:

Past treatment of open loop cards

[76.]   The Commissioner acknowledges that some employers have been incorrectly treating open loop cards provided to employees as fringe benefits (and subject to the FBT rules) and not the payment of money (and PAYE income payments). The Commissioner will not apply resources to correct previous tax positions taken in return periods ending on or before the date of this statement where an employer has incorrectly treated the provision of an open loop card to an employee as a fringe benefit and returned FBT on that basis.

Since the release of the QWBA, Parliament has proposed amendments to the law to allow open loop cards to be treated as a fringe benefit. This amendment is part of the Taxation (Annual Rates for 2025–26, Compliance Simplification, and Remedial Measures) Bill (199-1) that will be enacted before 31 March 2026. The amendment will be retrospective.

The Commissioner recognises that immediate implementation of the position outlined in the QWBA would be difficult for employers for tax positions taken after the date of issue of the QWBA and before amendment of the law. This is due to required changes to, for example, computer systems, payroll systems and accounting records. The Commissioner also notes that such changes would only be required for a short time given the amendment’s retrospective effect.

Therefore, the Commissioner will also not apply resources to determining whether an employer taxpayer has applied the position outlined in the QWBA correctly for the PAYE periods that cover 1 April 2025 to 31 March 2026.  This position only applies where the employer has returned fringe benefit tax on the provision of open loop cards during this period.

 

Tax Information Bulletin - Vol 37 No 9, October 2025