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Welcome to Tax Technical

This site contains the Commissioner’s interpretation of existing tax law, our Work Programme for the year, and where you can provide feedback on any new work underway or apply for a binding tax interpretation.
This site contains the Commissioner’s interpretation of existing tax law. Read more

TDS 24/03 Fringe Benefit Tax: discounted goods provided by third party

22 Feb 2024 Technical decision summary / 2024
Fringe benefit: discount provided by third party; value of fringe benefit

GA 24/01 Proposed increase in the trustee tax rate to 39%

02 Feb 2024 General articles / 2024

The Government has proposed that from the 2024/25 income year, the tax rate applying to trustee income will increase to 39% to align with the top personal tax rate. These changes were included in the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill introduced on 18 May 2023. The proposals in the Bill are not legislation until enacted and are subject to change through the parliamentary process. 

Since the increase in trustee tax rate was proposed, Inland Revenue has been asked to provide guidance around how it may perceive some taxpayer transactions and structural changes. This article is intended to provide high-level guidance based on Inland Revenue’s interpretation of the current law. 

Vol 36 No 1 TIB - February 2024

01 Feb 2024 TIB / Volume 36 - 2024

New legislation

  • Public Act 2023 No 70 – Taxation Principles Reporting Act Repeal Act 2023
  • SL2023/288 – Order in Council – Income Tax (Tax Credit) Order 2023

Rulings

  • BR Prd 23/02: Waka Kotahi NZ Transport Agency
  • BR Prd 23/03: Everlasting Nominees Limited
  • BR Prd 23/04: Everlasting Nominees Limited
  • BR Prd 23/05: Everlasting Nominees Limited
  • BR Prd 23/06: WorkRide Limited

Interpretation statement

  • IS 23/11: Income tax: Income – when gifts are assessable income

Questions we’ve been asked

  • QB 23/08: Income tax – deductibility of expenditure – renting to flatmates
  • QB 23/09: Income tax – Forfeited deposits from cancelled land sale agreements
  • QB 23/10: Foreign investment fund (FIF) calculation methods in cases of non-compliance

Technical decision summaries

  • TDS 23/14: Omitted income, shortfall penalties
  • TDS 23/15: Income Tax and GST – Omitted business income and liability for shortfall penalties
  • TDS 23/16: Income Tax and GST – Omitted business income and liability for shortfall penalties
  • TDS 23/17: Income Tax – Omitted income and liability for shortfall penalties
  • TDS 23/18: Income Tax – Omitted income and liability for shortfall penalties
  • TDS 23/19: Income Tax – Omitted income and liability for shortfall penalties
  • TDS 23/20: Deductibility of retention payments
  • TDS 24/01: Interest free loan and dividends

IS 24/01 Taxation of trusts

01 Feb 2024 Interpretation statements / 2024

This interpretation statement explains the taxation of trusts under the trust rules in the Income Tax Act 2007. It updates and replaces IS 18/01.

The statement is a general guide as to how income derived by the trustees of a trust is taxed.  It also explains the various compliance obligations imposed on settlors, trustees and beneficiaries under tax law.

It does not deal with the proposed change to the trustee tax rate and related measures contained in the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill. These will be explained in a Tax Information Bulletin after the legislation passes.

TDS 24/02 Renovation work on recently acquired properties and the capital limitation

31 Jan 2024 Technical decision summary / 2024
Income tax; general permission; capital limitation; neglected acquisition.

AE 24/01 Participating jurisdictions for the CRS applied standard 2024

18 Jan 2024 Determinations / CRS / Jurisdictions
The Commissioner determined this list of Participating Jurisdictions effective from 1 April 2024. Since the last update in 2023, Georgia, Kenya, Maldives, Moldova, Montenegro, Morocco, Thailand, Uganda and Ukraine have been added as Participating Jurisdictions. These are jurisdictions which are able to provide New Zealand with financial account information under the Common Reporting Standard (CRS). The list of participating jurisdictions is important for financial institutions when conducting due diligence in respect of accounts held by passive non-financial entities.

TDS 24/01 Interest free loan and dividends

09 Jan 2024 Technical decision summary / 2024

Income tax: capitalisation of company structure; interest free loan whether a dividend arises; withholding tax; tax avoidance.

Tax Information Bulletin - Vol 36 No 1, February 2024

QB 23/10 Foreign investment fund (FIF) calculation methods in cases of non-compliance

15 Dec 2023 Questions we've been asked / 2023

This QWBA explains that a person has a choice of methods to calculate FIF income even if they fail to declare the income in a tax return and later file a voluntary disclosure, or fail to file a tax return by the due date and later provide one including the income.

It also explains what happens if a person does not file a return and the Commissioner issues a default assessment.

This item is particularly relevant for natural persons and eligible trustees.

Tax Information Bulletin - Vol 36 No 1, February 2024

QB 23/09 Income tax – Forfeited deposits from cancelled land sale agreements

13 Dec 2023 Questions we've been asked / 2023

This Question We’ve Been Asked (QWBA) clarifies the circumstances in which a forfeited deposit from a cancelled land sale agreement is income to the seller.

Tax Information Bulletin - Vol 36 No 1, February 2024

BR Prd 23/07 Qantas Airways Limited

13 Dec 2023 Rulings / Product / 2023
This Ruling sets out some tax implications of the transfer of shares in Qantas Airways Limited to New Zealand resident (but not transitional resident) employees of the Qantas Group in accordance with the Employee Recovery Retention Plan and, where the employee opted to do so, the subsequent sale of those shares pursuant to a share sale facility offered by the Qantas Group.
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Consultation closing soon 

ED00253: Tax Depreciation Rate for metal (scrap) recovery plant

Consultation closes: 29 February 2024

ED00250: Tax Depreciation Rate for horticulture LED grow light systems

Consultation closes: 29 February 2024

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