This interpretation guideline considers the deductibility of the costs the taxpayer incurs in configuring or customising a supplier’s application software in a software as a service (SaaS) arrangement. Depending on the circumstances, the costs may be deductible under the general permission (s DA 1), as development expenditure (s DB 34) or as relating to depreciable intangible property.

The wind-up of a holding structure used by the Taxpayer for investments. The wind-up was to be done in two steps: amalgamation and liquidation.

GST: input tax deduction; tax invoice; taxable activity; cancellation of registration.

This determination sets an updated depreciation rate for gaming machines (electronic) used in the ordinary course of business, with effect from the 2023/24 and subsequent income years.

The High Court dismissed the applicant’s application under s 8 of the Judicial Review Procedure Act 2016 for judicial review of a decision by the Commissioner declining the applicant’s application to amend his income tax assessments under s 113 of the Tax Administration Act 1994.

The High Court was not persuaded that material relevant considerations were overlooked or that material irrelevant considerations were taken into account in determining the application for amendment of the assessments. The High Court did not consider that there was a predetermination of the application or that an unreasonable decision (one outside the bounds of reason) had been made.

The Commissioner has released three Public Rulings concerning the GST treatment of fees paid to directors and board members:

• BR Pub 23/01 “Goods and Services Tax – Directors’ Fees”;
• BR Pub 23/02 “Goods and Services Tax – Fees of Board Members not appointed by the Governor-General or Governor-General in Council”; and
• BR Pub 23/03 “Goods and Services Tax – Fees of Board Members appointed by the Governor-General or Governor-General in Council”.

This Operational Position gives guidance on how these rulings will be applied.

This item replaces OP 23/01: Commissioner’s operational position on professional directors and board members incorrectly registered for GST.

New legislation

• SL2023/179 – Order in Council: Taxation (Use of Money Interest Rates) Amendment Regulations (No 2) 2023
• SL2023/184 – Order in Council: Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations (No 2) 2023

Ruling

• BR Pub 23/09 – 23/13: Investing into a US limited liability company – New Zealand tax consequences

Question we've been asked

• QB 23/07: GST - Directors and board members providing their services through a personal services company

Technical decision summary

• TDS 23/10: Distributions from private foundation on dissolution

The August 2023 operational guidelines on section 6A settlements outline Inland Revenue’s internal approach to settling disputes.

The guidelines were originally produced as an internal document, but they have been publicly released to provide transparency as to the process Inland Revenue will follow for settlements. 

New legislation

• Public Act 2023/27 - Child Support (Pass On) Acts Amendment Act 2023 – Special report

Ruling

• BR PUB 23/08: Goods and Services Tax – Payments made by parents to state and state integrated schools

Interpretation statements

• IS 23/05: GST – Section 5(6D): Payments in the nature of a grant or subsidy
• IS 23/06: Income tax – Government payments to businesses (grants and subsidies)
• IS 23/07: GST – Court awards and out-of-court settlements

Technical decision summary

• TDS 23/08: GST input tax deductions and output tax liability