INC: Omitted employment income; TAA: Shortfall penalties, onus and standard of proof

INC: Omitted employment income; TAA: Shortfall penalties, onus and standard of proof

INC: Omitted employment income; TAA: Shortfall penalties, onus and standard of proof

INC/GST: Omitted business income; TAA: Shortfall penalties, onus and standard of proof

INC/GST: Omitted business income; TAA: Shortfall penalties, onus and standard of proof

Whether the Taxpayer returned all their assessable income for the income years in dispute. If not, whether the Taxpayer was liable for shortfall penalties.

This fact sheet accompanies Interpretation Statement IS 23/10. IS 23/10 considers the deductibility of holding costs for land, and whether the land being taxed on sale is relevant to deductibility. This fact sheet explains what the conclusions in IS 23/10 mean for the deductibility of your holding costs, depending on your circumstances.

This Interpretation Statement considers the deductibility of holding costs for land and whether the land being taxed on sale is relevant to deductibility. Holding costs are expenses incurred in relation to the ownership of land, such as interest, rates, property insurance, and repairs and maintenance and body corporate levies (provided they are revenue expenses). Holding costs do not include capital improvement costs or expenses that relate only to the use of land.

If you own a foreign residential rental property, you may need to pay tax on the rental income in both New Zealand and in the country where the property is located. 

This overview sets out guidance provided by the Commissioner, which may help you to identify your tax obligations.

The Commissioner issues different types of guidance items to cater for different customer needs.  The different types of items are explained here.

“Short-stay accommodation” (also known as “short-term accommodation) is accommodation provided to a guest for up to four consecutive weeks, in a home that is not the guest’s ordinary residence.   This accommodation is often provided through peer-to-peer platforms such as Airbnb or Bookabach.   

“Short-stay accommodation” does not include: 

• Accommodation provided to residential tenants, boarders, or care home residents
• Student accommodation 
• Emergency accommodation 
  
  

The Commissioner has published several items on short-stay accommodation. This overview sets out these items and provides guidance on tax obligations if you provide short-stay accommodation to guests.