This draft determination sets depreciation rates for hydrofraise rigs used in the ordinary course of business.

This update to OS 19/03 shows the annual adjustment to the square metre rate for the dual use of premises.

This update to determination DET 09/02 shows the annual adjustment to the standard-cost household service for childcare providers.

This update to DET 19/02 shows the annual adjustment to the standard-cost household service for short-stay accommodation.

This update to DET 19/01 shows the annual adjustment to the standard-cost household service for boarding service providers.

Send us your feedback on this draft standard practice statement, which sets out the rights and responsibilities of both a taxpayer and the Commissioner when either party commences a dispute.

The Commissioner applied and was granted leave to commence a proceeding under s 89(1 B) of the T AA by way of originating application. She sought an order, in accordance with s 89L(2B), for an extension of time for issuing a challenge notice to Mr Parore. 
The Commissioner sought an extension of time because the civil tax disputes procedure she instituted was deferred in June 2018 while criminal proceedings against Mr Parore ran their course. The Commissioner submitted that this was an "exceptional circumstance" under s 89L(3) which prevented her from issuing a challenge notice to Mr Parore within the four-year time limit in s 89P. 
Harvey J declined the application, on the basis that it would be inappropriate for the Commissioner's own prosecutorial misconduct to be accepted as an "exceptional circumstance" to justify an extension of time. 

Mr Li and his company, AA Taxation & Accounting Service Ltd ("AA Taxation") applied for three declaratory orders under Declaratory Judgment Act 1908 to vindicate their contention that the forfeiture of assets by Mr Li and his wife under the Criminal Proceeds (Recovery) Act 2009 ("CPRA") may be treated as 'payment in lieu' of tax. 
Wylie J declined to grant each of the three declarations sought by Mr Li and AA Taxation. 
By way of counterclaim, the CIR sought five declarations on various grounds. Of these:

• Wylie J declined to grant two declarations in relation to whether any assets of AA Taxation were restrained or forfeited in the CPRA proceeding because that issue was not determined in the CPRA  proceeding.
• Wylie J granted three declarations sought by the CIR, and emphasised that the relevant restraining orders and asset forfeiture orders did not represent the payment of tax; and the CIR was/is not prevented from collecting the tax owed by Mr Li and/or AA Taxation.

These five Rulings address the ability of a New Zealand resident partner of an Australian limited partnership to claim foreign tax credits for Australian income tax and dividend withholding tax paid by the partnership on Australian source income.  The Rulings do not consider any other situations involving foreign income and foreign tax paid.  The Rulings concern Australian limited partnerships that are corporate limited partnerships for Australian tax purposes and are treated under Australian tax law as companies while in New Zealand they retain partnership and flow through tax treatment.

A foreign tax credit will be available to the New Zealand partners of an Australian limited partnership for Australian income tax or dividend withholding tax that is paid by the limited partnership in certain situations (detailed in the Rulings).  The amount and timing of the tax credit is determined under subpart LJ of the Income Tax Act 2007.

New legislation

• LI2022/55 - Order in Council – Tax Administration (Extension of Period of Relief for Certain Disposals of Trading
  Stock) Oder 2022
• LI2022/84 - Order in Council – COVID-19 Support Payments Scheme (Omicron Outbreak) Amendment Order
  (No 2) 2022

Rulings

• BR Prd 22/02: Ovato Residential Distribution NZ Limited
• BR Prd 22/03: Ovato Residential Distribution NZ Limited
• BR Prd 22/05: Reach Media New Zealand Limited
• BR Prd 22/06: Reach Media New Zealand Limited
• BR Prd 22/07: Reach Media New Zealand Limited

Determinations

• COV 22/15: Variation in relation to s RP 17B(4) of the Income Tax Act 2007 to extend time for tax pooling transfers
• COV 22/16: Variation in relation to the definition of “finance lease” in s YA 1 of the Income Tax Act 2007
• AE 22/01: 2022 Participating jurisdictions for the CRS applied standard

Operational statement

• OS 22/02: Reporting requirements for domestic trusts

Question we’ve been asked

• QB 22/01: Can a payment that compensates for the time value of money be taxable income if it is outside the
  statutory definition of “interest”?

Legal decisions - case summaries

• CSUM 22/01 - High Court dismisses Commissioner’s application for an extension of time to issue challenge notice.
• CSUM 22/02 - High Court confirms that forfeiture of criminal proceeds is not ‘payment in lieu’ of tax.