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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

IS 24/04 Trustee of employee share scheme trust treated as nominee

12 Jun 2024 Interpretation statements / 2024
This interpretation statement considers the available subscribed capital, treasury stock and dividend implications of a trustee of an employee share scheme holding shares as nominee.

QB 24/03 Fringe benefit tax – employee share loans and associates

12 Jun 2024 Questions we've been asked / 2024
This question we’ve been asked explains whether the employee share loan exclusion from fringe benefit tax can apply when an associate of the employee enters into a loan to acquire shares in connection with the employee’s employment.

TDS 24/13 GST – supply of accommodation

11 Jun 2024 Technical decision summary / 2024
GST: commercial dwelling; residential establishment; domestic goods and services; input tax deduction; zero-rated for the sale of land

TDS 24/12 Compensation – capital or revenue nature

07 Jun 2024 Technical decision summary / 2024
Income tax: business income, capital nature, compensation, income under ordinary concepts, lump-sum payment, settlement payment

OP 24/01 Commissioner’s operational position on the GST treatment of landlords supplying properties for use as transitional housing

07 Jun 2024 Operational positions / 2024

The Commissioner has released three public rulings on the GST treatment of supplies of properties by landlords to organisations for use in the Transitional Housing Programme of the Ministry of Housing and Urban Development (HUD): BR Pub 24/01, 24/02 and 24/03 (the Rulings).

This Operational Position gives guidance on how the Commissioner will apply the technical view set out in the commentary to the Rulings where landlords have taken incorrect tax positions in previous GST periods.

In brief:

  • Where previous supplies made by landlords were incorrectly treated as taxable supplies (but were exempt supplies), the Commissioner does not expect assessments to be corrected to reverse input tax deductions if the landlord is subsequently making taxable supplies because of the organisation’s new arrangements.Doing so would only result in input tax deductions in a later period because under the arrangements covered by the Rulings there will have been a permanent change in use from making exempt supplies to making taxable supplies.

     

  • In other situations, landlords should consider how the GST legislation applies to their individual circumstances and contact Inland Revenue (by sending a message in MyIR with “transitional housing” in the subject line) or their tax advisor to determine if they may have taken incorrect tax positions.Depending on the situation, several provisions of the GST legislation could be relevant, as referred to below.

BR Pub 24/01 - 24/03 GST – Supplies of properties used for transitional housing

07 Jun 2024 Rulings / Public / 2024

These Public Rulings consider the GST treatment of supplies of properties by landlords to organisations for use in the Ministry of Housing and Urban Development’s Transitional Housing Programme. Many organisations don’t own their own properties so enter into leases for properties with private landlords (which may include developers, investors and motel owners). There had previously been some uncertainty with how the landlords account for GST. 

These items specify when the landlords will be subject to GST and when they have exempt supplies. BR Pub 24/01 applies to a supply of a property that will be an exempt supply on the basis that the property will be used for the principal purpose of accommodation in a dwelling. 

BR Pub 24/02 and BR Pub 24/03 apply to supplies of a property that will not be exempt supplies.  The commentary to these Rulings assists in determining whether the supply will be taxable or exempt. 

These rulings have been prepared in response to requests for clarity in this sector.  The conclusions in these items have no effect on the rent paid by transitional housing tenants, which is calculated based on a fixed proportion of their income. 

Any landlords with specific queries about their situation can send a web message through their MyIR account using “transitional housing” in the subject line and this will flow through to IR staff familiar with the issues in this area.

BR Pub 24/01 - 24/03 FS GST – Supplies of properties used for transitional housing - fact sheet

07 Jun 2024 Fact sheets / 2024

This fact sheet accompanies BR PUB 24/01 - 24/03, which consider the GST treatment of properties supplied by landlords to organisations for use in the Ministry of Housing and Urban Development’s (HUD’s) Transitional Housing programme.

Any landlords with specific queries about their situation can send a web message through their MyIR account using “transitional housing” in the subject line and this will flow through to IR staff familiar with the issues in this area.

OS 24/01 Exemption from electronic filing

06 Jun 2024 Operational statements / 2024

This Statement replaces OS 19/01. The operational position is unchanged but legislative references and the format of the Statement has been updated. This Statement sets out the criteria for a person to be granted an exemption from the requirement to file returns/information electronically in relation to:

  • an employer who is included in the online group of employers;
  • a GST registered person who exceeds the statutory threshold for filing returns electronically;
  • a person who makes a payment of investment income.

Vol 36 No 5 TIB - June 2024

31 May 2024 TIB / Volume 36 - 2024

Case summaries

  • CSUM 24/03: Taxation Review Authority (TRA) 007/22 [2024] NZTRA 003
  • CSUM 24/04: Commissioner of Inland Revenue v McGuire [2024] NZHC 883 

Technical decision summaries

  • TDS 24/06: Sale of property and the bright-line test
  • TDS 24/07: Suppressed cash sales, GST and evasion shortfall penalties
  • TDS 24/08: Employee Share Scheme – right to receive shares

CSUM 24/03 TRA finds Notice of Claim defective so proceedings a nullity, alternatively Challenge deemed withdrawn

31 May 2024 Case summaries / 2024

The Taxation Review Authority (TRA) has no jurisdiction to hear a Challenge Proceeding regarding the imposition of use of money interest.

The Disputants failed to file a valid Notice of Claim concerning a second issue which had the potential to be within the TRA’s jurisdiction. Accordingly, the Challenge Proceedings were defective (a nullity) with no evident path to rectification.

The Disputants failed to attend a mandatory directions hearing. There was no good reason for this and there were no exceptional circumstances. The result being the proceedings are at an end.

Tax Information Bulletin - Vol 36 No 5, June 2024

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Consultation closing soon

ED0257: Authority to Act for Tax Agents and other Intermediaries and Nominated Persons

Consultation closes: 28 June 2024

 

 

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