This draft determination sets depreciation rates for hydrofraise rigs used in the ordinary course of business.
DET 19/02 (CPI 2022) 2022 CPI adjustment to DET 19/02: Short-stay accommodation
DET 19/01 (CPI 2022) 2022 CPI adjustment to DET 19/01: Household 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 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.
BR Pub 22/01 - 22/05 Income tax – Australian limited partnerships and foreign tax credits
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.
Vol 34 No 4 TIB - May 2022
- 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
- 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
- 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
- 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.
Public Advice and Guidance work programme
The Tax Counsel Office is starting work on the draft 2022-23 work programme, and would like to know about any issues you think we should publish guidance on. Please include a short description of the issue and why you think its important, including legislation references and case names if available.
Send your suggestions to [email protected] by 31 May 2022.
COVID-19 variation determinations
We have published a number of determinations that recognise the impact of COVID-19 on taxpayers and their ability to comply within timeframes.
See COVID-19 variations.