Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014

The Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill was introduced into Parliament on 22 November 2013. It received its first reading on 10 December 2013, second reading on 27 May 2014 and the third reading on 19 June 2014 followed by Royal assent on 30 June 2014.

The new legislation:

• clarifies the tax treatment of employer-provided accommodation, accommodation payments and other allowances made by employers to cover employee expenditure;
• tightens the thin capitalisation rules;
• tightens the rules relating to the tax treatment of land-related lease payments;
• removes uncertainty and distortions arising from the current "black hole" tax treatment of certain types of expenditure;
• introduces provisions to allow New Zealand's financial institutions to more easily comply with the United States' Foreign Account Tax Compliance Act;
• introduces new tax rules for charities which have been removed from the register of charitable entities;
• clarifies the tax status of certain community housing entities that provide home-ownership products to low-income households;
• clarifies the acquisition date of land, and agreements for the sale and purchase of property or services in foreign currency to give greater certainty to taxpayers;
• makes various changes to the GST rules to make them easier apply; and
• makes various remedial changes to ensure the tax rules remain fit for purpose.

The new Act amends the Income Tax Act 2007, Income Tax Act 2004, Tax Administration Act 1994, Goods and Services Tax Act 1985 and the Child Support Act 1991.