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22 Sep 2016

Commissioner’s operational position on tax residence

Outline of the CIR's operational position following the release of interpretation statement IS 16/03 on tax residence.

In Interpretation Statement IS 16/03 – Tax Residence, the Commissioner has updated her position on what is required to have a permanent place of abode in New Zealand following the decision in CIR v Diamond [2015] NZCA 613.

As a result of the Commissioner’s updated position, there may be some situations in which the application of IS 16/03 gives a different result from the application of the Interpretation Statement it replaces – IS 14/01.  As the legal analysis in IS 16/03 represents the correct view of the law, taxpayers can ask Inland Revenue to apply the analysis contained in IS 16/03 to tax positions taken in earlier years.  The Commissioner will consider such requests consistently with the principles set out in the Standard Practice Statement on section 113 (SPS 16/01 – Requests to amend assessments) on a case by case basis.


The Commissioner’s position in relation to taxpayers who relied on the analysis in “Income Tax Amendment Act (No 5) Rules 1989: New Residence Rules” (Public Information Bulletin No 180, June 1989) (PIB No 180) in periods prior to 1 April 2014 can be found in the transitional operational position issued in conjunction with IS 14/01.