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Vol 4 No 8
01 Apr 1993

TIB - April 1993

Policy Statements

  • Qualifying Companies - Market values for QCET purposes
  • Qualifying Companies - Crediting QCET to the ICA
  • Policies we're reviewing
  • Shareholder-employees and FBT on company vehicles
  • Tax treatment of employee home telephone costs
  • Stamp duty on forest sales
  • Taxation of clubs, societies, etc

Questions we've been asked

  • Income Tax Act 1976 
  • Goods and Services Tax Act 1985 
  • Stamp and Cheque Duties Act 1968 

Legal Decisions - Case Notes

  • TRA No.92/118:  expenditure incurred in course of taxable activities, preparatory expenditure, fixed and circulating capital, purchases on revenue account
  • TRA No.91/160:  real estate salespersons, independent contractor, employee
  • Hadlee and Sydney Bridge Nominees Ltd v CIR:  assignment of income, partnership, personal services income
  • TRA No.92/171:  taxpayer acting as trustee, issue of who derived the income, credibility of witness
  • TRA No. 92/59: penal tax, withdrawal of case
  • TRA No.92/40:  real estate salesperson, independent contractor, employee
  • L.R. McLean and others v CIR:  secondhand goods
  • Green and Waugh v Housden and Simcock:  production of documents, scope of demand,  administration and enforcement, extent of powers


This item corrects an example in the item on stamp duty and forest sales, which appeared on page 5 of TIB Volume Four, No.8 (April 1993). The example omitted to show that stamp duty was levied on the GST-inclusive value of the transaction. The correct treatment is:

(2) SilviCo Ltd purchases the registered forestry right in a block of land planted in four year old eucalyptus botryoides with the intention of milling them for hardwood in twenty five years. The purchase price is $23,000 plus GST (i.e., $25,875.00 including GST).

The annual payment for the forestry right is $3,000 (i.e., $3,375.00 including GST).

Conveyance duty at $1.00 per $100 or part thereof is levied on the GST-inclusive purchase price ($259.00); and 

Lease Duty of $0.40 per $100 or part thereof is levied on the GST inclusive maximum annual payment for the forestry right ($13.60).

The total stamp duty payable is $272.60.