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Vol 6 No 13
01 May 1995

TIB - May 1995

Policy statements

  • Value of pooled vehicles for FBT purposes
  • Time limits for new companies to make QC elections
  • Non-residents registering for GST
  • 1993 IR 6 income tax return guide - error regarding LAQC losses
  • Deductibility of FBT when FBT period spans employer's balance date
  • Deductibility of fines and levies paid by hotel licensees
  • Details inadvertently omitted when completing IR 10 form

Legislation and determinations

  • FBT - prescribed interest rate increased to 11.0%
  • National standard costs for specified livestock - 1995
  • Depreciation - metal speed humps (Determination PROV3)
  • Provisional tax use of money interest rates increased

Questions we've been asked

  • Income Tax Act 1994 
  • Income Tax (Depreciation Determinations) Regulations 1993 
  • Goods and Services Tax Act 1985 

Legal decisions - case notes

  • CIR v Rag Doll Fashions:  Modified hatchback cars were “work-related vehicles” for FBT purposes
  • TRA 93/46: Lump sum payment to enter a franchise agreement is a capital expense
  • TRA 94/18: No remission or maturity of debentures when payments suspended
  • TRA 94/107:  Payment on employment termination was redundancy, not severance
  • Mitsui and Co v CIR: Subsidiary’s bad debt written off was capital expenditure
  • TRA 93/45: Oil well testers were independent contractors
  • TRA 94/110: Retirement allowance can be paid at time of redundancy