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