TIB - June 1997

Interpretation statements

• Trophies and animal products derived from the tourist, hunting and safari industry: zero-rating under GST

Legislation and determinations

• Electronic article surveillance systems – depreciation determination DEP26
• Average market values of specified livestock – 1997
• Mulchers (Commercial) – depreciation determination DEP25
• Ink mixing systems, computerised – draft general depreciation determination
• Fringe benefit tax – prescribed interest rate decreased to 9.65%
• “Kiwiplus” – kiwifruit packhouse software
• Taxation (Income Tax Rates) Act 1997
• Deemed rate of return announced for foreign investment fund regime

Binding rulings

• Employment Court awards for lost wages or other remuneration – employers’ liability to make tax deductions (BR Pub 97/7 and 97/7A)

Questions we’ve been asked

• Income Tax Act 1994
  • Whether doctor companies can return income using the cash basis
  • Depreciation of intangible assets
  • Non-resident withholding tax on royalties paid to overseas holder of copyright
  • Resident withholding tax on interest paid on GST refunds paid late
• Estate and Gift Duties Act 1968: Gift duty exemption clarified

Legal decisions - case notes

• Conveyance duty – land acquisition: Fulton Hogan Canterbury v CIR
• Judicial review – assessment under appeal: Miller & O’Neill v CIR
• Penal tax – failure to account for PAYE: TRA 96/18