Vol 10 No 5
Issued
01 May 1998

TIB - May 1998

Legislation and determinations

  • Accrual determinations G9B and G14A
  • 1998 international tax disclosure exemption ITR9
  • Credit card transaction duty repealed
  • New trading stock rules may affect provisional tax estimates (press release)
  • Budget information in next month’s TIB

Standard practice statements

  • Temporary shortfall – permanent reversal (INV-230)
  • Binding rulings Domestic air travel – zero-rating for GST purposes (BR Pub 98/3)
  • AMP Society’s demutualisation – issue of shares does not constitute a claim (BR Prd 97/78)
  • AMP Society’s demutualisation – extinguishment of former rights does not constitute a gift (BR Prd 97/84)
  • AMP Society’s demutualisation – issue of shares does not constitute a dividend (BR Prd 97/85)
  • Non-binding tax statement to AMP policyholders
  • Notice of Product Ruling BR Prd 98/11
  • Interpretation statements GST and debt factoring

Questions we’ve been asked

  • Income Tax Act 1994 Vehicle registration plates bought as an investment – income tax implications
  • Endowment policy taken out to repay a business loan
  • Stamp and Cheque Duties Act 1971: Approved issuer levy – Commissioner’s policy on late payments

Legal decisions - case notes

  • Tax avoidance – trading company shares sold to holding company at inflated price: TRA 90/207, 94/154, 93/59, 94/152, 93/58, 94/155, 93/62, 94/153
  • Planning and legal costs – whether capital or revenue: TRA 96/081
  • Power company: non-deductibility of laying underground cables, assessability of electricity supplied but not yet metered or invoiced: Hawkes Bay Power Distribution Ltd v CIR

See also the appendix - Vol 10 No 5A