TIB - June 1998

Legislation and determinations

• Livestock – 1998 national average market values
• Fringe benefit tax – prescribed interest rate increased to 11.23%
• Motor vehicles rented for short-term periods of 1 month or less – Dep’n Determination DEP34
• Use of money interest rates
• Delimbers, self-propelled, mobile – Depreciation Determination DEP35
• Wind turbine generators – Depreciation Determination DEP36
• Hi-trim shelter trimmers – draft depreciation determination
• Comparators (consumer electronics comparative display units) – draft dep’n determination

Interpretation statements

• Meaning of “incurred” – the Privy Council decision in the Mitsubishi case

Standard practice statements

• Unacceptable interpretation – non application of a tax law (INV-206)
• GST returns – correcting minor errors (INV-490)

Legal decisions - case notes

• Debts acquired as part of merger – whether assessable: Wrightson Ltd v CIR
• Retirement payment or redundancy payment – nature of sum received: W Cranson v CIR
• Forestry block sold early – cessation of activity for GST purposes?: CIR v NKE Drummond Trust
• FBT on vehicles used by employees of earthmoving company: LG & JH Schick v CIR
• Whether the Commissioner can set retrospective due dates: WP and SM Withey v CIR
• Power company – deductibility of replacing overhead cables with underground cables: Poverty Bay Electric Power Board Ltd v CIR
• Tax avoidance – reverse takeover arrangements: TRA Various, Dec 15/98
• Redundancy payment received at time of retirement: TRA 94/131
• Business acquired from receiver as going concern – whether GST input claim allowable: TRA 97/82
• Foreign tax credits disallowed – case dismissed for non-appearance: TRA 97/9

See also the appendix - Vol 10 No 6A