TIB - April 2009

Binding rulings

• Subsidised transport provided by employers to employees – value for fringe benefit tax purposes
• Product ruling – BR PRD 09/01

New legislation

• Orders in Council
  • Student loan scheme – interest rate for 2009–10
  • Student loan scheme – volunteer exemption
  • Use-of-money interest methodology and rate changes
  • Drop in FBT rate for low-interest loans

Legislation and determinations

• 2009 International tax disclosure exemption ITR20
• Determination E12: Persons excused from complying with section EA 3 of the Income Tax Act 2007

Standard practice statements

• SPS 09/01: Compulsory deductions from bank accounts

Questions we’ve been asked

• QB 09/01: Payments made in addition to financial redress under Treaty of Waitangi settlements – income tax treatment

Legal decisions—case notes

• The Commissioner is correct not to exercise statutory discretion: TRA 017/08 Decision 5/2009
• Structured finance taxpayer’s appeal dismissed: Westpac Banking Corporation v Commissioner of Inland Revenue
• Time of assessment by Commissioner not seen as justification to uphold judicial review: Amaltal Fishing Company Limited v Commissioner of Inland Revenue
• Taxation Review Authority held relocation drivers are independent contractors and not employees: TRA Decision 4/2009