TIB - February 2014

Interpretation statements

• IS 13/03: Income tax – Deductibility of expenditure incurred in borrowing money – section DB 5
• IS 13/03: Income tax – Deductibility of expenditure incurred in borrowing money – section DB 5 – Transitional operational approach

Legislation and determinations: Correction to depreciation determination PROV25

Questions we’ve been asked: QB 13/05: Income tax – deductibility of a companion’s travel expenses

Legal decisions – case notes

• Commissioner’s application for strike-out successful
• Rule in Mannix upheld
• Resource consent not a stand-alone asset
• Employee indemnity fund a tax avoidance arrangement
• Property rental activities a business and not a passive investment
• Unsuccessful claim for recovery of a statutory debt owing under section 46 of the Goods and Services Tax Act, unsuccessful application for judicial review
• Proceedings struck out for failing to comply with unless orders
• Case transfer and consolidation