TIB - July 2014

Revenue alert: RA 14/01: Donations tax credit – whether payments made to a private education centre or childcare centre are gifts and the donor entitled to a donations tax credit; whether payments are liable to GST

Binding rulings

• Factual Review process
• Public rulings BR Pub 14/01–14/05: Income tax – Australian source income earned by Australian limited partnership and foreign tax credits

Interpretation statements: IS 14/03: Income tax – consumable aids

New legislation

• Budget 2014 tax legislation
• Taxation (Parental Tax Credit) Act 2014
• Parental Leave and Employment Protection Amendment Act 2014
• Cheque Duty Repeal Act 2014
• Orders in Council
  • Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2014
  • Privacy (Information Sharing Agreement between Inland Revenue and New Zealand Police) Order 2014

Operational statements: 2014 review of the Commissioner’s mileage rate for expenditure incurred for the business use of a motor vehicle

Questions we’ve been asked

• QB 14/04: Income tax – Depreciation roll-over relief for Canterbury
• QB 14/05: Income tax – ASC rules – calculating the “subscriptions” amount for an amalgamated company when the shares of an amalgamating company are held by another amalgamating company

Legal decisions – case notes

• Evasion shortfall penalties
• Reconstruction under the “dividend stripping” provision upheld