Vol 31 No 9
Issued
01 Oct 2019

TIB - October 2019

New legislation

Taxation (Research and Development Tax Credits) Act 2019

Binding rulings

BR Pub 19/04: Income tax – application of the employee share scheme rules to employer issued crypto-assets provided to an employee

Questions we’ve been asked

  • QB 19/12: What is the fringe benefit tax, GST and income tax treatment of an employee contribution to a fringe benefit?
  • QB 19/13: Income tax – when does the business premises exclusion to the bright-line test apply?
  • QB 19/14: Income tax – when does the business premises exclusion in s CB 19 apply to preclude land sales from being taxed under ss CB 6 to CB 11?

Operational statements

  • OS 19/04a: Commissioner’s statement on using a kilometre rate for business running of a motor vehicle – deductions
  • OS 19/04b: Commissioner’s statement on using a kilometre rate for employee reimbursement of a motor vehicle

Legislation and determinations

General Determination DEP104: Tax Depreciation Rate for lay-flat hoses

Legal decisions – case notes

  • Taxation Review Authority considers whether the repayment of a loan can generate an input tax deduction
  • Court of Appeal confirms deductions for bad debts not available as operating a “Benevolence on the Conscience Loan Fund” not a money lending business
  • Unsuccessful strike-out application to Commissioner of Inland Revenue’s Property Law Act 2007 claim
  • Taxation Review Authority considers ‘taxable activity’ and entitlement to input tax deductions

Corrections

Taxation (Research and Development Tax Credits) Act 2019: the rationale provided for the exclusion applying to above market value good and services (Schedule 21B Part B Clause 17) at the bottom of page 28 has been clarified. 

It should read:

"This provision is intended to apply broadly, so applies to transactions with associates and third parties. The amount paid which exceeds the market value is not eligible expenditure".