Vol 32 No 7
Issued
03 Aug 2020

TIB - August 2020

New legislation

  • COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020
  • COVID-19 Response (Further Management Measures) Legislation Act 2020
  • Tax Administration (Write Off Amount) Order 2020
  • Tax Administration (Direct Credit of Refunds of Amounts in Income Equalisation Accounts and Environmental Restoration Accounts) Order 2020
  • Income Tax (Fringe Benefit Tax, Interest on Loans) Amendment Regulations 2020
  • Income Tax (Deemed Rate of Return on Attributing Interests in Foreign Investment Funds, 2019–20 Income Year) Order 2020

Legislation and determinations

  • COV 20/06: Variation to section EI 1 of the Income Tax Act 2007
  • COV 20/07: Variation in relation to s 70C of the Tax Administration Act 1994 to extend deadline for filing statements in relation to R&D loss tax credits
  • COV 20/08: Variation in relation to the definition of “finance lease” in s YA 1 of the Income Tax Act 2007
  • FX 20/01: Approval - foreign residential rental property amounts - currency conversion

Public Rulings

  • BR Pub 20/01-20/05: Investing into a US Limited Liability Company – NZ tax consequences
  • BR Pub 20/06: Income tax and Goods and Services tax – Director’s liability and the COVID-19 “safe harbour” in schedule 12 to the Companies Act 1993
  • BR Prd 19/03: StockCo Limited - Notice of Withdrawal

Standard practice statement

  • SPS 20/04: Tax payments - when received in time

Interpretation statement

  • IS 20/05: GST - Supplies of residences and other real property
  • IS 20/06: Income tax - Tax issues arising from ownership of foreign residential rental property
  • IS 20/07: Application of the financial arrangements rules to foreign currency loans used to finance foreign residential rental property

Commissioner’s statement

  • CS 20/03: NRWT for dividends paid to companies: Administering the new holding period tests in Article 10 of the NZ/Australia DTA (and in agreements with other countries)

Questions we’ve been asked

  • QB 20/01: Can owners of existing residential rental properties claim deductions for costs incurred to meet Healthy Homes standards?
  • QB 20/02: Income tax – Natural love and affection exception to debt remission income for look-through company

Legal decisions – case summaries

  • AB Limited and Y Z Limited v Commissioner of Inland Revenue - Company restored to the Register and Commissioner granted an extension to issue Challenge Notice