The Tax Information Bulletin is a monthly publication which contains information about changes to tax-related legislation, proposed legislation, judgments, rulings and other specialist tax topics.
The Privacy (Information Sharing Agreement between Inland Revenue and the Ministry of Social Development) Amendment Order 2026 makes changes to the approved information sharing agreement between Inland Revenue and the Ministry of Social Development.
The Privacy (Information Sharing Agreement between Inland Revenue and New Zealand Customs Service) Order 2026 approves a new information sharing agreement enabling Inland Revenue and the New Zealand Customs Service to securely match Working for Families recipient information with border movements. The Order comes into force on 1 April 2027.
Mainzeal [MZ} received funds from an insurer [QBE] for damage caused by four of MZ’s directors. The CIR considered the payment was subject to GST under s 5(13) GSTA because it was paid in relation “to a loss incurred in the course or furtherance of [MZ’s] taxable activity”. MZ argued it was not because the payment was not received “under a contract of insurance”.
The High Court considered the legislative history of s 5(13) GSTA to conclude MZ did receive the payment in relation “to a loss incurred in the course or furtherance of [MZ’s] taxable activity” and that it was subject to GST.
The plaintiff companies challenged the Commissioner’s decision not to direct them to account for GST on the invoice accounting basis under s 19A(2) of the Goods and Services Tax Act 1985 (GSTA).
The liquidator said he was required, under s 53(1)(cb) of the GSTA, to notify the Commissioner that the plaintiff companies had ceased to satisfy the requirements for payments basis and the Commissioner must therefore direct the companies to account for GST on an invoice basis.
The High Court held that s 19(3B) of the GSTA overrides or precludes the Commissioner frombeing required to give a direction under s 19A(2) and that the Commissioner must be satisfied at the time of notification that a registered person has ceased to satisfy the conditions in s 19A(1).
The Taxation and Charities Review Authority granted the disputant relief from the consequences of an unless order and reinstated her tax challenge. Although the non-compliance was serious, the Authority found it was not intentional or wilful and that maintaining the strikeout would be disproportionate and contrary to the overall interests of justice.
This item summarises a private ruling that considered whether the proceeds from an insurance company’s sale of properties are income to the company.
