Introducing a digital services tax

Well, it is apparent that the Government has lost its patience with the Organisation for Economic Co-operation and Development (OECD) and has decided to introduce its own digital services tax (DST). The comments from the Ministers of Finance and Revenue were that “It’s clear that the international tax framework hasn’t kept pace with changes in […]

Read more

Navigating cross-border related party borrowing rules in New Zealand

I will talk about the complexities of cross-border related party borrowing (specifically, the related-party loans between non-resident lenders and New Zealand resident borrowers) and the associated rules in New Zealand. I will simplify these rules by categorising them based on borrowing amounts…

Read more

Inland Revenue issues draft IS’s on GST grouping

Inland Revenue (IR) has recently issued two separate draft interpretation statements dedicated to the topic of group GST registration. The first IS is referenced PUB00322, “GST – who can group register?” The IS is a 66-page document, which covers: With respect to the first category, for there to be a group of companies that could […]

Read more

Gifts – when will they be assessable income?

Inland Revenue (IR) has issued a drafted interpretation statement titled, “Income tax: Income – when gifts are assessable income”. It is a 59-page document with an accompanying six-page fact sheet. The IS commences with the definition of a gift for the purpose of the statement as being the receipt of an amount in money or […]

Read more

FBT prescribed rate heads further north

Of little surprise, post the recent announcement that the UOMI rate was increasing to 10.91% effective 29th August 2023, the Fringe Benefit Tax (FBT) prescribed rate of interest on low-interest loans is also heading in the same direction, increasing from the present 7.89% to 8.41%, effective from the quarter commencing 1st October 2023. Grants & […]

Read more

UOMI rates increasing again

Understandable, I guess, when you reflect on what is happening with the official cash rate and Inland Revenue’s (IR) determination not to be treated as a bank, use of money interest rates will again increase effective 29th August 2023. The paying rate will increase from 10.39% to 10.91%, while the receiving rate will increase from […]

Read more

GST on court awards and out-of-court settlements

Inland Revenue (IR) has finalised its interpretation statement on the issue, with the release of IS 23/07 titled, “GST – Court awards and out-of-court settlements”. The basic premise is that payments are subject to GST if they are consideration for a supply made by the person receiving the award/settlement, which could be determined by applying […]

Read more

Disposal of Land:to be taxed or not to be taxed? Part two

This second article moves on to what I consider is second in the pecking order of what to think about for those who are dealing with land but are not themselves carrying on a business of land dealing, land development and/or subdivision, or of erecting buildings, and nor are they associated with any person carrying […]

Read more