OTHER NOTICES Delays in response times by IRD. It was brought to our attention that it is taking longer than usual to answer calls, and correspondence. We have been advised that the IRD is facing an unprecedented volume of calls. If you are trying to get in touch with IRD with not much luck, let… Continue reading BR PUB22/06 – FBT: Charitable and Other Donee Organisations
For a statement in relation to R&D loss tax credit and R&D repayment tax for 2021 tax year under s 70C of the Tax Adminsitration Act 1994, the date by which the statement must be filed has been extended to 31 August 2022. Subject to the following: August 2022
The new loss carry forward rules are contained in s IB3 of ITA07. The new rules provide that a tax loss may be carried forward from the 2020/21 income year, despite an ownership continuity breach, provided that there is no major change in the nature of the business activities carried on by the company, during… Continue reading Loss Carried Forward – PUB00376
Transfers of land will give rise to considerations of the application of the Brightline Test. IS 22/03 is a usefull interpretation statement in this regard, which we briefly digressed in our July Newsletter. What is disconcerning is the IRD’s view that : There is a disposal when the parties proportional interest change. An example would… Continue reading IS22/03 – Land Sale Rules & Co-Ownership Changes
The Crown FAP (Financial Assistance Payments) to the taxpayer are gratuitous payments to encourage or promote the repair of leaky buildings. Accordingly, the payments are in the nature of a grant or a subsidy for the purposes of s 5(6)D of the Goods and Services Tax Act and consequently subject to GST. August 2022
In cases where importers overpay GST to the NZ Customs Services (Customs) they can claim the full amount of GST payment in their GST return. QB 22/04 confirms that Customs is prevented from refunding overpaid GST where the importer is a registered person who can claim a GST input tax deduction. Consequently, a proper mechanism… Continue reading QB 22/04 – GST: Importers & GST
An exposure draft PUB00341 was recently issued by the IRD in relation to payments made by parents to private schools. Whilst this is still a discussion document the submissions are due by 26th September. The exposure draft in essence states the following: Where the school provides boarding services special rules apply for the purposes of GST.… Continue reading Fees vs Donations GST & Income Tax
UOMI rates increase Effective 30 August 2022, UOMI rates will increase as follows: FDR Determination An investment by a NZ resident investor in units in the Two Trees Global Equity Macro Fund – Class Z, to which none of the exemptions in section EX 29 to 43 of the Income Tax Act 2007 apply, is… Continue reading Bits & Pieces
On 14 Jun 2022 IRD released an interpretation statement IS 22/03. This statement confirms that for ownership change to be effected a complete alienation of property must be made. In other words one persons loses the ownership of the land and another person gains a corresponding interest in that land. In summary: OTHER NOTICES In case… Continue reading Application of the Land Sale Rules to Co-Ownership Changes and Changes in Trustees
NEW BUILD As mentioned before, for a New Build to qualify as such the land must be acquired no later than 12 months after it receives CCC. Whilst this may seem straightforward, one must be mindful of the 12 month period for example when acquiring already constructed homes or spec homes as the New Build… Continue reading Brightline Test – Few More Things
