An extension to the Rollover relief under the brightline test has been made to provide relief to certain transfers of land to or from family trusts, look through companies, partnerships and within wholly owned, consolidated groups of companies, certain transfers of Maori Land and settlements under the Treaty of Waitangi. Additional amendments ensure that certain… Continue reading Roll-Over Relief – New Brightline Test
The Interest limitation will apply to a boarding house unless it qualifies as a boarding establishment for the purposes of Excepted Residential Land. It is important to note that a boarding establishment is different to a boarding house. A Boarding Establishment is defined as premises that: All of the above need to be satisfied in… Continue reading Interest Limitation & Boarding Houses
SOCIAL HOUSING Some may view this as an incentive to rent properties as social housing, especially where the agreement in place provides for full remediation of damages caused by the tenants. Another benefit of this option is the fact that the property investor will not need to fund the period between tenancies or deal with… Continue reading Interest Limitation Rules Also Do Not Apply To
Before the introduction of the interest limitation rules the largest proportion of deductions for residential property investors was the interest component. However, the Government has decided that residential property investors have an advantage over other occupiers because they can deduct their interest. This conveniently overlooks the fact that the deductions are being made against rental income. However, not… Continue reading Interest Limitation on Residential Land & Brightline Test
KILOMETRE RATE 2022 YEAR VARIATION TO TAX POOLING TRANSFERS COV22/15 Amendment has been made to clarify that the last date upon which a taxpayer can make a transfer request is 30 Sept 2022. See TIB Vol 34, No 4, May 22. DEEMED RATE OF RETURN For the 21/22 year has been set at 6.01% for purposes of… Continue reading Interest Rates Effective 01 July 2022
An Official Issues Paper “GST Apportionment and Adjustment Rules“ has been released recently by the IRD. It requests feedback on proposed changes to the vastly complicated rules. IRD acknowledges that current GST apportionment and adjustment rules are complex, have high compliance costs and that unexpected liabilities and compliance costs can arise because GST applies to private… Continue reading Changes to GST Apportionment
Earlier in the month the FEC reported back on this bill, which was introduced in late 2021 and included some more draconian measures such as changes to brightline rules and new interest limitation rules in relation to residential land and amendments to GST, etc. No major changes were proposed, however a few noteworthy changes were made:… Continue reading Taxation (Annual Rates for 2021-22, GST and Remedial Matters) Bill
The Income Tax Act 2007 has been amended by inserting a definition of clean vehicle discount scheme into s YA 1. Schedule 5 (which deals with the fringe benefit values of motor vehicles) has been amended to clarify that, for fringe benefit tax purposes, the cost of the motor vehicle in relation to which a… Continue reading Electric Vehicles & FBT
One would think that the Government has caused enough damage through tax measures targeting the residential property market such as the loss ring fencing rules, increased brightline period from 5 to 10 years, restriction on interest deductions and introduction of the 39% top marginal tax rate for individuals. In that case think again. Not only… Continue reading Another Blow by the Government Targeting the 39% Tax Avoidance
April 7 Terminal Tax for year ended 31 March 2021 May 7 GST payments & returns for Period ended 31 March 2022 March 2022
