IRD has released a draft interpretation statement PUB00520 on what constitutes a payment for GST purposes. Deadline for comment is 10 September 2025. When it comes to GST, “payment” can mean more than just handing over cash. Whilst payment is not defined by the Act, it is not entirely dependent on the physical passing of… Continue reading Meaning Of “Payment” for GST Purposes?
Inland Revenue has issued Technical Decision Summary TDS 25/13, addressing how land transfers within a consolidated tax group are treated under the Income Tax Act 2007. The ruling confirms that certain land sales by entities within a consolidated group do not give rise to taxable income under sections CB 6 and CA 1(2), provided the transactions meet specific criteria. Background:… Continue reading Transfers of Land Within a Consolidated Group Clarified
As promised the new Government has increased the personal tax thresholds which have not been changed for over a decade. With effect from the 31st July those thresholds are as follows: Tax Rate Old Threshold New Threshold 10.5% $14,000 $15,600 17.5% $14,001 – $48,000 $15,601 – $53,500 30% $48,001 – $70,000 $53,501 – $78,000 33%… Continue reading Changes to Personal Income Tax Thresholds
The Government’s Mini Budget contains proposals to reduce the Brightline Test from 10 years to 2. Whilst no legislation has been introduced just yet, the understanding is that the 2-year Brightline Period will apply for land disposed of after 01 July 2024. The Budget also proposes to remove the deduction for commercial property depreciation. These… Continue reading Mini Budget and Taxation of Land
07 Oct 2022 Christchurch Barrister, has been sentenced to 5 months home detention for failing to file 22 GST and 11 income tax returns. Total GST in question $224,850 03 Oct 2022 A Christchurch man, who was previously self-employed, was jailed for almost 3 years for filing 49 fraudulent GST returns. Total GST in question $768,507.99 06 Sept… Continue reading Recent Tax Cases
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 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
On 12th August 2022 the Government announced a new policy which will provide tax incentives for developers for long term rentals also referred to as built to rent properties. The tax incentives will include an exemption from interest limitation rules for developers for newbuilt as well as existing properties. In order for development to qualify for the… Continue reading Tax Incentives for Developers and Subsequent Owners to Boost Long-Term Rentals
