Description: The COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 was enacted on 30 April 2020 and the COVID-19 Response (Further Management Measures) Legislation Act 2020 was enacted on 15 May 2020. The measures in these Acts are aimed at assisting the Government's response to the economic impacts of COVID-19. The Acts make changes to income tax, tax administration, primary industries, consumer protection and crown owned entity regulatory requirement measures

Description: The COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 was enacted on 30 April 2020 and the COVID-19 Response (Further Management Measures) Legislation Act 2020 was enacted on 15 May 2020. The measures in these Acts are aimed at assisting the Government's response to the economic impacts of COVID-19. The Acts make changes to income tax, tax administration, primary industries, consumer protection and crown owned entity regulatory requirement measures

Description: Businesses in New Zealand pay tax on their income when they are profitable. Under existing tax loss continuity rules, losses can be carried forward to reduce taxable income in future years. Loss carry-forwards and carry-backs are intended to prevent systematic over-taxation over time. If taxpayers always pay tax when they earn income, but never get relief when they have a loss, they will pay more than the statutory rate of tax over time. Loss carry-backs are one way to address this. The Government has also announced policy changes relating to the loss carry-forward rules, but these are not part of this Act.

Description: New sections 6H and 6I of the Tax Administration Act 1994 introduce a temporary discretionary power the Commissioner may use to provide flexibility for due dates, deadlines, time periods, timeframes or procedural and administrative requirements for taxpayers who are affected by COVID-19, making compliance with current tax obligations impossible, impractical, or unreasonable. The discretionary power is intended to provide the Commissioner with a timelier mechanism to assist taxpayers who encounter practical difficulties in complying with certain requirements under the Inland Revenue Acts, or under provisions in the Unclaimed Money Act 1971. The power is intended to supplement existing provisions already available to taxpayers affected by COVID-19. That is, where there is existing time flexibility provided in other provisions, these provisions will be used instead.

Description: The Income Tax Act 2007 and Tax Administration Act 1994 have been amended to ensure that payments made under the COVID-19 New Zealanders Stranded Overseas Support (NZSOS) Ministerial welfare programme in lieu of another payment normally payable under the Social Security Act 2018, New Zealand Superannuation and Retirement Income Act 2001, or Veteran's Support Act 2014 are subject to the same tax treatment as those payments.

Description: The Acts provide authorisation for the Commissioner to grant loans under the Small Business Cashflow Scheme (SBCS) and to administer the scheme on behalf of the Government. A further provision enables information sharing between Inland Revenue and the Ministry of Social Development for the purposes of the administration of the loan scheme.

Description: As part of the response to financial pressure on New Zealanders under COVID-19, the Government is increasing the threshold amount of individual income tax assessments written off from $50 to $200. This applies if the individual is subject to the rules in subpart 3B of the Tax Administration Act 1994 - commonly referred to as the auto-calculation rules.

Description: The Tax Administration (Direct Credit of Refunds of Amounts in Income Equalisation Accounts and Environmental Restoration Accounts) Order 2020 makes the direct credit of refunds for income equalisation and environmental restoration accounts mandatory from 23 July 2020. An Order in Council has been made to include refunds of amounts in income equalisation accounts and environmental restoration accounts as tax types refundable by direct credit under section 184A of the Tax Administration Act 1994.

Description: The fringe benefit tax (FBT) prescribed rate of interest for low-interest employment-related loans has been reduced from 5.26% to 4.50%.

Description: The deemed rate of return for taxing interests in foreign investment funds is 5.05% for the 2019-20 income year, down from 5.86% for the previous income year

Description: The Commissioner of Inland Revenue has, under the discretion provided under section 6I of the Tax Administration Act 1994, made the following statutory variation: Under s EI 1 of the Income Tax Act 2007, for a person to allocate timber income derived in an income year ending on a date between 25 March 2019 and 30 June 2019 to any one or more of the person's previous three income years, the date the application in writing must be received by the Commissioner is extended to 31 July 2020

Description: The Commissioner of Inland Revenue has, under the discretion provided under section 6I of the Tax Administration Act 1994, made the following statutory variation: For a statement in relation to R&D loss tax credits and R&D repayment tax for the 2019 tax year under s 70C of the Tax Administration Act 1994, the date by which that statement must be filed is extended to include a statement filed with the Commissioner on or before 31 August 2020.

Description: The Commissioner of Inland Revenue has, under the discretion provided under section 6I of the Tax Administration Act 1994, made the following statutory variation: The time period of 'more than 75% of the asset's estimated useful life' referred to in paragraph (b) of the definition of 'finance lease' in s YA 1 of the Income Tax Act 2007 is extended to 'more than 75% of the asset's estimated useful life plus an additional 18 months' where the term of the lease is extended between 14 February 2020 and 30 November 2020.

Description: The Commissioner of Inland Revenue has, under the discretion provided under section 6I of the Tax Administration Act 1994, made the following statutory variation: The time period of 'more than 75% of the asset's estimated useful life' referred to in paragraph (b) of the definition of 'finance lease' in s YA 1 of the Income Tax Act 2007 is extended to 'more than 75% of the asset's estimated useful life plus an additional 18 months' where the term of the lease is extended between 14 February 2020 and 30 November 2020.

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Description: This Statement sets out Inland Revenue's practice for accepting tax payments as having been received in time. With the influence of technology there has been a significant shift in practice to use digital methods for making tax payments. The Commissioner encourages customers to use direct banking facilities when they make tax payments.

Description: This statement applies where a private residence is included as part of a wider supply of land. Where this occurs, s 5(15) deems the residence to be a separate supply from the rest of the land. The separate supplies need to be considered independently for GST purposes. This statement uses the term 'residence' for the different types of premises mentioned in s 5(15).

Description: If you are a New Zealand tax resident who owns a foreign residential rental property, you need to be aware of the New Zealand tax issues that may arise as a result of that ownership. As a New Zealand tax resident, you may be required to pay tax in New Zealand on any income you receive from your foreign residential rental property. You may also be required to pay tax on the same income in the country where the property is located. Importantly, the way you calculate the rental income from your foreign residential property for New Zealand tax purposes may be different from the way you calculate it for foreign tax purposes. For example, the deductions you are entitled to claim, and the balance dates used may differ. You will also need to make sure you convert the foreign currency amounts into New Zealand dollars using the correct rates for the correct dates.

Description: If you are a New Zealand tax resident who has a foreign currency loan, you need to consider whether the loan is subject to the financial arrangements rules (FA rules). If the FA rules apply, they may affect the amount of expenditure you are deemed to incur, and you may be required to pay tax on deemed financial arrangement income as a result of an increase in the value of the New Zealand dollar.

Description: Article 10 of the New Zealand-Australia double tax agreement (the DTA) allows for different rates of non-resident withholding tax (NRWT) to be applied to dividends paid to a company. For a corporate payee, the applicable rate is reduced to five percent or zero percent if the payee holds more than a certain percentage of the voting shares in the payer. Previously, for the zero percent rate, the voting shares had to be held for a specified period (the holding period) prior to the date of declaration of a dividend.

Description: Owners of existing residential rental properties may incur expenditure to meet the Healthy Homes standards. This Question we've been asked (QWBA) discusses the tax treatment of such expenditure under the Income Tax Act 2007.

Description: Question Does a look-through company derive debt remission income when a close friend or family member of the shareholders forgives a loan made to the look-through company?

Description: The disputants, AB Limited ('ABL') and Y Z Limited ('YZL') were parties to tax arrangements known as the Russell template devised by the late John George Russell. The Commissioner of Inland Revenue ('the Commissioner') issued a refusal notice to each disputant under s 89K(4) of the Tax Administration Act 1994 ('the TAA') refusing to accept late notices of proposed adjustment ('NOPAs') as having been given within the applicable response period under Part 4A of the TAA. Both disputants have issued proceedings challenging the Commissioner's decision and the proceeded on the basis that the challenges are viewed as test cases for claims by other companies in the Russell template.

Description: The First Respondent, Waheedullah Faghriyar, and the company Discount Tyres and Mechanical Services Limited ('Discount Tyres') initiated the statutory disputes procedure under Part 4A of the TAA ('the dispute') with the Commissioner of Inland Revenue ('the Commissioner') while a criminal prosecution against the First Respondent ('the criminal case') was already on foot. The Commissioner held the dispute in abeyance until the criminal case was concluded in order to protect the First Respondent's fair trial rights causing an approximately two-year delay before the dispute could be restarted. Due to the delay, the Commissioner would not be able to issue a challenge notice concluding the dispute within the statutory time bar of four years. While the criminal case was on foot Discount Tyres was struck off the Companies Register ('the Register').