This operational statement outlines a change of view by the Commissioner and sets out the approach that the Commissioner will be taking after changing his view on whether cash collateral provided as part of security lending and derivative transactions is “money lent”. The Commissioner’s view now is that interest arising on cash collateral may therefore be subject to obligations to withhold resident withholding tax (RWT) or non-resident withholding tax (NRWT).

This determination sets criteria for when a person who supplies accommodation through an electronic marketplace (an underlying supplier) can enter into an opt-out agreement with the operator of an electronic marketplace. The determination is made under section 60C(2BC) of the Goods and Services Tax Act 1985. 

The determination applies for taxable periods starting on or after 1 April 2025 and ending on or before 31 March 2028.

Income tax: income, capital/revenue, capital contribution property

GST input tax deductions, taxable activity, taxable supplies, GST registration

This interpretation statement considers what an employee share scheme is, including the exclusions to the definition. The statement then explains when the share scheme taxing date arises and when shares are held by or for the benefit of an employee. It also covers the circumstances when the share scheme taxing date may be deferred. Finally, it addresses how benefits are apportioned when some of the employee’s entitlement arises when they are non-resident.

Income tax and GST input tax deductions: Whether expenditure incurred by the Taxpayer on educational courses, motor vehicle costs, home office costs, power, insurance, rent, advertising, website, eftpos, and stock was deductible.

Output tax deductions for indemnity payment under a deed, shortfall penalties

New legislation

• SL 2024/254: Taxation (Use of Money Interest Rates) Amendment Regulations 2024

Determinations

• FDR 2025/01: Determination under section 91AAO of the Tax Administration Act 1994 that investors in JPM Aggregate Bond-NZD Hedged Dividend Class X Shares may not use the fair dividend rate method to calculate FIF income 
• FDR 2025/02: Determination the fair dividend rate method may not be used to calculate FIF income by investors in the iShares Core Global Aggregate Bond UCITS ETF–NZD hedged (Accumulating) share class

Interpretation statement

• IS 25/03: Income tax – identifying the relevant item of property for depreciation purposes

Case summary

• CSUM 25/04: Commissioner of Inland Revenue v Kaur

Technical decision summary

• TDS 25/01: Sale of leasehold interests in residential and commercial units

2025 determination lists the national standard costs for specified livestock.

The proposed financing arrangement is to fund the refurbishment of a capital asset. The Applicants were two companies that were unable to source finance from traditional bank lending or by way of supplier financing.