Residency; income tax deductions; GST input tax deductions; shortfall penalties

The establishment of a limited partnership to hold the shares in a holding company. The long-form amalgamation of the holding company and one of its subsidiaries under Part 13 of the Companies Act 1993, with the subsidiary remaining as the amalgamated company. The distribution by the holding company of cash and shares in subsidiary companies on amalgamation as consideration for the cancellation of its shares.

 

New legislation

• LI 2024/189 Tax Administration (GST Adjustment Rules) Modification Order 2024

Rulings

• BR Prd 24/02 and BR Prd 24/03: WorkRide Limited

Interpretation statement

• IS 24/07: Deductions for parties to employee share schemes

Commissioner’s statement

• CS 24/02: Withholding obligations arising in relation to transfer pricing arrangements

Question we’ve been asked

• QB 24/5: Do supplies of standing timber and other unsevered crops wholly or partly consist of land for the compulsory zero-rating rules?

Technical decision summary

• TDS 24/17: Deductibility of bonus payments

Case summary

• CSUM 24/06: High Court issues a 28-day temporary halt of Commissioner’s bankruptcy proceedings pending payment of sum

This interpretation statement considers what income is from a business and the extent to which business income a charitable entity derives is exempt from tax under s CW 42.

This fact sheet accompanies interpretation statement ‘IS 24/08: Charities – Business income exemption’. IS 24/08 provides guidance on when business income a registered charity derives is exempt from tax under s CW 42 of the Income Tax Act 2007.

New legislation

• SL 2024/154– Order in Council Double Tax Agreements (Slovak Republic) Order 2024
• SL 2024/153 – Order in Council Double Taxation Relief (Austria) Amendment Order 2024

Legislation and determinations

• DET 24/03: Determination under section RD 11(3) of the Income Tax Act 2007 of the amount of tax for a payment of a main benefit

Interpretation statements

• IS 24/05: Employer obligations for employee share scheme benefits paid in cash
• IS 24/06: PAYE – How an employer funds the tax cost on an employee share scheme benefit

Commissioner’s statement

• CS 24/01: Determining the “market value” of shares that an employee receives under an employee share scheme

Standard practice statements

• SPS 24/01: Requests to change a balance date
• SPS 24/02: Extension of time applications from customers without tax agents

Technical decision summaries

• TDS 24/15: GST – payment for participation in religious practice
• TDS 24/16: Look-through company election

This Commissioner’s statement sets out the Commissioner’s position and operational approach in relation to the withholding obligations that may arise in relation to transfer pricing arrangements.

Tax Information Bulletin - Vol 36 No 9, October 2024

The High Court found in favour of the Commissioner, confirming assessments made in relation to income tax returns for the years ending 31 March 2018 and 2019 disallowing deductions claimed by Mr and Mrs Lawrence (together the plaintiffs) for remediation work on their Tauranga rental property. The Commissioner considered the payments were capital in nature and made assessments on that basis. The High Court found the evidence supported the Commissioner’s position and the plaintiffs had not satisfied their onus to show the assessments were wrong and by how much.

This was an application by Mr McGuire, the judgment debtor, to halt bankruptcy proceedings against him, brought by the Commissioner of Inland Revenue (the Commissioner) on 1 March 2023.

Tax Information Bulletin - Vol 36 No 9, October 2024

This interpretation statement considers what deductions employers can claim for income tax in relation to employee share schemes. It explains the need to satisfy the general permission and when the capital limitation might apply.

Tax Information Bulletin - Vol 36 No 9, October 2024