TIB - May 2001

Binding rulings

• Public Ruling – BR Pub 01/03: Rent deemed to be payable – deductibility
• Public Ruling – BR Pub 01/04: Assessability of payments under the Employment 8 Relations Act for humiliation, loss of dignity, and injury to feelings

New legislation

• Tax implications of the Property (Relationships) Amendment Act 2001
• No tax on ex-gratia payments to Japanese ex-prisoners of war and civilian internees
• Taxation (Beneficiary Income of Minors, Services-related Payments and Remedial Matters) Bill
• Order in Council – The Goods and Services Tax (Local Authorities Accounting on Payments Basis) Order 2001 (SR 2001/85)

Questions we’ve been asked

• Cash prizes in sporting competitions – GST implications for organising club: Sections 5(10) and 10(14), Goods and Services Tax Act 1985 – supply where game of chance etc

Legal decisions – case notes

• Whether sale of vessel attracted GST – judicial review: Simunovich Fisheries Ltd v CIR and Owen Joseph Knock
• Whether award for loss of wages and benefits was assessable, whether legal expenses deductible: Derek Earl Cleland v CIR
• Whether supply of repair services under warranty agreement zero-rated for GST: Suzuki New Zealand Ltd v CIR
• Whether legal fees in respect of personal grievance actions were deductible: TRA Number 00/026. Decision Number 4/2001
• Whether incentive payment is emolument of service and assessible: CIR v Darryl Kerslake
• Whether loss incurred on the sale of shares was deductible: TRA Number 001/00. Decision Number 3/2001
• Properties applied for non-taxable purpose: CIR v Carswell Investments Co Ltd