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Uiuinga tūmatanui

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Public consultation

Consultation on draft items

We focus on producing items that accurately and fairly reflect taxation legislation, and are useful in practical situations. Your input into the process is highly valued.

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Currently consulting on

Let us know what you think about our drafts. Are they technically accurate? Do they fairly reflect taxation legislation? Are they in line with commercial reality and useful in practical situations?


ED0188: Disputes resolution process commenced by a taxpayer

This draft standard practice statement sets out the Commissioner’s and taxpayer’s rights and responsibilities in the disputes resolution process. It should be noted that a full review of SPS 11/06 has not been undertaken. This update has only been done to reflect minor amendments to "response period" as defined in the Tax Administration Act 1994 ("The TAA"), and also the introduction of the new communications framework contained in sections 14 to 14G of the TAA. As such, any feedback that is not related to this issue will not be considered as part of this update.

Comment deadline: 12 August 2016

ED0188 - PDF format (552kb | 55 pages)


ED0187: Disputes resolution process commenced by the Commissioner of Inland Revenue

This draft standard practice statement sets out the Commissioner’s and taxpayer’s rights and responsibilities in the disputes resolution process. It should be noted that a full review of SPS 11/05 has not been undertaken. This update has only been done to reflect minor amendments to "response period" as defined in the Tax Administration Act 1994 ("The TAA"), and also the introduction of the new communications framework contained in sections 14 to 14G of the TAA. As such, any feedback that is not related to this issue will not be considered as part of this update.

Comment deadline: 12 August 2016

ED0187 - PDF format (562kb | 54 pages)


PUB00276: Updated “permanent place of abode” extract from IS 14/01 – tax residence

As a result of the Court of Appeal decision in CIR v Diamond [2015] NZCA 613, part of Interpretation Statement IS 14/01 is being updated. The updated section concerns one of the tax residence tests for individuals – the “permanent place of abode” test in s YD 1(2). The key aspect that has changed as a result of the Diamond decision is the emphasis on the nature and quality of the use a person habitually makes of their place of abode in New Zealand.

Comment deadline: 10 August 2016

PUB00276 - PDF format (658kb | 19 pages)


PUB00220: Income tax – date of acquisition of land

This item deals with the issue of when land is acquired under s CB 15B. The item concludes that what is relevant is when the first interest in the land (ie, the particular estate) that is being disposed of was acquired. This will typically be when a binding sale and purchase agreement is entered into (even if subject to conditions). Where land is acquired by way of an option, the date of acquisition will be when the option is exercised. The item also looks at when the 2-year period for the bright-line test starts, which is generally not the same date as the date land is acquired under s CB 15B.

This item has previously been consulted on (from 6 August – 17 September 2015), but is being re-consulted because of changes made following a recent legislative amendment to s CB 15B and the introduction of the 2-year bright-line test.

Comment deadline: 10 August 2016

PUB00220 - PDF format (262kb | 16 pages)


IRRUIP9: Donee organisations – clarifying when funds are applied wholly or mainly to specified purposes within New Zealand

This issues paper foreshadows a possible change in Inland Revenue’s current practice for donee organisations. While presenting Inland Revenue’s preliminary but considered views, it does not present any fixed or final views.

The issues paper examines the “donee organisation” requirements of the Income Tax Act 2007, and is particularly relevant to organisations that apply some of their funds to purposes outside of New Zealand. This is because donee organisations must “wholly or mainly” apply funds to certain specified purposes within New Zealand. Inland Revenue currently accepts that this requirement is met where 51% or more of the funds are applied within New Zealand. The issues paper suggests a higher threshold should apply which, although no exact figure has been set, could be as much as 90% or more.

If the current practice was to change it would apply prospectively. Organisations unable to satisfy the “wholly or mainly” requirement under any new higher threshold may have alternatives (discussed in the issues paper) if they wish donors to continue to be eligible for tax benefits.

The issues paper also considers how the extent to which an organisation has applied funds to specified purposes is calculated and confirms that applying funds to specified purposes within New Zealand does not limit an organisation to spending funds within New Zealand.

Comment deadline: 29 July 2016

IRRUIP9 - PDF format (443kb | 30 pages)


PUB00228: Goods and Services Tax – single supply or multiple supplies

This draft Interpretation Statement explains how to determine whether a supply with multiple elements is a single composite supply or multiple separate supplies. The approach taken is presented in a useful flowchart. It considers the relevant case law and identifies the main principles that should be considered when determining whether a supply is a single composite supply or multiple separate supplies. It then applies these principles to four examples.

Comment deadline: 29 July 2016

PUB00228 - PDF format (383kb | 20 pages)


PUB00218: Income tax - foreign tax credits - how to claim a foreign tax credit where the foreign tax paid is covered by a double tax agreement

This draft interpretation statement explains how to claim a foreign tax credit when a foreign tax is covered by a double tax agreement.

The item includes a flowchart, which gives an overview of the foreign tax credit rules and the potential outcomes for taxpayers when a foreign tax is covered by a DTA, and when it is not.

A two page fact sheet is available at the end of the draft interpretation statement.

Comment deadline: 29 July 2016

PUB00218 - PDF format (711kb | 51 pages)


ED0186: Payment of Shortfall Penalty Using Losses, draft Standard Practice Statement

Section IW 1 of the Income Tax Act 2007 allows a taxpayer to use tax losses in payment of a shortfall penalty imposed on an income tax liability This draft Standard Practice Statement sets out the Commissioner’s application of section IW 1.

Comment deadline: 15 July 2016

ED0186 - PDF format (67kb | 4 pages)


Providing feedback on draft items

You can email your comments to us at public.consultation@ird.govt.nz  This email address is only for providing feedback on public drafts.

For all other feedback, please use our Comments and feedback form

If you wish to post us your comments, send them to:

Team Manager, Technical Services
Office of the Chief Tax Counsel
National Office
Inland Revenue Department
PO Box 2198
Wellington

Related links

Expired draft items 
Public consultation process 
Public Rulings work programme

 

 

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