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Interpretation guidelines and interpretation statements: 2014
Interpretation guidelines discuss the Commissioner's approach to the interpretation of a general area of law where there are also taxation implications. For example, IG009: Employee or independent contractor? assists taxpayers to determine their employment status for tax purposes.
- Interpretation statements set out the Commissioner's view of the taxation laws in relation to a particular set of circumstances in cases when a binding public ruling cannot be issued or is considered to be inappropriate.
The table below lists interpretation guidelines and interpretation statements issued 2014 alphabetically by title.
IS 14/04 - Income tax - Deductibility of company administration costs
This interpretation statement considers whether a range of expenditure incurred by companies is deductible under the Income Tax Act 2007.
The expenditure is of a type incurred by companies as a result of their inherent nature and the regulatory environment applicable to them.
The costs considered include: audit fees, costs of meetings of shareholders, costs associated with paying dividends, fees for listing with registered exchanges, share registry costs, costs of filing statutory returns, and associated legal and accounting costs.
Date of issue: 10 June 2014
IS 14/04 - PDF format (363kb | 37 pages)
IS 14/03 - Income tax - Consumable aids
This Interpretation Statement replaces items in Public Information Bulletin No 51 and Tax Information Bulletin Vol 7 No 4 on the income tax treatment of consumable aids. It outlines what they are, when the costs are deductible and when expenditure needs to be added back as income. It also discusses the requirements of Determination E12 as they relate to consumable aid expenditure.
Date of issue: 9 June 2014
IS 14/03 - PDF format (146kb | 12 pages)
IS 14/02 - Income tax - foreign tax credits - What is a tax of substantially the same nature as income tax imposed under s BB 1?
This Interpretation Statement sets out the Commissioner’s view of how s YA 2(5) should be interpreted and applied. In particular, it identifies the characteristics that a foreign tax must have to be a tax "of substantially the same nature as income tax imposed under s BB 1".
Date of issue: 28 April 2014
IS 14/02 - PDF format (595kb | 44 pages)
IS 14/01 - Tax residence
This Interpretation Statement sets out the Commissioner’s view on the application of the tax residence rules for individuals, companies and trusts. The tax residence rules determine whether a person is assessable for tax on worldwide income or only on New Zealand-sourced income. New Zealand residents are assessable on worldwide income, and non-residents are assessable only on New Zealand-sourced income.
This statement updates and replaces the Public Information Bulletin on the residence rules – “Income Tax Amendment Act (No 5) Rules 1989: New Residence Rules” (Public Information Bulletin No. 180, June 1989). It also replaces a number of other smaller items concerning tax residence. The Interpretation Statement applies from 1 April 2014.
Date of issue: 6 March 2014
IS 14/01 - PDF format (960kb | 89 pages)
IS 14/01 - Tax residence - Transitional operational position
This transitional operational position relates to the recently published Interpretation Statement IS 14/01, which sets out the Commissioner's view on the application of the tax residence rules. There may be some situations in which the new Interpretation Statement gives a different result from the application of the earlier Public Information Bulletin No 180, June 1989.
If you have reached a view on your tax residence under the approach in PIB No 180 and are unsure about how the Interpretation Statement might affect you, this operational position and the Frequently Asked Questions will help. The FAQs provide practical examples of the application of this transitional operational position.
Date of issue: 6 March 2014
IS 14/01 - PDF format (60kb | 4 pages)