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Remedial matters

Research and development deductions and GAAP

Amendments have been made to allow for the fact that currently there are two version of generally accepted accounting principles (GAAP) in use, colloquially known as IFRS (International Financial Reporting Standards) GAAP and "old" GAAP.

Cost of timber

Amendments have been made to align the rules relating to deductions for certain forestry expenditure with new generally accepted accounting principles (International Financial Reporting Standards GAAP) requirements.

Amendments to the life insurance taxation rules

Several changes have been made to the new rules for taxing life insurance business.

Attribution rule

Previous amendments allowed for certain non-qualifying companies to distribute their income using the qualifying company regime fully imputed or exempt rules. Section GB 27 has been amended to allow for the removal of the deemed credits that arise when a company attributes income to allow the qualifying company mechanism to work as intended.

Amendments to the rewritten portfolio investment entity rules

A number of remedial amendments have been made to the rewritten tax rules for portfolio investment entities. These amendments ensure that the rules achieve their intended policy effect.

Payroll giving remedials

Amendments have been made to ensure that the new payroll-giving scheme, which took effect from 7 January 2010, meets its original policy intent.

Resident withholding tax and intermediaries or agents

The amendments clarify the operation of the tax credit and resident withholding tax (RWT) rules in relation to amounts received by intermediaries or agents acting on behalf of a New Zealand resident with foreign investment fund (FIF) interests.

Binding rulings on the Income Tax Act 1994 and 2004

Previously Inland Revenue could not make a binding ruling for the period before the Income Tax Act 2007 came into effect if the application for the ruling was received by Inland Revenue after the beginning of the 2008-09 income year.

Making the requirement to pay tax in dispute a non-disputable decision

The exercise of the Commissioner's discretion to require payment of all tax in dispute has been made a non-disputable decision.

Definition of "associated persons" in the GST Act, and charitable bodies

Changes have been made to the definition of "associated persons" in the Goods and Services Tax Act 1985 to ensure that supplies to and by charitable and non-profit bodies do not give rise to a GST obligation when the donor or donee is associated with the body.

Gifts of money by company

An amendment has been made to ensure that the policy to remove the 5% limit on deductions for charitable donations made by companies applies from the intended date of 1 April 2008.

 

 


Date published: 28 Jun 2010

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