Technical tax area: Public rulings
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Inland Revenue issues public rulings to interpret how a tax law applies to taxpayers and specific types of arrangements. Taxpayers whose circumstances match those in a ruling may apply it, but are not obliged to do so.
If you calculate your tax liability according to an applicable public binding ruling, we must assess your tax according to that ruling. A public ruling applies only to the particular taxation law and arrangement set out in the ruling, and only for a specified period. If there is any material difference between the facts in the ruling and your actual arrangement, the ruling does not apply.
Public rulings are issued by the Office of the Chief Tax Counsel (OCTC) business group of Inland Revenue. If you have any inquiries about public rulings, please contact our Technical Services team.
All the public rulings issued to date for the current year are displayed here by year, number (BR Pub), title, and status.
Interest repayments required as a result of the early repayment of a financial arrangement - deductibility
This item considers the situation when a term deposit arrangement is broken early and a reduced rate of interest is applied from the date of deposit as a consequence of the break. This results in the overpayment of interest to the depositor under the term deposit. The depositor is required to repay the overpaid interest. This item considers the deductibility of the interest repaid and the treatment of the interest repaid under the financial arrangements rules.
Ruling applies from: A three year period beginning on 16 December 2010 and ending on 16 December 2013
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Current status: Expires 16/12/13
BR Pub 10/21 - RTF format (240kb | 20 pages)
BR Pub 10/21 - PDF format (89kb | 20 pages)
Deductibility of break fee paid by a landlord to exit early from a fixed interest rate loan on sale of rental property
This public ruling considers the deductibility of a break fee paid by a landlord to a lender to exit early from a fixed interest rate loan used to purchase a rental property, in order to sell the property and therefore cease deriving rental income from it.
Ruling applies from: the first day of the 2008/09 income year to the last day of the 2011/12 income year
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Current status: Expires 2011/12 income year (under review)
BR Pub 10/20 - RTF format (134kb | 9 pages)
BR Pub 10/20 - PDF format (51kb | 9 pages)
Interest deductibility - Roberts and Smith - Borrowing to replace and repay amounts invested in an income earning activity or business
These six public rulings are a reissue of public rulings BR Pub 07/04 - 07/09. They address the deductibility of interest when borrowed funds replace funds invested in an income earning activity or business, and the original funds are repaid to the investor. The rulings are contained in a single document with a combined commentary.
Ruling applies from: 23 May 2010 to 23 May 2015
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Current status: Expire 23/5/15
BR Pub 10/14 - 10/19 - RTF format (396kb | 40 pages)
BR Pub 10/14 - 10/19 - PDF format (172kb | 40 pages)
Local authority rates apportionments on property transactions where the rates have been paid beyond settlement or are in arrears - goods and services tax implications for vendor and purchaser
These 4 rulings address the question of how apportionments of local authority rates made in property transactions should be treated for GST. BR Pub 10/10 and 10/11 apply to situations where the rates have been prepaid by the vendor beyond settlement. BR Pub 10/12 and 10/13 apply to situations where the local authority rates for the property are in arrears on the settlement date and the parties have agreed that the purchaser will pay the outstanding amount, in exchange for a credit against the settlement amount for the vendor's share of the outstanding amount.
Ruling applies from: 23 September 2010 to 23 September 2015
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Current status: Expire 23/9/15
BR Pub 10/10 - 10/13 - RTF format (672kb | 26 pages)
BR Pub 10/10 - 10/13 - PDF format (107kb | 26 pages)
Legal services provided to non-residents relating to transactions involving land in New Zealand
This ruling considers the GST position when certain legal services are provided by a registered person to a non-resident at a time when the non-resident is not present in New Zealand. It sets out a number of legal services which are zero-rated pursuant to section 11A(1)(k) of the GST Act 1985.
Ruling applies from: 23 May 2010 to 23 May 2015
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Current status: Expire 23/5/15
BR Pub 10/09 - RTF format (180kb | 12 pages)
BR Pub 10/09 - PDF format (63kb | 12 pages)
Commissions received by life agents on their own policies and those of associated persons - income tax implications / Discounted premiums on life insurances policies provided to life agents and associated persons - fringe benefit tax implications
These rulings consider the income tax treatment of commissions received by life agents on their own life insurance policies and associated persons, and the fringe benefit tax treatment of discounted life insurance policies received by life agents and associated persons. They are re-issues of public rulings BR Pub 00/01 and BR Pub 00/02, which expired on 31 December 2004.
Ruling applies from: The first day of the 2008-09 income year for an indefinite period
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Current status: Indefinite
BR Pub 10/07 - 10/08 - RTF format (184kb | 17 pages)
BR Pub 10/07 - 10/08 - PDF format (88kb | 17 pages)
Meaning of "anything occurring on liquidation" when a company requests removal from the register of companies
This ruling is a re-issue of public ruling BR Pub 05/14, which expired on 31 December 2008. It considers the meaning of "on liquidation" in the context of short form liquidations under the Companies Act, i.e. when a company requests removal from the register of companies; section 318(1)(d).
Ruling applies from: 1 January 2009 to 31 December 2014
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Current status: Expires 30/12/14
BR Pub 10/06 - RTF format (157kb | 7 pages)
BR Pub 10/06 - PDF format (44kb | 7 pages)
Australian source income earned by Australian limited partnership and foreign tax credits / Distributions made by Australian limited partnership and foreign tax credits / Distributions made by Australian unit trust to Australian limited partnership and foreign tax credits / Franked dividend received by Australian limited partnership and foreign tax credits / Tax paid by an Australian limited partnership as a "head company" and foreign tax credits
These five public rulings deal with the ability of a New Zealand resident partner of an Australian limited partnership to claim foreign tax credits in respect of two forms of Australian tax, including Australian company tax, paid on income earned by an Australian limited partnership. They do not consider any other situations involving foreign income and foreign tax paid.
Ruling applies from: The period beginning on the first day of the 2009-10 income year and ending on the last day of the 2012-13 income year.
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Current status: Expires 2012/13 income year
BR Pub 10/01 - 10/05 - RTF format (1.77MB | 24 pages)
BR Pub 10/01 - 10/05 - PDF format (247kb | 24 pages)
Deductibility of break fee paid by a landlord to exit early from a fixed interest rate loan / Deductibility of break fee paid by landlord to vary the interest rate of an existing fixed interest rate loan
These two public rulings consider the deductibility of a break fee paid by a landlord to a lender to exit early from, or vary the interest rate of, a fixed interest rate loan. The rulings have been combined in a single document with a joint commentary.
Ruling applies from: 1 April 2008 to 31 March 2012
Current status: Expires 2011/12 income year (under review)
BR Pub 09/09 and 09/10 - RTF format (176kb | 14 pages)
BR Pub 09/09 and 09/10 - PDF format (90kb | 14 pages)
"Cost price of the vehicle" - meaning of the term for fringe benefit tax purposes
This ruling considers what is included in the "cost price" of a motor vehicle for fringe benefit tax purposes. It replaces public ruling BR Pub 03/06 published in Tax Information Bulletin Vol 15, No. 9 (September 2003).
Ruling applies from: 1 November 2008 for an indefinite period
Current status: Indefinite
BR Pub 09/08 - RTF format (272kb | 16 pages)
BR Pub 09/08 - PDF format (106kb | 16 pages)
Provision of benefits by third parties - fringe benefit tax consequences - section CX 2(2)
This ruling considers the application of section CX 2(2) of the Income Tax Act 2007 to the receipt of a benefit by an employee from a third party where there is an arrangement between the employer and the third party, and where the benefit would be subject to FBT if it had been provided by the employer. This is a reissue of Public Ruling BR Pub 04/05, published in Tax Information Bulletin Vol 16, No 5 (June 2004), which applied for the period from 20 May 2004 until 19 May 2007.
Ruling applies from: the period beginning on the first day of the 2008/09 income year and ending on the last day of the 2013/14 income year.
Current status: Expires 2013/14 income year
BR Pub 09/07 - RTF format (321KB | 24 pages)
BR Pub 09/07 - PDF format (116KB | 24 pages)
Lease surrender payments received by a landlord - income tax treatment
This ruling addresses the issue of whether a lease surrender payment received by a landlord in the business of leasing property is (a) income under section CB 1(1) as an amount derived from a business, or (b) income under sections CC 1(1) and CC 1(2) as an amount derived from a lease by the owner of land.
Ruling applies from: The first day of the 2008/09 income year for an indefinite period
Current status: Indefinite
BR Pub 09/06 - RTF format (143kb | 16 pages)
BR Pub 09/06 - PDF format (71kb | 16 pages)
Fishing quota - secondhand goods input tax credits / Coastal permits and certificates of compliance - secondhand goods input tax credits
BR Pub 09/04 and 09/05 are reissues of BR Pub 03/07 and 03/10 respectively. BR Pub 09/04 considers whether a secondhand goods input tax credit is available to a GST-registered person when they purchase fishing quota from an unregistered person (the term "fishing quota" includes individual transferable quota and annual catch entitlements under the Fisheries Act 1983 and Fisheries Act 1996). BR Pub 09/05 considers whether a secondhand goods input tax credit is available to a GST-registered person when they purchase coastal permits or certificates of compliance from an unregistered person.
Ruling applies from: 13 November 2006 to 30 June 2014
Current status: Expire 30/06/14
BR Pub 09/04 and BR Pub 09/05 - RTF format (259kb | 26 pages)
BR Pub 09/04 and BR Pub 09/05 - PDF format (162kb | 26 pages)
Charitable organisations and fringe benefit tax
This ruling addresses the issue of when the charitable organisations exclusion from fringe benefit tax in section CX 25 of the Income Tax Act 2007 will apply. The ruling and commentary discuss what activities are non-charitable activities of a charitable organisation, and what it means for a benefit to be provided "mainly in connection with" a non-charitable business activity.
Ruling applies from: The first day of the 2008/09 income year for an indefinite period
Current status: Indefinite
BR Pub 09/03 - RTF format (168kb | 13 pages)
BR Pub 09/03 - PDF format (86kb | 13 pages)
Federal Insurance Contributions Act (FICA) - fringe benefit tax (FBT) liability
This ruling considers whether contributions paid under the US Federal Insurance Contributions Act (FICA) by an "American employer" who employs a US citizen in New Zealand could be subject to FBT.
Ruling applies from: 1 July 2009 for an indefinite period
Current status: Indefinite
BR Pub 09/02 - RTF format (170KB | 13 pages)
BR Pub 09/02 - PDF format (72KB | 13 pages)
Payments made by parents of guardians or students to state schools - GST treatment
This ruling is a re-issue of an expired public ruling that was issued in 2003 and expired in 2006. The ruling addresses the GST treatment of payments made by the parents or guardians of pupils who are New Zealand citizens or residents and who are enrolled at state schools (including schools integrated with the state system of education under the Private Schools Conditional Integration Act 1975) to the Boards of Trustees of such schools.
Ruling applies from: 21 June 2006 to 20 June 2013
Current status: Expires 20/06/13
BR Pub 09/01 - RTF format (290kb | 17 pages)
BR Pub 09/01 - PDF format (97kb | 17 pages)
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Date published: 14 Apr 2010
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