Questions we've been asked: General issues

Are tax sparing disclosures still required?

Some New Zealand double taxation agreements allow a taxpayer to claim a domestic credit for tax which the agreement deems to have been paid in the other country. New Zealand has, or has had, tax sparing arrangements with the following countries:

• China
• Fiji
• India
• Republic of Korea
• Malaysia
• Philippines (terminated)
• Singapore
• Thailand (terminated).

A taxpayer who has claimed a foreign tax credit in respect of a tax sparing arrangement under a double taxation agreement must file a Tax sparing disclosure return (IR 486). A separate disclosure return is required for each tax spared arrangement entered into.

There has been a recent procedural change. The completed forms are now to be sent to:

• Manager, International Revenue Strategy
  Inland Revenue Department
  PO Box 2198
  Wellington 6140

Other pages in: General issues

• QB 12/11: Income tax - look-through companies, rental properties and avoidance
• QB 12/10: Do the historic depreciation rates continue to apply to grandparented structures acquired before 1 April 2005?
• QB 12/09: Income tax - look-through companies: interest deductibility where funds are borrowed to make a payment to shareholders to reflect an asset revaluation
• QB 12/08: Income tax - look-through companies: interest deductibility on funds borrowed to repay shareholder current accounts
• QB 12/04: Income tax - deductibility of expenditure on widening or metalling a farm acess road or track
• QB 12/03: Income tax - deductibility of expenditure on cattle stops
• QB 12/05: Income tax - deductibility of expenditure on stock yards
• QB 12/02: Income tax - Treatment of quad bikes for depreciation purposes
• QB 12/01: Income tax - deductibility of expenditure on replacing and extending an inlet race to a dairy shed
• QB 11/03: Income tax - look through companies and interest deductibility
• QB 11/02: Deductibility of expenditure incurred by bloodstock breeders in respect of horses that they race
• QB 11/01: Residential investment property or properties in Australia owned by New Zealand resident - NRWT treatment of interest paid to Australian financial institution
• QB 09/06: GST - Apportionment of the cost of bare land for the purposes of a change-in-use adjustment
• QB 10/06: Elections for qualifying company status
• QB 10/01: Reimbursing shareholder-employees for motor vehicle expenses and the use of the Commissioner's mileage rate
• QB 09/05: Residential investment property or properties in Australia owned by New Zealand resident - NRWT treatment of interest paid to Australian financial institution
• QB 09/03: Decisions on application of CA 1(2) - common law interest and income under ordinary concepts
• QB 09/02: Holiday houses - income tax treatment
• QB 09/01: Payments made in addition to financial redress under Treaty of Waitangi settlements - income tax treatment
• QB 08/04: Income Tax Act 2007: research and development credits (subpart LH) - tax avoidance (section BG1)
• Kiwisaver - creditable membership
• QB 08/03: Application for a private ruling or product ruling on an issue dealt with in a mutual agreement made under a Double Tax Agreement - Tax Administration Act 1994, sections 91E(4)(D)(ii) and 91F(4)(D)
• QB 08/02: Commissioner's power to issue a replacement ruling that operates retrospectively
• QB 08/01: Tax Administration Act 1994 - Section 91E(4)(f) and self-assessment
• QB 07/05 - Ability to rule where the Commissioner is auditing or investigating - whether the Commissioner has a discretion to rule or is prohibited
• QB 07/02 - Whether The Minor Beneficiary Rule Exemption In Section HH 3B Applies On A $1,000 "Per Beneficiary" Or On A $1,000 "Per Beneficiary Per Trust" Basis.
• Tax treatment of wooden scaffolding planks
• Exemption from gift duty for dispositions of property made by or under an order of the Court: section 75(A) Estate and Gift Duties Act 1968
• Private and product binding rulings - to whom do they apply?
• Bankrupt's ability to carry forward accumulated losses
• Records for controlled foreign companies or foreign investment funds to be available in English
• Website expenditure - deductibility
• Qualifying foreign private annuity exemption from the Foreign Investment Fund regime
• Tourism service providers' payments made to tour guides or drivers - the income tax liability of those parties and the tour operator employing the guide or driver
• Managing communications associated with a dispute referred to the Adjudication Unit
• When does derivation occur in relation to land sales with a deferred settlement, by business taxpayers who provide vendor finance?
• Section 108 Tax Administration Act 1994 (TAA) - commencement of four year statutory period (November 2002)

Date published: 10 Mar 2010

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