QB 24/02 Income tax – bright-line test – main home exclusion – renting to flatmates
This QWBA clarifies the Commissioner’s view on how the main home exclusion to the bright-line test applies where a person rents out a room in their home to a flatmate. Generally, the fact a person rents out a room in their home to a flatmate does not preclude the main home exclusion applying and the person will not be taxed under the bright-line test.
This QWBA explains how to determine a person’s main home for the purpose of the main home exclusion to the bright-line test where the person uses two or more homes as a residence.
On 12 July 2022, Judge S B Edwards struck out Jeremy McGuire’s (Mr McGuire’s) defence to the Commissioner of Inland Revenue’s claim for $39,763.48 in unpaid tax, entered judgment in that amount and awarded costs.
The Taxation Review Authority (TRA) has no jurisdiction to hear a Challenge Proceeding regarding the imposition of use of money interest.
The Disputants failed to file a valid Notice of Claim concerning a second issue which had the potential to be within the TRA’s jurisdiction. Accordingly, the Challenge Proceedings were defective (a nullity) with no evident path to rectification.
The Disputants failed to attend a mandatory directions hearing. There was no good reason for this and there were no exceptional circumstances. The result being the proceedings are at an end.
Vol 36 No 5 TIB - June 2024
Case summaries
- CSUM 24/03: Taxation Review Authority (TRA) 007/22 [2024] NZTRA 003
- CSUM 24/04: Commissioner of Inland Revenue v McGuire [2024] NZHC 883
Technical decision summaries
- TDS 24/06: Sale of property and the bright-line test
- TDS 24/07: Suppressed cash sales, GST and evasion shortfall penalties
- TDS 24/08: Employee Share Scheme – right to receive shares
OS 19 04 (KM 2024) Kilometre rates for the business use of vehicles for the 2024 income year
DET 19/01 (CPI 2024) 2024 CPI adjustment to DET 19/01: Household boarding service providers
This update to DET 19/01 shows the annual adjustment to the standard-cost household service for boarding service providers.
DET 09/02 (CPI 2024) 2024 CPI Adjustment for Determination DET 09/02: Standard-cost household service for childcare providers
This update to determination DET 09/02 shows the annual adjustment to the standard-cost household service for childcare providers.
DET 19/02 (CPI 2024) 2024 CPI adjustment to DET 19/02: Short-stay accommodation
This update to DET 19/02 shows the annual adjustment to the standard-cost household service for short-stay accommodation.
OS 19 03 (CPI 2024) 2024 CPI adjustment to Operational Statement OS 19/03: Square metre rate for the dual use of premises
This update to OS 19/03 shows the annual adjustment to the square metre rate for the dual use of premises.
| Reference | Title | Closes |
|---|---|---|
| 2024 25 work programme | Public advice and guidance work programme 2024-25 | 07 June 2024 |
| ED0257 | Authority to Act for Tax Agents and other Intermediaries and Nominated Persons | 28 June 2024 |
Public advice and guidance work programme 2024-25
Each year the Tax Counsel Office prepares a programme of public guidance work for the following year.
If you are aware of any tax technical or interpretative issues you think we should publish guidance on, please let us know by 7 June 2024.
Before adding a suggestion to the work programme, we consider the importance of the issues involved, the level of uncertainty/ambiguity, the number of customers potentially affected, and the potential revenue implications. Any relevant information you can provide about these factors is appreciated.
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