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Interpretation guidelines and interpretation statements: 2011
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 2011 alphabetically by title.
IG11/01 - Income tax; goods and services tax - determining employment status for tax purposes (employee or independent contractor)
This interpretation guideline sets out Inland Revenue's position on how taxpayers are to determine their employment status for tax purposes. It analyses the terms "employee" in the Income Tax Act 2007 and "contract of service" in the Goods and Services Tax Act 1985, and discusses the common law tests the courts apply to determine whether a person is engaged under a contract of service (employee) or a contract for services (independent contractor).
IS11/01 - Income tax - depreciation: meaning of "obsolescence" in the definition of "estimated useful life"
This interpretation statement sets out the Commissioner's view on the meaning of the term "obsolescence" in the definition of "estimated useful life" in the depreciation provisions of the Income Tax Act 2007. Section EE 63 provides that certain factors must be taken into account when determining the estimated useful life of an item. One of these factors is "obsolescence". The Commissioner considers that, in the context of s EE 63, obsolescence means that causes external to that item, and outside the control of the taxpayer, will result in that item being no longer useful in deriving assessable income before the end of its physical life.