The Week In Tax

Inland Revenue releases an issues paper on addressing the problems the foreign investment fund regime presents for migrants and US citizens and we look back at the year in tax

This week the Minister of Finance reveals that changes to the tax treatment of charities will be announced in next year’s Budget, more feedback on Inland Revenue’s proposed long-term insights briefing and are cryptoassets held in offshore exchanges covered by the transitional resident’s exemption?

2024 peer review update from the OECD on the Automatic Exchange of Financial Account Information and how Inland Revenue is using that data Inland Revenue releases feedback on the scope of its next long-term insights briefing together with a summary of the submissions we received. What has Roger Douglas got to say? More on last week's podcast with guest Andrew Paynter

My guest this week is Andrew Paynter, a policy advisor at Inland Revenue and co-winner with Matthew Seddon of this year's Tax Policy Charitable Trust Scholarship. The Tax Policy Charitable Trust was established by Tax Management New Zealand and its founder Ian Kuperus to encourage future tax policy leaders and support leading tax policy thinking in Aotearoa. Andrew’s proposal is to increase the rate of GST to 17.5% and introduce a GST refund tax credit for low- and middle-income individuals.

This week, the Government’s tax and social policy work programme is announced, more on Inland Revenue’s crackdown on Student Loan debt, and why we might need to pay more tax

An in-depth look at Inland Revenue's latest report - a good year overall but rising tax and student loan debt remains an issue.

Rachel Reeves, the first ever female Chancellor of the Exchequer delivers a UK Autumn Budget with potentially significant implications for many Kiwis and Britons who have migrated to New Zealand. Meanwhile Inland Revenue's crackdown on tax evasion continues.

This week, surprising stats around the number of taxpayers reporting foreign investment fund income, the winners of this year's Tax Policy Charitable Trust Scholarship are announced and a preview of next week’s United Kingdom Budget

This week notes from a joint podcast with www.interest.co.nz with Dr Andrew Coleman on his proposal for funding the rising cost of New Zealand Superannuation. Time for a KiwiSaver 2.1? Inland Revenue is consulting on deduction notices - time to rethink their use How many anonymous tip-offs each year does Inland Revenue receive and how many businesses is it auditing?

This week my guest is Matthew Handford, a solicitor in the Mayne Wetherell tax team and another of the four finalists for this year's Tax Policy Charitable Trust Scholarship competition. The Tax Policy Charitable Trust was established by Tax Management New Zealand and its founder Ian Kuperus to encourage future tax policy leaders and support leading tax policy thinking in Aotearoa. Matthew is proposing a Tax Law Commission, independent of Inland Revenue, to restore the Generic Tax Policy Process. Under Matthew’s proposal, a TLC would have a standing mandate to systematically review the operation of New Zealand’s tax laws and make recommendations for their improvement.

This week, we look at the OECD’s 2024 edition of Tax Policy Reforms, the ACC crack down on overseas earners, Inland Revenue responds to criticism of its use of social media and not only will you earn more in Australia, apparently the tax refunds are bigger, or are they?

This week Inland Revenue releases draft guidance on FBT and motor vehicle travel between home and work, the Two-Pillar solution for international tax inches forward, and the capital gains tax debate gets spicier.

In te Wiki o te Reo Māori, Māori Language Week, we look at Māori taxation and business. Is the current GST threshold holding back small businesses? More evidence of Inland Revenue’s crackdown on non-compliance and new research fuels the debate about taxing capital.

The taxation of capital is back in the news. Should the New Zealand Superannuation Fund become tax exempt? Inland Revenue is under scrutiny for its use of social media. A bad week for Apple and Google in the European courts Inland Revenue releases an intriguing consultation on GST and management services supplied to managed funds

My guest this week is Claudia Siriwardena one of the four finalists for this year's Tax Policy Charitable Trusts Scholarship. We discuss her proposal for a simplified fringe benefit tax regime for small businesses

The Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Measures) Bill is released Insights from 10 years of Inland Revenue's transfer pricing questionnaires Inland Revenue starts knocking on doors about overdue tax debt

This week, Inland Revenue consults on the scope of its next long-term insights briefing. How to deal with recipients of paid parental leave with tax underpayments A bizarre tax avoidance case from the UK involving snails

This week Inland Revenue cranks up the pressure on liquor outlets, issues draft guidance on the taxation of share investments and tax and the Olympics, a cautionary tale involving Snoop Dogg

This week, an inland revenue ruling highlights the care needed when using look-through companies, I answer a reader’s question and I celebrate 20 years in business with a look back at the last 20 years in New Zealand tax.

Matthew Seddon, one of this year's finalists in the Tax Policy Charitable Trust prize competition, discusses his suggestion to expand the withholding tax regime to contractors. This is one way of addressing the tax gap identified by the last Tax Working Group in 2018.

This week Inland Revenue’s updated property tax decision tool and the potential implications for shared housing Increasing doubts about the international tax deal, is it time to revisit first principles? Is our international tax regime turning migrants away?

Latest OECD Corporate Tax Statistics report has a wealth of data including signs that corporate tax rates have stabilised after a long period of decline Inland Revenue releases draft guidance for consultation on identifying relevant item of property for depreciation purposes Further evidence of Inland Revenue's increased enforcement activities

This week a deep dive into the Public Service Commission's recently released Performance Improvement Review of Inland Revenue. What makes it a "high-performing" organisation, what can it do better and what risk is it perhaps under-estimating?

Inland Revenue announces a crackdown on crypto-asset investors and traders, The 2023-24 kilometre rates for business vehicle use are released The Tax Policy Charitable Trust announces the four finalists in this year's scholarship competition

This week, Inland Revenue releases guidance on when a subdivision represents a taxable activity for GST purposes and the tax treatment of loans to shareholders and employees. The G20 puts forward a blueprint for taxing billionaires.

This week, the Ministers of Finance and Revenue get scrutinised by the Finance and Expenditure Committee. Charities use of the tax exemption to come under review. Insights from an Inland Revenue hidden economy campaign targeting smaller liquor outlets and more on effective marginal tax rates.

This week we reviewthe Regulatory Impact Statements released alongside the Budget tax measures and ask is it time to regularly index income tax thresholds? Inland Revenue releases it operational position on the GST treatment of landlords supplying properties for use as transitional housing

This week a preview of what tax measures might be in Thursday's Budget. What could Finance Minister Nicola Willis do to cover the cost of the tax threshold adjustments and where might Inland Revenue get additional funding for investigations and enforcement? Also the UK election and the latest fallout from the ATO's raid on Exclusive Brethren related businesses.

The Australian Budget is released - what clues for the coming New Zealand Budget Facebook New Zealand's 2023 results show the scale of the advertising revenue going offshore Treasury's blunt warning ahead of the Coalition Government's December Mini-Budget

In her first pre-Budget speech the Finance Minister Nicola Willis confirms tax threshold adjustments will be part of this year's Budget. Meantime the OECD calls for a capital gains tax and I reflect on 40 years in tax - what's changed or not changed..

A quiet week in the tax world - but is this the calm before the storm of this year's Budget? The latest OECD report on taxing wages shows the tax wedge rising in most countries including New Zealand.

This week a special episode with guests Rob McLeod, Robin Oliver & Geof Nightingale in which we discussed the following: What does make a good tax system and where does New Zealand presently sit? The current broad-base, low rate approach is under strain. How do we address that? What can we do to keep/ preserve that as far as possible? Rob McLeod about the risk-free rate of return method as an alternative to a capital gains tax How effective is current oversight of Inland Revenue - 30 years on from the Richardson review is it time for another look? What surprises them in the tax world right now? What one proposal from your respective tax working groups would you like to see implemented?

The Government is considering a review of the charitable exemption for religious organizations this term Canada loses patience and imposes a Digital Services Tax effective 1 January 2024 Inland Revenue appears to be gearing up for a fringe benefit tax initiative.

This week Inland Revenue gets tough with the construction industry over outstanding debt and tax evasion Inland Revenue releases three special reports regarding the changes to the platform economy rules, the 39% trustee tax rate and the new 12% Offshore gambling duty

The new Apps Tax causes confusion for some non-GST registered operators Treasury Analytical Note examines the effects of taxes and benefits for the 2018-19 tax year The Australian Tax Office gets heavy with the Exclusive Brethren – will Inland Revenue follow suit?

The IMF suggests a CGT & gets rebuffed Bright-line test red flags How to tax wealth IMF and Climate Change Commission suggest changes to the Emissions Trading Scheme are needed

This week, clarity about the application of the 39% trustee rate and the timeline restoring interest deductibility for residential investment. Inland Revenue does not consider removal of commercial buildings depreciation "to be a fair and efficient way of raising revenue". New 12% online Gaming Duty still leaves $500 million gap in the Government’s tax package.

The UK's Spring Budget drops a big change which will affect tens of thousands of Kiwis and British expats with the end of the remittance based taxation regime More on UK trust filings and why are there so many trusts in New Zealand Financing local government, time for change?

Hints that the new 39% trustee tax rate might not apply to all trusts and tax stats indicate New Zealand may have more trusts than the UK despite having only a 13th of the population What connects Pillar One & Pillar Two with the collapse of Newshub New draft Inland Revenue guidance on employee share schemes

Highlights of this year’s International Fiscal Association conference; A suggestion for the new Minister of Revenue about tax simplification; and What tax tattoo would you have?

This week our guest is Tracey Lloyd, Service Leader Compliance Strategy Innovation at Inland Revenue, and we discuss how Inland Revenue's new START system enables it to detect fraud.

This week Treasury talks about the elephant in the room, capital gains tax, in its briefing for the new Finance Minister; Inland Revenue releases consultation on the extent to which business income a charitable entity derives is exempt from tax; and A Waikato sharemilker who used COVID support money on online gambling gets found out by CSI Inland Revenue.

A busy start to the tax year with the release of the first (and only) draft report under the now repealed Tax Principles Act and the Briefing to the Incoming Minister of Revenue; Inland Revenue give some initial guidance about the implications of the likely 39% trustee; and tax rate threshold adjustments or tax credits - we discuss ACT's tax proposals.

The Climate Commission & COP28, A useful suggestion from the UK on taxing EVs An interesting case on staff retention payments Another tax case shows how not to use ChatGPT in a tax case What’s the character of the year?

Inland Revenue launches a campaign targeting potential tax avoidance by higher rate taxpayers What deductions can you claim when you rent a room in your home to a flatmate Inland Revenue approves a product ruling enabling employees to provide e-bikes & e-scooters free of FBT An interesting Official Information Act release on interest deductions.

This week, more on the Coalition Government’s tax policies and the accelerated restoration of interest deductibility, To raise revenue, why not tax marijuana? Several Inland Revenue Technical Decision Summaries illustrate the perils of omitting income

The Coalition Government reveals its tax policies and there’s a surprising new Revenue Minister, Two recent Inland Revenue reports may be of interest to the new Government Happy 20th Birthday to the New Zealand Super Fund

This week, is Inland Revenue gearing up for a review of GST registrations where there are consistent refunds Updated guidance on when a subdivision project a “taxable activity” for GST purposes Good news for those who may have been non-compliant in relation to reporting Foreign investment fund income

How did Inland Revenue fare during the year? What challenges lie ahead for it and the incoming minister of revenue, whoever that might be?

This week is a new multilateral convention a step forward towards an agreement on international tax or are we just spinning wheels? An interesting Inland Revenue technical decision summary on the foreign investment fund regime How practical is a financial transactions tax? What now after the election?