Date posted: 9/07/2019 8 min read

Have your say: open New Zealand consultation items

Help shape NZ tax policy and guidance. Inland Revenue have released many items for public consultation

In brief

  • Options for taxing the digital economy: A Government discussion document
  • KiwiSaver tax bill introduced
  • Supplementary Order Paper: providing IRD numbers for all property transfers
  • Application of the employee share scheme rules to employer issued crypto-assets provided to an employee
  • Application of discretion in s18D(2) of the Tax Administration Act 1994 - an exception to confidentiality

Items open for consultation:

Issues papers and discussion documents

Options for taxing the digital economy: A Government discussion document

The Government is seeking public feedback on proposals to more effectively tax the digital economy in New Zealand. These are:

  • Changing the current international income tax rules, to allow more taxation in market countries. This option is currently being discussed by the OECD and the G20 group of large economies.
  • Applying a separate digital services tax to certain revenues earned by highly digitalised multinationals operating in New Zealand. The discussion document seeks feedback on how a DST might work in practise.

Members can provide feedback directly to the NZ Tax Team prior to 1 July 2019 or submissions can be sent to Inland Revenue by 18 July 2019.

Have your say on how to tax the digital economy

CA ANZ welcomes member feedback on the Government's ‘Options for taxing the digital economy’ discussion document.

Read more

Bills and Legislation

KiwiSaver tax bill introduced

The Minister of Revenue has announced the Taxation (KiwiSaver, Student Loans and Remedial Matters) Bill which was introduced into Parliament on 27 June.

The Bill includes a number of proposals, covering KiwiSaver, Student Loans, Research and Development Tax Credits, and remedial items. As part of the Research and Development section of the Bill, there are proposals to broaden the definition of internal software development subject to the $25million cap, so that it includes all software development expenditure that isn't external software development or software development undertaken for the purpose of internal administration.

While the closing date for submissions on this bill is yet to be announced, CA ANZ will be making a submission on this item and welcomes submissions from Members.

Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill

Read the commentary here.

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Supplementary Order Paper: providing IRD numbers for all property transfers

While the public is not able to consult on this item please be aware that supplementary order paper (SOP) No. 248 to the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Bill was released on 18 June 2019. It includes a proposal that would require all buyers and sellers of property to provide their IRD number as part of the transaction process. Previously, those buying or selling a main home did not have to provide an IRD number. This proposal was 'recommendation 99' of the Tax Working Group report, in the Minister of Revenue's media statement it is noted that this change will apply from 1 January 2019.

Read more about the requirement to provide IRD numbers for all property transfers

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Draft Rulings and Guidance

PUB00344: Income tax – application of the employee share scheme rules to employer issued crypto-assets provided to an employee

Inland Revenue has recently undertaken a lot of work on cryptocurrencies. This draft ruling follows three other recent consultations on crypto-assets and considers whether the employee share scheme rules could apply to some types of employer-issued crypto-assets provided to employees.

CA ANZ will be making a submission to Inland Revenue on this item and welcome comments from Members.

Deadline for comment 6 August 2019.

Whether employee share scheme rules can apply to employer issued crypto-assets

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Standard practice and operational statements

ED0210: Application of discretion in s18D(2) of the Tax Administration Act 1994 - an exception to confidentiality

Inland Revenue have released a draft standard practice statement "ED0210: Application of discretion in s18D(2) of the Tax Administration Act 1994 - an exception to confidentiality" for public consultation. Following the amendments to the secrecy provisions of the Tax Administration Act 1994 as part of the Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Act 2019, this item sets out the Commissioner's practice regarding the new confidentiality rule. It also provides guidance and outlines the steps needed before making a permitted disclosure to ensure consistency and to also ensure any disclosure is in line with the Commissioner's authority to make a permitted disclosure.

CA ANZ will be making a submission to Inland Revenue on this item and welcome comments from Members.

Deadline for comment 16 August 2019.

Application of discretion in s18D(2) of the Tax Administration Act 1994 - an exception to confidentiality

Have your say

Recently closed items:

Inland Revenue have recently finished consultation on the following items:

  • Public Rulings work programme for 2019 – 2020 year
  • GST on telecommunication services: An officials' issues paper
  • Commissioner's statement on using a kilometre rate for business running of a motor vehicle – deductions and, Commissioner's statement on using a kilometre rate for employee reimbursement of a motor vehicle

Tax Policy consultation

Read the full consultation documents here

Click here

Public Consultation

Inland Revenue's draft consultation items

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Contact the CA ANZ Tax Team NZ

Throughout the year we ask for member’s thoughts and feedback on submissions and consultation items. If an item is of interest to you or your clients let us know your thoughts.

we’d love to hear from you.