Date posted: 9/09/2019 8 min read

Have your say: open New Zealand consultation items

Help shape NZ tax policy and guidance. Inland Revenue have released a number of items for public consultation. As well as consulting on the current Taxation Bill, these items include requests to amend assessments and distributions for foreign trusts.

In brief

  • Inland Revenue have called for feedback on employee use of telecommunications tools and usage plans in their employment, and
  • a set of GST items which consider the GST treatment of supplies made to overseas hunters

Items open for consultation:

Standard practice and operational statements

GST – Supplies by NZ hunting outfitters and taxidermists to overseas hunters

An item which may be of particular interest to our regional members, Inland Revenue have issued a draft interpretation statement considering the GST treatment of supplies made by New Zealand hunting guides or outfitters, and taxidermists to overseas hunters. The interpretation statement, when finalised, will replace three earlier public statements. The interpretation statement is also accompanied by three fact sheets. 

Different GST treatments apply to the supply of souvenir animal parts or animal souvenirs, depending on the circumstances and contractual arrangements between the parties.  The Interpretation Statement sets out six scenarios involving supplies of souvenir animal parts or animal souvenirs for export:

  • Scenario 1 – No supply of exported wild souvenir animal parts by outfitter
  • Scenario 2 – Standard-rated supply of souvenir animal parts by outfitter
  • Scenario 3 – Zero-rated supply of animal souvenir by outfitter using an independent taxidermist
  • Scenario 4 – Zero-rated supply of animal souvenir by outfitter using an in-house taxidermist
  • Scenario 5 – Zero-rated supply of souvenir animal parts by outfitter and zero-rated supply of taxidermy services by taxidermist, and
  • Scenario 6 – Zero-rated supply of animal souvenir by taxidermist.

Deadline for comment 9 October 2019.

GST Supplies by NZ hunting outfitters and taxidermists to overseas hunters

Please quote reference: PUB00307.

Read the exposure draft

Determinations

ED0219: Employee use of telecommunications tools and usage plans in their employment

Inland Revenue are seeking feedback on draft determination ED0219: Employee use of telecommunications tools and usage plans in their employment which provides employers with the option of applying certain percentages to make an allocation between business use and private use for usage plans related to telecommunications tools.

The determination applies to the arrangements described below and in circumstances where employees use their own telecommunications tools in their employment and also use the tools for private use. It may also apply where the employer provides payments in relation to usage plans only.

Class A arrangements covers situations where:

  • an employer enters into an arrangement with the employee whereby the employee will provide their own telecommunications tools and usage plan, or the arrangement involves the employee using their own usage plan, and
  • the employee incurs the cost of the telecommunications tools and the usage plan or the cost of the usage plan alone and there is reimbursement, or
  • in the case of reimbursement, an estimated amount or allowance represents a reasonable estimate of the likely expenditure to be incurred by the employee and
  • the telecommunications tools and usage plan are principally used by the employee in their employment, and the employee also uses the tools and usage plan or usage plan alone for private use, and
  • there may be an amount relating to depreciation loss.

Class B arrangements covers situations where:

  • an employer enters into an arrangement with the employee whereby the employee will provide their own telecommunications tools and usage plan, or the arrangement involves the employee using their own usage plan, and
  • the employee incurs the cost of the telecommunications tools and the usage plan or the cost of the usage plan alone and there is reimbursement, or
  • in the case of reimbursement, an estimated amount or allowance represents a reasonable estimate of the likely expenditure to be incurred by the employee, and
  • the employee is required to use telecommunications tools and usage plan in their employment based on a business reason and also uses the tools for private use and
  • there may be an amount relating to depreciation loss.

The De Minimis Class arrangement covers situations where:

  • an employer enters into an arrangement with the employee whereby the employee will provide their own telecommunications tools and usage plan, or the arrangement involves the employee using their own usage plan, and
  • the employee incurs the cost of the telecommunications tools and the usage plan or the cost of the usage plan alone and there is reimbursement, or
  • in the case of reimbursement, an estimated amount or allowance represents a reasonable estimate of the likely expenditure to be incurred by the employee, and
  • the employee is required to use telecommunications tools and a usage plan in their employment based on a business reason and also uses the tools and usage plan for private use, and
  • there is a payment of no more than $5 per week per employee, amounting to no more than $265 per year, as a reimbursement or an allowance in relation to the use of telecommunications tools and a usage plan or the cost of the usage plan alone.

Deadline for consultation 20 September 2019.

Exposure Draft 0219

Employee use of telecommunications tools and usage plans in their employment.

Read the draft determination

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

Read more

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.