Date posted: 5/02/2020 8 min read

Have your say: open New Zealand consultation items

Help shape NZ tax policy and guidance. This month Inland Revenue have called for feedback on purchase price allocation, Charities and Donee organisations, and on proposed changes to the Unclaimed Money Act.

In brief

  • Purchase price allocation
  • ED0207a: Charities
  • ED0207b: Donee organisations
  • Consultation on proposed changes to unclaimed money

Items open for consultation:

Purchase price allocation

Most sales of a business are mixed supplies, meaning they involve a mixture of revenue account property (for example, trading stock), depreciable property (for example, plant or machinery) and capital account property (for example, goodwill). Another common example of a mixed supply is a sale of commercial property, which involves depreciable fit-out as well as non-depreciable land and buildings.

This issues paper discusses policy proposals to address income tax problems relating to mixed supplies where:

  • two or more types of property are supplied in a single transaction; and
  • the tax treatment of those types of property is not the same, for one or both of the parties.

Comment deadline: 14 February 2020

ED0207a: Charities

This operational statement sets out how Inland Revenue and Charities Services (formerly the Charities Commission) will monitor and advise charitable entities of the requirements for income tax exemption and donee status. Its purpose is to assist organisations in the charities and not-for-profit sectors to understand their tax obligations and the tax exemptions available to them. The statement also addresses other relevant tax matters such as record-keeping and the implications of being de-registered from the Charities Register. The new Operational Statement will be issued in 2 parts – Part 1 will discuss Charites and Part 2 Donee organisations. When signed, they will replace OS 06/02 Interaction of tax and charities rules, covering tax exemption and donee status, issued in December 2006.

Comment deadline: 14 February 2020.

ED0207b: Donee organisations 

This operational statement sets out how Inland Revenue and Charities Services (formerly the Charities Commission) will monitor and advise charitable entities of the requirements for income tax exemption and donee status. Its purpose is to assist organisations in the charities and not-for-profit sectors to understand their tax obligations and the tax exemptions available to them. The statement also addresses other relevant tax matters such as record-keeping and the implications of being de-registered from the Charities Register. The new Operational Statement will be issued in 2 parts – Part 1 will discuss Charites and Part 2 Donee organisations. When signed, they will replace OS 06/02 Interaction of tax and charities rules, covering tax exemption and donee status, issued in December 2006.

Comment deadline: 14 February 2020.

Consultation on proposed changes to unclaimed money

Feedback is sought on proposals to more efficiently administer unclaimed money – proposals that would make it easier for people to claim money and reduce costs for unclaimed money holders.Proposed changes include removing the need to maintain physical registers, reducing the period of time before money is deemed unclaimed and improving Inland Revenue’s ability to match unclaimed money with people.

Submissions on this item close on 28 February and members are welcome to provide feedback to the NZ Tax Team or directly to Inland Revenue via email

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.