- Recent CA ANZ advocacy activities
- Recent CA ANZ submissions
- Upcoming activities
Recent CA ANZ Advocacy activities
NZ Tax Leader John Cuthbertson and Chair of our Tax Advisory Group Greg Haddon presented our submission to the Parliamentary Select Committee on the Feasibility Expenditure Tax Bill shortly before Christmas.
This Bill contains several key changes. CA ANZ have voiced our opposition to the proposed legislative approach to purchase price allocation rules. These do not align with commercial practices and will impact virtually all business sales – carrying an undue compliance burden and skewing the power balance between vendor and purchaser.
We also outlined our belief the proposed feasibility expenditure changes are insufficient to ensure tax is not a barrier for businesses looking invest in new projects or assets. In our view the proposed rule should allow deductibility of feasibility expenditure incurred by an existing business to investigate new business processes and income earning activities.
Submission on Taxation (Annual Rates for 2020-21, Feasibility Expenditure, and Remedial Matters) Bill
While this Bill covers a wide range of issues, our principle comments relate to purchase price allocation, feasibility expenditure, habitual buying and selling of land and GST on outbound mobile roaming services.Read more
Recent CA ANZ Submissions
The NZ Tax Team has many simultaneous consultation projects in the first quarter, including a large-scale review of New Zealand’s tax avoidance provision. It’s been a busy start to the year with several submissions already filed including:
- Income Tax – tax treatment of cryptoassets received from blockchain forks and airdrops
- Retention of business records in electronic formats, application to store records offshore and keeping records in languages other than English or te reo Māori.
- Administration of the imported mismatch rule section FH 11
- Deduction Notices
- Income tax treatment of accommodation provided to employees
- Whether “negative interest” payments are subject to withholding taxes
- Charities business exemption - when it must be used, and, Charities business exemption -business carried on in partnership.
In February we have organised the Deputy Chair of our Tax Advisory Group and Inland Revenue Officials to present a webinar to members on the implications of the new 39% top personal tax rate. This is to ensure members are aware of the increased scrutiny that tax structuring will be subject to, now that a significant gap exists between the top personal and corporate tax rates. The recording of this session will be available on our website after February 19.
Our first Tax Advisory Group Meeting of 2021 is being held before the International Fiscal Association conference later this month.
Connect with the NZ Tax team
Members are encouraged to stay engaged in the consultation process and share suggestions and feedbackSend Your Comments
Discuss current or upcoming advocacy work
If you’d like to discuss current or upcoming advocacy work get in touch with our Member Knowledge Specialist.Email Now