CA ANZ recently provided feedback on draft interpretation statement PUB00310. The determination approves a range of currency conversion methods that individuals with an interest in an overseas rental property can used to convert foreign currency amounts into New Zealand dollars.
Overall CA ANZ supports the publication of this determination. It will provide clear guidance for taxpayers and tax agents on what methods are available for converting foreign income, expenses and foreign tax. However we are concerned the draft determination does not correctly represent the law in relation to the hierarchy of exchange rates to be used.