These draft items provide guidance for individuals who invest in shares, so they are aware of their tax obligations.  The draft interpretation statement covers when an investor will have a tax liability for dividends, share sales and attributing interests in foreign investment funds (FIFs).  The fact sheets provide information for investors, so they know when the FIF rules apply, or when they have a tax liability for dividends or taxable share sales. 

These items focus on investors who use online investment platforms, although the principles apply more widely (for example, investing using brokers).  The items do not apply to non-individuals, investments in managed funds, Kiwisaver or illiquid investments in closely held companies. 

CA ANZ commends the draft interpretation statement and fact sheets for their accessible language, structure, and inclusion of numerous examples, which will help the target audience better understand the issues and broaden the guidance's reach. The media statement issued by Inland Revenue upon the draft’s release for public consultation was appreciated, and CA ANZ recommends another statement be issued once the final documents are published.

Additionally, CA ANZ encourages Inland Revenue to continue educating taxpayers and the public on this issue and to consider working with online investment platforms to highlight the relevance of tax to their clients and the existence of the guidance.

CA ANZ also suggests that certain aspects of the draft be reviewed and further clarified.