Date posted: 11/12/2018 3 min read

NZ Tax Update December 2018

Recent developments in New Zealand tax.

In Brief

  • Taxation of Digital Economy
  • Items open for consultation
  • Recent Submissions

Taxation of the Digital Economy

New Zealand Tax and Financial Services Leader, John Cuthbertson has recently returned from the bi-annual Global Accounting Alliance Tax Directors Meeting in which the taxation of the digital economy was a key topic. Reflecting on the meeting John said "It was heartening to note that a number of EU member countries also share our concerns regarding the potential retaliatory impacts that may result for relatively little fiscal gain if countries unilaterally try to 'go it alone' with such a tax. New Zealand is a significantly commodity exporter and once the principles of a digital services tax are established it would not take much for these to be extended to capture, and subject to tax, our key commodity exports in the countries in which those commodities are consumed. This approach also risks double taxation as a foreign tax credit would not be available."

CA ANZ expressed our concerns as to how the "international tax pie" is divided as part of our submission to the Tax Working Group's interim report earlier this year (p. 15-16).

A copy of our submission to the TWG can be found here.

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Items open for Consultation

Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Bill

Following the Minister's announcement at our Tax Conference in October, the Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Bill was introduced to parliament earlier this month. The Bill proposes changes which will see overseas suppliers of low value goods (less than $1000) to NZ consumers required to collect and return GST. Submissions can be made to parliament before 28 February 2019, or  if you would like to provide feedback to CA ANZ on this item please contact the Tax Team. A copy of our submission will be available on our website following our oral submission before Parliament.

Other measures in the Bill also include proposals on ring-fencing of losses on residential rental properties. The proposed rules in the Bill are intended to ensure that investors will no longer be able to deduct expenditure relating to their loss-making residential investment properties from their other income (for example, salary or wages, or business income), to reduce their tax liability.

A copy of the Bill, commentary and regulatory impact statements can be found here.

Read here

Recent Submissions

Taxation (Research and Development Tax Credits) Bill

CA ANZ recently submitted on the Taxation (Research and Developments Tax Credits) Bill. A copy of our submission will be available following our appearance before the Finance and Expenditure Committee in the New Year.

PUB00311: What are the requirements for claiming tax deduction for payments to family members for services?

Inland Revenue recently consulted on their draft QWBA asking 'What are the requirements for claiming tax deduction for payments to family members for services?'

A copy of CA ANZ’s submission is available on our website

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Inland Revenue Christmas Closures

Inland Revenue will be closed over the Christmas period, the closure dates are as follows:       

  • Front of House counters and 0800 phone lines will close 2pm Monday 24 December 2018 and reopen 8am Thursday 3rd January 2019
  • Efile: unavailable from midday Monday 24 December 2018, available Thursday 3 January 2019.
  • IRfile and MyIR: Unavailable 25 December 2018, available again 27 December 2018.

Please keep these dates in mind for the New Year.

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