The TWG appointed by the Government primarily to assess whether or not New Zealand should introduce a capital gains tax appears to be unconvinced as to its merits. This newsletter summarises key findings in the TWG's preliminary report...
The anti ‘base erosion and profit shift’ (otherwise known as BEPS) measures are soon to be implemented; officials are committed to introducing these measures into law by 1 July 2018, their target date...
The Brightline test for residential property is to be extended from 2 to 5 years from later this month. The current 2 year period was criticised from inception as potentially too short and relatively easy to work around. With the extension, the ability to work the system, by sitting out the 2 year period will have gone.
Inland Revenue has issued a recent statement to the effect that issuing shares in cancellation of debt owed to a shareholder is tax avoidance. They say it is tax avoidance because of the purpose and effect of avoiding remission income that would otherwise arise if the debt was forgiven/remitted. Inland Revenue's statement is alarming.
This article addresses a company that has a loss on account of expenditure which the company ultimately never pays. The particular context is use of the loss by way of offset against profits of a group company. What happens when the loss company is relieved of the obligation to pay the expenditure?
Taking an incorrect tax position carries the risk of penalty by what are referred to as shortfall penalties. These are assessed at a percentage of the shortfall in tax paid that has arisen as a result of the incorrect tax position.
If tax avoidance and tax evasion were really the same thing, as the Honourable Mr Shearer and the Honourable Mr Norman believe, then anyone who has done what our good doctor friends Penny & Hooper have done, had better watch out.
This case is interesting for two reasons. First it entails about 4100m of tax. Secondly, it is an example of the IRD challenging tax treatments taken by Sovereign that at least on its face appeared both appropriate and conservative.