Changes are afoot to the rules imposing non-resident withholding tax (NRWT) on related party debt.
Is Capitalising debt tax avoidance?
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.
Tax Trap on Share Acquisitions
Acquirers of shares need to take note of an important 2014 tax law change. The change is in the area of loss offsets between group companies.
Impact of Remission income on Loss Offsets
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?
Minimising Tax Penalties (Voluntary Disclosure)
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.
Land Tax - Rezoning
What are the tax implications here? There are three specific land taxing provisions that may apply. GST considerations are also relevant.
Don't we already tax capital Gains?
If you ask that question of a property developer they will say yes. Gains from development of land are invariably taxed, unless held for investment purposes only.
Structuring Choices (Alesco)
The Court of Appeal has emphatically confirmed a tax avoidance finding against Alesco. The decision demands a major rethink on what structuring choices taxpayers may take.
Tax Avoidance v Tax Evasion
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.
Lease Inducements
This is a big change in our tax law that will affect a good number of businesses.
The Sovereign Assurance Case
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.
Conclusions from Penny & Hooper
The key point to take away from the recent Penny & Hooper decision is not to push the boundary when restructuring.
Land Zero Rating
By now you will probably be familiar with the new rules that apply to the transfser of land for GST purposes. These rules, which came into effect on 1 April 2011 zero rate most transfers of land that are made from one registered person to another. These rules are referred to as the compulsory zero rating (CZR) rules.
Capital Gains Tax
Labour has announced its intention, if elected, to introduce a capital gains tax in New Zealand at 15%, with a carve out for your principal home. Many people have asked me what this would mean.