GST, PAYE, whether accommodation provided to an employee

Given the significant value of many land transactions, it is particularly important for buyers and sellers to understand if transactions are subject to goods and services tax (GST). 

The provision of services by a New Zealand company to an overseas company. Whether the overseas company had a permanent establishment in New Zealand.

This interpretation statement considers common tax issues associated with overdrawn shareholder loan accounts held in New Zealand resident close companies. A fact sheet has also been included.

This fact sheet accompanies IS 24/09: Income tax – Overdrawn shareholder loan account balances, which considers common tax implications arising from overdrawn shareholder loan accounts.

New legislation

• SL 2024/172 Tax Administration (Direct Credit of FamilyBoost Tax Credit) Order 2024

Interpretation statement

• IS 24/08: Charities – Business income exemption

Technical decision summary

• TDS 24/18: Restructuring a group of companies

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Residency; income tax deductions; GST input tax deductions; shortfall penalties

The establishment of a limited partnership to hold the shares in a holding company. The long-form amalgamation of the holding company and one of its subsidiaries under Part 13 of the Companies Act 1993, with the subsidiary remaining as the amalgamated company. The distribution by the holding company of cash and shares in subsidiary companies on amalgamation as consideration for the cancellation of its shares.

Tax Information Bulletin - Vol 36 No 10, November 2024

New legislation

• LI 2024/189 Tax Administration (GST Adjustment Rules) Modification Order 2024

Rulings

• BR Prd 24/02 and BR Prd 24/03: WorkRide Limited

Interpretation statement

• IS 24/07: Deductions for parties to employee share schemes

Commissioner’s statement

• CS 24/02: Withholding obligations arising in relation to transfer pricing arrangements

Question we’ve been asked

• QB 24/5: Do supplies of standing timber and other unsevered crops wholly or partly consist of land for the compulsory zero-rating rules?

Technical decision summary

• TDS 24/17: Deductibility of bonus payments

Case summary

• CSUM 24/06: High Court issues a 28-day temporary halt of Commissioner’s bankruptcy proceedings pending payment of sum