Inland Revenue - Tax policy Tax Policy

News and information about the Government's tax policy work programme, including:
- proposed changes to the laws that Inland Revenue is responsible for
- updates on the progress of bills through Parliament
- policy announcements

Tax policy news

5 September 2018

Documents prepared as part of the advice provided to Ministers on the introduction of a research and development tax credit are now available. Other related documents are also available on the Ministry of Business, Innovation & Employment and Treasury websites.

27 August 2018

Following the enactment of the Taxation (Neutralising Base Erosion and Profit Shifting) Act earlier this year, Inland Revenue is now issuing draft guidance material to help taxpayers comply with the new legislation. Our intention is that the information that we provide is useful and (given the technical nature of the material) as clear and understandable as possible. This document covers the new rules aimed at:

- Interest limitation

- Hybrid mismatch arrangements

- Transfer pricing

- Permanent establishment avoidance, and

- Administrative measures

To help ensure that the coverage of these topics is useful to the public, we are providing this in draft format for public feedback. This will allow readers to see the form of the guidance, the direction it takes and the level of detail. Readers will be able to gauge for themselves what areas more explanation is required.

We will use feedback on this draft material to improve the content and presentation of the material. The finalised guidance will be published early in the new year.

Send your comments or questions to policy.webmaster@ird.govt.nz with “BEPS draft guidance” in the subject line.

Alternatively, send your comments to:

BEPS draft guidance
C/- Deputy Commissioner Policy and Strategy
Inland Revenue Department
P O Box 2198
Wellington 6140

The closing date for comments is 28 September 2018.

14 August 2018

Today Minister Nash announced that as part of a Supplementary Order Paper (SOP) to the tax bill currently before parliament, the Government will look to close a GST loophole where not-for-profits arguably don’t have to pay GST on sales of assets.

The Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill was introduced on 28 June 2018 and is at the Select Committee stage.

As well as this measure, the SOP proposes extending the depreciation roll-over relief provisions for businesses affected by the Canterbury earthquakes for a further five years, to the end of the 2023-24 income year.

For more information see the Minister of Revenue’s media statement, the SOP, and the regulatory impact assessment.

13 August 2018

An amendment to New Zealand’s double tax agreement with Hong Kong has now entered into force. The amendment widens the exchange of information provisions for the purposes of eradicating tax evasion and avoidance. It brings the agreement with Hong Kong into line with the majority of New Zealand’s other double tax agreements by enabling the automatic exchange of information between the two tax jurisdictions. For more information see the Minister of Revenue’s media statement.

2 August 2018

New Zealand has now ratified the OECD’s Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the “Multilateral Instrument”, or MLI), which is expected to enter into force for New Zealand from 1 October 2018.

This follows the recent enactment of measures to counter BEPS – activities multinational companies take to reduce the tax they pay.

The MLI will allow New Zealand to adjust its existing double tax agreements with other participating countries swiftly to adapt to the OECD’s new treaty provisions on anti abuse, dispute resolution and transfer pricing.

Normally these changes require a manual process of renegotiating each DTA individually. The MLI means New Zealand can do it automatically.

For more information, including the ratification status of other countries, see the OECD's information about the MLI.

Tax Working Group

For the terms of reference, news and other information see the Tax Working Group's website.

Highlights

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