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

6 November 2019

Advisers have sought assistance from Inland Revenue on the correct tax treatment of MKP Milk Price Futures Contracts, which are derivative contracts traded on the NZX Derivatives Market.

Inland Revenue officials have released for feedback a draft general financial arrangements determination for Milk Price Futures Contracts. The proposed determination is intended to clarify and simplify the tax treatment of these contracts. The finalised determination will apply to all such transactions entered into on or after 1 April 2020.

For more information see the consultation page and draft determination. The closing date for submissions is 13 December 2019.

7 October 2019

There is currently a lack of clarity around the deductibility of holding costs (for example, rates, interest, insurance, and repairs and maintenance expenditure) where land that is subject to tax on sale is used privately while it is held.

A second consultation document for the land tax review, Holding costs for privately used land that is taxable on sale, was released today. The document discusses options for clarifying this area of the law. Submissions close on 1 November 2019.

23 September 2019

The Government has announced its intention to proceed with two measures recommended by the Tax Working Group:

- allowing a deduction for feasibility expenditure for businesses; and

- relaxing the loss continuity rules.

Revenue Minister Stuart Nash says that early next year he intends to include the proposal on feasibility expenditure in a taxation bill and that public consultation would take place on loss continuity rules.

For more information see the media statement from the Ministers of Finance and Revenue.

18 September 2019

New Zealand has signed a protocol amending the Tax Information Exchange Agreement (TIEA) with Guernsey. The protocol updates the TIEA to include model treaty provisions to prevent tax treaty abuse and improve dispute resolution as recommended by the OECD and G20. The agreement will come into force once both countries have given it legal effect. For more information see the text of the Protocol.

16 September 2019

The rules that tax certain sales of land contain exclusions from tax for people who use that land as their main home, residence or business premises. However, these exclusions are not meant to apply where the taxpayer has a “regular pattern” of buying and selling land used as a main home, residence or business premises.

A tax policy consultation document, Habitual buying and selling of land, was released today because there are concerns that the current regular pattern restrictions are not working as intended. The document discusses those concerns and proposes possible solutions. Submissions close on 18 October 2019.

Tax Working Group

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

Information releases

We now proactively release Cabinet papers, minutes and supporting papers for tax policy related decisions. View the latest information releases.

Highlights

Two pre-Budget announcements were made by the Government today.

GST on...

The Taxation (Research and Development Tax Credits) Act 2019 received Royal assent yesterday....

The Minister of Revenue, Hon Stuart Nash, spoke at the International Fiscal Association’s...