Feedback was received earlier this year on changes proposed in the officials’ issues paper Review of the thin capitalisation rules. Proposed changes in the issues paper included extending the rules to New Zealand businesses controlled by a group of non-residents acting together, and also to disregard some shareholder debt when calculating the worldwide group ratio.

Refined proposals based on submissions are set out in Thin capitalisation review: technical issues. Feedback is invited by 28 June 2013.

A tax policy officials’ issues paper released today looks at two problems with the application of GST zero-rating rules relating to services supplied to non-residents who are off-shore. The problems primarily affect the immigration industry, but the suggested solutions may have broader implications. The first problem concerns the difficulty in knowing the location of the non-resident at the time services are supplied. The second problem concerns the interaction between the zero-rating rules and the income tax residence rules. Possible ways to resolve the problems are outlined in the issues paper The GST treatment of immigration and other services. Submissions close on 5 July 2013.