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

10 December 2019

Inland Revenue is seeking public views on policy proposals to ensure that parties to the sale of a business or commercial property adopt the same allocation of the global price to the various assets, and base this allocation on relative market values.

For more information see the issues paper. The closing date for submissions is 14 February 2020.

29 November 2019

Updated information to help businesses claim the R&D Tax Incentive is now available. An updated R&D Tax Incentive guide reiterates the policy intent from the October 2019 Tax Information Bulletin (Vol 31 No 9), and includes the latest news on the operational design. A fact sheet on the R&D Tax Incentive supplementary return provides details of the information required. The R&D supplementary return will be available for filing electronically, after balance date, through myIR.

Draft guidance on proposed changes to the R&D Tax Incentive included in the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Bill is also available for feedback. While subject to change during the Parliamentary process, the draft guidance covers the proposed changes to the eligibility of organisations that receive exempt income, the refundability rules, and the internal software development definition.

Suggestions for improvements to the draft guidance (PDF 262 KB) can be made on the R&D forum or by email to R+Dincentive@ird.govt.nz. Please provide your feedback by 11 February 2020 so that it can be considered for the next update.

27 November 2019

Revenue Minister Stuart Nash announced that New Zealand would participate in the Hague Convention relating to child support recovery. The Convention will help Inland Revenue find liable parents living overseas.

For more information see the Minister’s media statement.

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.

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...