New IRD anti avoidance guide on the way

The Inland Revenue Department is preparing a new interpretation statement on the general anti avoidance provisions in the Income Tax Act.

Inland Revenue has assured the Institute f Chartered Accountants that there has been no change in its policy with regard to either engagement with tax agents or its approach to dealing with taxpayers.

Proposed new rules confirmed today as part of the wider tax shake-up will eliminate landlords’ and businesses’ ability to claim depreciation on buildings and tighten the rules for LAQCs.

News the government is to abolish gift duty – confirmed by Revenue Minister Peter Dunne – may not mean the end of the current system for transferring property assets into trusts.

Plans to give credit rating agencies access to individual tax files have been abandoned by government over fears taxpayers could be pressured into paying demands which were in dispute.

Revenue Minister Peter Dunne today confirmed the government's intention to abolish gift duty, saying the decision would be welcomed by taxpayers generally as the rules were resulting in a high level of compliance costs and were no longer raising significant revenue.

Changing to a look-through company is one of the alternatives for investors under new proposed tax rules.

The government's annual deficit shrank as bigger returns from the ACC and New Zealand Superannuation Funds helped make up for a declining tax take.

The Government will be introducing new rules preventing loss attributing qualifying companies (LAQCs) from passing losses on to their shareholders said Minister of Revenue, Peter Dunne today.

The Government will amend tax legislation after IRD officials have identified concerns with the tax implications of asset disposal costs, including demolition costs, from the Canterbury earthquake, Revenue Minister Peter Dunne said today.