Tax Tips is published by PwC New Zealand and provides regular updates on the latest developments in tax law and policy.
In this issue:
- New tax bill
The Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill was introduced into Parliament last month and received its first reading on 27 September. Submissions on the Bill were due on 20 October – the date of Parliament’s dissolution prior to the 2011 General Election. The Bill has now lapsed but we expect it to be reinstated by the next Government. We summarise the main features of the Bill in the latest edition of Tax Tips.
- Depreciation of commercial fit-out
In May 2010, the depreciation rate for most buildings was reduced to 0% from the beginning of the 2011-2012 income year. As a result, the depreciation of fit-out in existing commercial buildings has been an area of uncertainty for many taxpayers. Earlier this month, Inland Revenue issued an exposure draft which clarifies that a taxpayer cannot re-characterise a part of a commercial building into items of commercial fit-out to claim depreciation when those items had not been identified as separate depreciable property at the time of acquisition.
- Other new Inland Revenue statements
We also discuss three further Inland Revenue statements issued recently relating to look-through companies and interest deductibility, the deductibility of company administration costs, and the application of the Commissioner's discretion to disclose taxpayer information.
- Tax treaty update
We provide an update on recent developments relating to New Zealand's double tax agreements with Hong Kong, Turkey, Mexico, and Chile.