Taxpayers will continue to file their income tax returns at IRD district offices. The processing of disclosure returns will be centralised in a special unit of the Department. The unit will be staffed by personnel specialising in the monitoring of income earned by residents under this regime. Such centralisation will facilitate investigation and the cross-checking of returns and hence their consistent treatment. Comprehensive auditing will also be possible. The Government will ensure that the necessary resources are committed to enable the international tax regime to be effectively monitored and enforced. GLOSSARY OF TERMS Accounting year the 12-month period ending with the taxpayer's balance date. – Associated persons individuals and companies associated within the meaning of section 8 of the – Income Tax Act. Branch-equivalent basis the method for determining a taxpayer's income from an interest in a – non-resident company or trust where the taxpayer has sufficient information to calculate the income of the company or trust in accordance with New Zealand tax rules. Comparative-value basis the method for determining the annual increase or decrease in the – market value of an interest in a non-resident company or trust. Dividend Adjustment Balance (DAB) the amount of non-portfolio dividends that will be subject – to the post facto adjustment. Distribution from a non-resident trust any amount which vests indefeasibly in a beneficiary. – Imputation Credit Account an account to be established by companies to record the amount of – imputation credits available for allocation to shareholders.
Taxpayers will continue to file their income tax returns at IRD district offices. The processing of disclosure returns will be centralised in a special unit of the Department. The unit will be staffed by personnel specialising in the monitoring of income earned by residents under this regime. Such centralisation will facilitate investigation and the cross-checking of returns and hence their consistent treatment. Comprehensive auditing will also be possible. The Government will ensure that the necessary resources are committed to enable the international tax regime to be effectively monitored and enforced. GLOSSARY OF TERMS Accounting year – the 12-month period ending with the taxpayer's balance date. Associated persons – individuals and companies associated within the meaning of section 8 of the Income Tax Act. Branch-equivalent basis – the method for determining a taxpayer's income from an interest in a non-resident company or trust where the taxpayer has sufficient information to calculate the income of the company or trust in accordance with New Zealand tax rules. Comparative-value basis – the method for determining the annual increase or decrease in the market value of an interest in a non-resident company or trust. Dividend Adjustment Balance (DAB) – the amount of non-portfolio dividends that will be subject to the post facto adjustment. Distribution from a non-resident trust – any amount which vests indefeasibly in a beneficiary. Imputation Credit Account – an account to be established by companies to record the amount of imputation credits available for allocation to shareholders.