Income protection The Financial Services Council is seeking a review Income tax insurance: a review of the income tax treatment of income protection insurance. There is a lack of clarity about the tax treatment of this form of insurance and inconsistencies across products offering similar benefits. Deductibility of Considering the deductibility of holding costs for Income tax holding costs for property. revenue account property Abusive tax position Examining the application of the abusive tax position Income tax penalty penalty in cases of tax avoidance, and whether any changes are needed to the penalty. Demergers Considering an exclusion from dividend taxation for Income tax corporate demergers. Petroleum mining Replacing the existing ability to spread back Income tax decommissioning petroleum mining decommissioning expenditure to expenditure earlier tax years with a refundable tax credit in the current year. Review of bank The bank account requirement for an offshore person Income tax account requirement to obtain an IRD number continues to cause issues in for offshore persons’ practice. In particular, it is an obstacle in a number IRD numbers of cases to people being able to comply with their tax obligations. Trust beneficiaries as There are instances when beneficiaries of trusts who Income tax settlors leave their beneficiary income in the current accounts with the trust become inadvertent settlors. This is not in accordance with the policy intent. Financial There are a variety of financial arrangement taxation Income tax arrangement issues issues ranging from remedial to policy enhancements to ensure these rules work as intended. Taxation of Extending the current securitisation regime to beyond Income tax securitisation vehicles Impact of case law Considering the impact of recent case law on the Income tax on the application of the voting interest test in the Income “voting interest” test for Tax Act 2007 and the Goods and Services Tax Act corporate trustees 1985 to corporate trustees. Repeal adverse This regime is, in practice, little used, because the Income tax events income main scheme offers more flexibility. However, its equalisation deposit existence can cause some confusion. regime Review of status Dealing with applications by organisations for donee Income tax applications status under schedule 32. Treaty of Waitangi Tax implications of Treaty settlements are addressed Income tax settlements as required.
Income protection insurance: a review The Financial Services Council is seeking a review of the income tax treatment of income protection insurance. There is a lack of clarity about the tax treatment of this form of insurance and inconsistencies across products offering similar benefits. Income tax Deductibility of holding costs for revenue account property Considering the deductibility of holding costs for property. Income tax Abusive tax position penalty Examining the application of the abusive tax position penalty in cases of tax avoidance, and whether any changes are needed to the penalty. Income tax Demergers Considering an exclusion from dividend taxation for corporate demergers. Income tax Petroleum mining decommissioning expenditure Replacing the existing ability to spread back petroleum mining decommissioning expenditure to earlier tax years with a refundable tax credit in the current year. Income tax Review of bank account requirement for offshore persons’ IRD numbers The bank account requirement for an offshore person to obtain an IRD number continues to cause issues in practice. In particular, it is an obstacle in a number of cases to people being able to comply with their tax obligations. Income tax Trust beneficiaries as settlors There are instances when beneficiaries of trusts who leave their beneficiary income in the current accounts with the trust become inadvertent settlors. This is not in accordance with the policy intent. Income tax Financial arrangement issues There are a variety of financial arrangement taxation issues ranging from remedial to policy enhancements to ensure these rules work as intended. Income tax Taxation of securitisation vehicles Extending the current securitisation regime to beyond Income tax Impact of case law on the “voting interest” test for corporate trustees Considering the impact of recent case law on the application of the voting interest test in the Income Tax Act 2007 and the Goods and Services Tax Act 1985 to corporate trustees. Income tax Repeal adverse events income equalisation deposit regime This regime is, in practice, little used, because the main scheme offers more flexibility. However, its existence can cause some confusion. Income tax Review of status applications Dealing with applications by organisations for donee status under schedule 32. Income tax Treaty of Waitangi settlements Tax implications of Treaty settlements are addressed as required. Income tax