Name: John, aka "John Peterson"
Email:
Web Site: http://www.minterellison.co.nz/index.php/ps_pagename/personprofile/pi_peopleid/116
Bio: LLB (Hons), MA, BCL, LLM (International Taxation). John is a tax partner at Minter Ellison in Wellington In addition to providing general commercial tax advice, John assists clients in identifying asset planning solutions and represents individuals, trustees and companies in disputes with the Inland Revenue. Contact Details: DDI: +64 4 498 5028 Mobile: +64 21 895 559 Fax: +64 4 498 5001
Posts by John Peterson:
AIL and the interest exemption under the US and Australian DTAs
January 24th, 2012The Approved Issuer Levy (AIL) rules were introduced in the early 1990s. The rules were designed to reduce the cost suffered by borrowers as a consequence of New Zealand’s non-resident withholding tax (NRWT) regime.
Absent the AIL regime, a New Zealand borrower is generally required to withhold NRWT from New Zealand sourced interest payments made to a non-resident lender unless that lender has a fixed establishment in New Zealand. NRWT must be deducted by the borrower from the interest payment and generally represents the lender’s final New Zealand tax liability in respect of that interest. Read the rest of this entry “
It’s happening everywhere ..
November 22nd, 2011An EY global survey, highlighted in a recent article in the Sydney Morning Herald indicates that increases in audit activity are part of a broader global trend. The paper writes:
An annual survey by the global accounting firm Ernst & Young found tax authorities are becoming more aggressive and forcing companies and governments into more clashes over tax laws, The survey, based on interviews with 541 senior tax and finance executives, concludes that the world has entered a period of elevated risk for tax controversy. Findings were that audits are more frequent and aggressive, making them more costly to defend or litigate. Tax assessments and penalties have now entered the realm of billions of dollars. Companies [also] face unprecedented scrutiny and reporting of their tax affairs by advocacy groups and the media. Read the rest of this entry “
Falls Road – when GST is not just part of the purchase price
November 9th, 2011A recent HC decision has interesting implications for the payment of GST in property settlements that involve nominees. In this case:
(a) Fletcher agreed to sell land to the Hulls, who nominated Falls Road to complete the transaction.
(b) The GST ($650k) was payable before settlement and so a GST invoice was issued by Fletcher and Falls Road paid the GST to Fletcher.
Taxation of UK Pensions – Ignorance is bliss?
November 7th, 2011Last weekend’s NZ Herald has an article on the IRD’s approach to the taxation of UK pension schemes.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10764091
The way NZ taxes foreign pension schemes is complex and (as a consequence) poorly understood. The IRD have had an overhaul of the regime on their (very long) to do list for quite some time. The IRD have apparently indicated that audit and enforcement action against NZ tax residents with UK pensions will be suspended pending the outcome of a more general policy review of this area.
KIWISAVER TO KIWIPAYER IN 2011 BUDGET
May 19th, 2011WHAT ARE THE CHANGES?
- From 1 April 2013 the minimum employee and employer contribution rate will rise from 2% to 3%.
- From 1 April 2012 the tax-free status of employer contributions to KiwiSaver and other complying superannuation funds will end. All employer contributions will be subject to Employer Superannuation Contribution Tax (ESCT) paid at the employee’s marginal tax rate. This means that while the gross amount of employer contributions is increasing by 50% in 2013, it may not result in a significant amount actually being credited to your Kiwisaver account. If you are a top marginal rate taxpayer there will be no net increase to the overall level of employer contribution.
Recent Cases from the Canadian Courts
February 15th, 2011Three recent cases from the Canadian Courts that will be of interest to New Zealand practitioners.
Amounts paid to employees to extinguish employee stock option plan a non-deductible capital outlay
Company made payments for exercise of employee stock options. Minister refused to permit deductions on the ground that they were non-deductible capital outlays laid out during a corporate reorganisation to rid the taxpayer of its employee stock option plan. Taxpayer argued the amount was deductible as employee compensation paid to satisfy its obligations under its employee stock option plan. Taxpayer’s appeal dismissed. Imperial Tobacco Canada Limited, 2011 DTC 1037
Savings Group recommends raising GST to 17.5%
February 1st, 2011The tax cut that took effect for most taxpayers from 1 October last year achieved a seismic shift in the burden of taxation (from income to consumption and from high to low thresholds). While you can quibble with the fairness of raising consumption taxes by 20% to pay for what was essentially a tax cut for the wealthy, there is no denying that the change addressed certain distortions that had crept into our economic system as a result of high marginal rates.
Yet another reason to vote Labour (in search of a truly courageous politician)
January 26th, 2011Labour’s tax policy threatens to make tax interesting again. Yesterday, Phil Goff announced that, if elected, it would scrap income tax on the first $5,000 of income and introduce a new top rate for the highest earners (the rate of tax and the threshold for that tax are not part of the policy announcement – that is being left up to the voters’ imagination).
The lighter side of losing your job
October 18th, 2010On September 30 the Government announced that it will re-instate the redundancy tax credit and make it available to taxpayers up to 31 March 2011. The extension is intended to assist people affected by the Christchurch earthquake although it appears that it will apply to all employees who are made redundant before April next year.
The tax credit is available to an employee who receives a redundancy payment in compensation for their loss of employment. The employee must apply directly to the IRD for the credit. The tax credit is 6 percent of the amount of the redundancy payment up to a maximum of $3,600. It seems that employers and employees are not well-informed about the benefits of this credit and are not using it to their best advantage. Read the rest of this entry “
Minister Encourages Taxpayers to Avoid GST
October 15th, 2010Yesterday Peter Dunne issued a press statement calling on the citizenry to call up their power companies and insist that they be billed for their September power consumption at the old 12.5% GST rate. Mr Dunne feels that these companies should have made more of an effort to utilise the transitional rules in the GST act that permit invoices dated before 30 September to be issued (after that date) at the 12.5% rate.
Oh the irony of having a Minister of Inland Revenue issue a press release expressing his disappointment at those taxpayers who are not make enough of an effort to avoid paying taxes.
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