TalkTax

Outstanding tax lawyers to be recognised in New Zealand’s ‘client choice’ awards

TAX LAWYERS now have their own separate accolade at the premier awards for the New Zealand legal profession, with the introduction of the CCH Tax Law Award for the upcoming 2010 New Zealand Law Awards™ (Law Awards). Now in its sixth year, the New Zealand Law Awards™ recognise the “cream of the legal profession” and are the highlight of the local legal calendar as the only event in New Zealand that celebrates and rewards excellence in client service by law firms and barristers as judged by their clients, and by in-house legal teams as judged by their legal peers. Read more

…and so the battle continues between a tax “genius” and the IRD. Since the 1980s, Mr J G Russell (Mr Russell) has been involved in legal disputes with the IRD over various schemes designed to reduce liability for income tax on companies he consulted to. The IRD claims that he owes millions of dollars in back taxes, which has since grown, with penalties and interest, to a whopping $138m. Read more

Received anonymously:

The Rewrite Advisory Panel (RAP) was established to advise rewriters of the Income Tax Act 1994. The Income Tax Act 2004 saw the RAP becoming the arbiter on possible unintended legislative changes and the Income Tax Act 2007 saw it becoming the overseer of the clarity of that Act (see: www.rewriteadvisory.govt.nz)

In 2009, a submitter raised with the RAP the definition of ‘revenue account property’ (the second RAP referred to in the title but, to avoid confusion, I do not use that acronym in this note). The submitter said:–

Read more

Yesterday the Government announced that the new Australia/New Zealand double tax agreement has entered into force. This means that both countries have completed their domestic law requirements for incorporating the treaty into their respective laws. The way is clear for the provisions of the treaty to apply.

The application dates are different for different types of tax. The first relevant application date is the provisions relating to Fringe Benefit Tax (“FBT”).  Briefly the Article provides that FBT will follow the taxing rights of salary and wages, thereby reducing the possibility of double FBT. The provisions apply from 1 April 2010, and is slightly different compared with the 1995 treaty position.

Read more

It’s been great getting some feedback on thoughts around the design of the tax system. Following on from those thoughts, given the Government’s heads up for property investors it would be great to hear some thoughts on this subject.

In this regard it is noted that it is difficult to reconcile is the view (accepted) that “the tax system lacks integrity and fairness because of differences in the treatment of entities” with the statement that the Government will “be making changes to the way property is taxed.”

Read more

Tax is topical right now.  The Tax Working Group reports have made headline news around the country.  Should a new land tax be introduced? Should GST be increased?  Is it time for a comprehensive CGT?

Whether we like a tax, however it is imposed, is largely irrelevant.  If a tax is imposed we’re stuck with it.  That said, it is generally accepted that a “good” tax is one that is seen to be fair (so that less effort goes into evasion) and one that is not so expensive to administer that it contributes little to the tax base.

Read more