New Zealand Taxation Principles, Cases & Questions 2024

New Zealand Taxation 2024: Principles, Cases and Questions contains all the updated information necessary for the 2023-24 income tax year.

Chapter 1, The Tax Environment notes recent reports evaluating aspects of the tax system including from Inland Revenue on the median effective tax rates paid by high-wealth individuals. The new Taxation Principles Reporting Act 2023 is discussed.

Chapter 10, Depreciation looks at legislation introduced in May 2023 where “building” will include part of a building to the extent to which it is unit titled. Under specific classes of assets, software, has an update on the deductibility of this asset class. There is a note on amendments introduced to depreciation rules for buildings and other property damaged or considered uneconomic to repair in response to the January and February 2023 weather events. Chapter 11, Trading Stock, discusses a change allowing trading stock donated after flooding events to be treated similarly to that during the Covid-19 pandemic.

Chapter 12, Losses, has discussion on Interpretation Statements IS 22/06: Loss carry-forward, continuity of business activities and IS 22/07: Company losses, ownership continuity, sharing and measurement, providing guidance on how the loss carry forward rules operate, and the criteria companies are expected to meet to satisfy s IB 3 of the ITA.

Chapters 13 and 14, Calculating Tax and Tax Payments have all the new 2023-24 tax year tables and examples that allow the calculation of income tax liability for individuals and businesses; chapter 18 Primary Industries contains the updated livestock values and useful examples for farm accounting calculations. Chapter 27 Social Assistance contains the new figures for tax credits administered by Inland Revenue, and benefits and allowances administered by the Ministry of Social Development.

Chapter 17, Charities discusses new Operational Statements from Inland Revenue setting out the tax obligations and benefits for entities in the not-for-profit sector, and a new section on a charity’s tax obligations when it ceases to be a tax charity. Chapter 21 Fringe Benefit Tax has an update on the exemption status of certain subsidised transport vehicles including self-powered and low-powered vehicles.

Chapter 24, Disputes and Penalties has been updated to reflect Standard Practice Statement SPS 23/01: Disputes process. And there is a note on Parore v Attorney-General [2023] NZHC 1010, (2023) 31 NZTC 26-003, where the High Court awarded damages to the taxpayer for the Commissioner’s breach of their right to silence.