Author: Jeff Owens

The dating world sure has changed over the years.  Technology is playing an ever increasing part in the process with prospective partners undertaken significant data matching and compatibility testing.

It may not seem overly romantic for some but there appears little doubt the algorithms are viewed by many as at least partially and initially effective.

It is not only the dating world where data and algorithms are becoming commonplace.  Increasing we are also seeing IRD ‘swiping right’ and applying a technological driven approach.  Ever been stalked?

IRD is happy to “date locally” and has been reviewing land transaction records within New Zealand.  IRD picks up property transaction data and often assumes a change in a title means a purchase or acquisition – this includes change in trustees, change in name (eg from marriage or divorce), even subdivision and issuing a new title.  We will be publishing an expanded item later this year.

We have seen clients receive specific investigative/please explain correspondence from IRD in relation to application of Brightline provisions to land they appear to only have owned for a few months based on a certificate of title received after a subdivision, notwithstanding that the underlying undivided land had been held by the same taxpayer for more than 25 years.

Double Tax Agreements have recently been amended to include exchange of information provisions.  Where no Double Tax Agreement exists, IRD is also entering into separate exchange of information provisions.  As a result, the New Zealand IRD enjoys an unprecedented level of cooperation and information gathering with other revenue authorities from around the world. 

We have also seen frequent IRD reviews where existing NZ taxpayers have a foreign banking service provided such as a credit card or similar and IRD proactively seek explanation and confirmation that all foreign income has in fact been returned in New Zealand.

While IRD may have a little way to go yet on the use of technology, we all need to remain cognizant that technology is being used to an ever increasing degree.  It is currently being used to drive audit and review selection and at least initial queries.  Be sure to practice safe tax and engage an expert chaperone!!

In 1789 Benjamin Franklin wrote “….in this world, nothing is certain except death and taxes”.  Since early 2020 the Covid 19 pandemic has turned our world upside down – creating uncertainty at a level most of us have never seen and providing a sobering reminder of just how accurate Franklin was all those years ago.

Since New Zealand’s first (and to date only) national lockdown was mandated in March 2020 we have had many enquiries from prospective clients wanting to return to or immigrate to New Zealand, physically in New Zealand and unable or unwilling to return to their home country, and on rare occasions wanting to leave New Zealand.

Such arrivals and departures often have implications for tax residence, and Covid 19 modifications to residence rules applying sometimes introduces additional complexities.

In the following article we discuss some of the interesting situations on which we have advised.

Read on “Death, taxes and COVID 19”

 “do we really believe the Commissioner isn’t doing this on purpose”

I am sure we are all pleased about the automation of many tax matters. A number of boring aspects of a tax agent’s job have disappeared. Many tasks of yesteryear added little value for clients.

However since the advent of IRD’s new $1.7 billion computer system “START”, IRD has been promulgating a myth that tax is automatic and that instead of engaging an agent or tax expert, taxpayers are better to deal directly with IRD.

Where income is all from paye or NZ interest and dividends, tax can be automated. Those taxpayers don’t have and don’t need a tax agent or other expert.  However other taxpayers’ affairs are more complex and they do need expert assistance. Suggesting everything is automatic is disingenuous and naïve.

Read on “Ready fire aim – IRD bombarding our clients with duplicated and incorrect information”

In late 2016 IRD published a reasonable if somewhat wordy policy for communicating with stakeholders by email. 

Some time later, as part of a general website refresh,  IRD removed the link to its policy, and refuses to load it until it has completed another review

To summarise:

• A customer, agent or nominated person can give telephone permission to communicate by email
• Subject lines should be meaningful
• IRD will reply to an email without deleting the original ‘string’
• Confidential material in an attachment can have an agreed password, but no zipping or ‘encryption’
• Working spreadsheets or other documents can be emailed if they make it easier for a case to progress (which of course it always will)
• IRD staff best practice recommends turning on ‘read receipts’ ,and where appropriate “out of office” messages (and we should extend the same courtesy)

I am not aware of any substantive change to the principles and the Commissioners office has confirmed they remain in force

Here is a link to IRD’s previously published policies in Owens Tax archives.

https://www.dropbox.com/sh/oyzzaozodzsy7af/AAB7m6OhrlFBzKihH23G_kfta?dl=0