Tag: Inland Revenue

Foreign investment funds – IRD forcing default calculation method to maximise collection of tax and deny taxpayers’ rights

In late 2022 the Commissioner issued a rotten Christmas present to taxpayers, asserting that when a taxpayer has FIF interests and is late filing a tax return the Commissioner gets to deny a calculation methodology specifically allowed by legislation. Bah humbug.  Submissions close 10 February 2023.

Full details below and at : Foreign investment fund (FIF) default calculation method (ird.govt.nz)

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Critical errors on IRD MyIR website

IRD continues to encourage clients of tax agents to contact IRD direct and in particular to view their MYIR website.  The content is often misleading or incorrect.

We have alerted IRD to three critical fixes required:

  1. In respect of Covid-19 and impact on tax obligations, IRD must tell taxpayers to contact their agent in the first instance, and only if that is not available (Eg they don’t have an agent) to contact IRD
  2. Remove the obviously incorrect statement that 2020 returns are due and must be filed NOW. [2 April update:  IRD appear to have removed this]
  3. Fix the longstanding issue of stating that tax is payable when it actually relates to a future obligation

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Residential Property Brightline Test

An interesting article was published in Stuff on 23 January 2020:

www.stuff.co.nz/business/118961210/inland-revenue-slaps-property-traders-with-125m-tax-bill

The article is broadly about the tax Brightline Test which taxes capital gains on real property bought and sold within a specified period.

The Stuff article includes some misleading comments and also highlights a critical error (albeit by omission) in the way IRD tells taxpayers how the Brightline period is calculated.

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