The table below lists interpretation guidelines and interpretation statements issued 2013 alphabetically by title.
This Interpretation Statement considers the application of section DB 5, which provides for the deductibility of expenditure incurred in borrowing money for use as capital in deriving income. It considers the relationship between section DB 5 and the financial arrangements (FA) rules, and looks at when borrowing costs may be deductible under section DA 1 (the general deductibility provision).
The transitional operational statement outlines an approach that will enable taxpayers who have already entered into certain arrangements some time to transition into the expected treatment (see Operational positions in the left hand menu).
This Interpretation Statement concerns whether certain rights conferred by the Companies Act 1993 could give rise to a 'shareholder decision-making right' as defined in section YA 1 of the Income Tax Act 2007. This statement addresses an issue that has been raised by taxpayers and their advisers in the course of a number of private binding ruling applications.Date of issue: 16 September 2013
This interpretation statement outlines the Commissioner's view of the law on tax avoidance in New Zealand. It sets out the Commissioner's view of the principles to be applied and provides a framework within which those principles will be applied. The Commissioner applies the approach to sections BG 1 and GA 1 established by the Supreme Court in Ben Nevis Forestry Ventures Ltd v Commissioner of Inland Revenue  NZSC 115 and subsequently confirmed in all relevant judicial decisions. Flow charts and examples illustrating how the approach is worked through are included. The statement also discusses various legal issues that may arise.
This statement replaces the Commissioners statement on section 99 of the Income Tax Act 1976 (Appendix C to the Tax Information Bulletin, Vol 1, No 8, February 1990).