New Zealand: TaxTips

See PwC New Zealand's latest TaxTips which provides insights, commentary and up-to date news relating to New Zealand tax developments. Tax Tips Issue 9/2015 includes comments on proposed changes to simplify and improve the collection of tax on employee share purchase arrangements; recent developments for ‘investor migrants’ to New Zealand; increased scrutiny on transfer pricing; and the proposal (in a Bill introduced to Parliament) to introduce a two year ‘bright-line’ test under which gains from the disposal of residential property that is acquired and disposed of within two years will be taxed (subject to some exceptions) without regard to the vendor’s intention relating to acquisition of the property. Tax Tips Issue 10/2015 – includes commentary on proposed changes to the taxation of closely held companies and relief for related part debt remission.

New Zealand: Proposal for residential land withholding tax

New Zealand’s Inland Revenue is seeking feedback on proposals for a residential land withholding tax. The Issues Paper suggests that a withholding tax be introduced on sales of residential property from 1 July 2016 where the vendor is a foreign investor and the two year ‘bright-line’ test (as noted above) applies.

Common Reporting Standard

The Commonwealth Treasury has released exposure draft legislation to give effect to the legislative requirements for Australian financial institutions in implementing the Common Reporting Standard (CRS) of the Organisation for Economic Co-operation and Development (OECD) for the automatic exchange of financial account information, effective from 1 January 2017. Specifically, the draft law will require certain Australian financial institutions to report information to the Commissioner of Taxation about financial accounts held by foreign residents. In order to identify relevant accounts, financial institutions will need to carry out the due diligence procedures outlined in the OECD’s Standard for Automatic Exchange of Financial Account Information in Tax Matters. Comments on the exposure draft are due by 9 October 2015.

Negotiations for tax treaty with Israel

On 17 September 2015, the then Federal Treasurer announced that Australia will commence negotiations for a new Double Tax Agreement with Israel. The treaty will aim to reduce the incidence of double taxation as well as providing greater certainty for businesses. Submissions are due by 30 October 2015.

Multinational anti-avoidance legislation

This Tax Insights publication provides an overview of the proposed multinational anti-avoidance legislation introduced into Parliament on 16 September 2015.