Terry’s Tax Roundup – 23 – 28 February 2019
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tax conference, tax audit, Terry Baucher, ATAINZ

Terry’s Tax Roundup – 23 – 28 February 2019

The week’s tax news in one handy summary. 

New Zealand Tax

  • More from me on the TWG’s final report. This time looking in detail at the CGT proposals.

Bonus feature: click on the link in the article to listen to me and @JeneeTibshraeny discussing the report


  • Just re-upping my initial take on the TWG report


  • Excellent column here from @AnnaGConnell cutting through the noise around the issue | Capital gains tax – should we care?


  • An alternative view on the potential impact of CGT | Westpac’s chief economist says a capital gains tax would lead to higher living standards


  • TWG recommends “taxpayers should have five years from Valuation Day (or to the time of sale if that is earlier” to obtain valuation | Capital Gains Tax: Automated mass valuations could be used to value Kiwi properties


  • Just re-upping my latest column which looks at some of the key points in the proposed CGT


  • Also re-upping this excellent column from @AnnaGConnell which cuts through the noise around the issue | Capital gains tax – should we care?


  • Some reasoned Interesting commentary on CGT from academics in jurisdictions where it is long established | ‘New Zealand is joining the modern world, tax-wise’


  • A very real issue. The TWG propose rollover relief in a divorce deferring the tax until the asset is sold | The Ex-Files: How a capital gains tax could impact your divorce


  • Something to keep in mind – this is why the TWG recommended against further increases | Think Capital Gains Tax is expensive? Try smoking


  • Fellow tax nerd @David_EY_tax with his initial take on the TWG report. His concerns are about a “full” CGT | Implementing capital gains tax will be ‘incredibly difficult’


  • Complexity is a by-product of NZ’s unique tax-tax-exempt approach to retirement savings | Warnings over proposed tax changes to KiwiSaver


  • Top work here from @RodOramnz and I agree wholeheartedly there is so much more than CGT in the TWG report | Looking past the capital gains tax obsession


  • As some of you might be aware I am on the Government’s Small Business Council.  If you are a small business owner or manager please take this short Small Business Survey and help shape the NZ small business strategy


  • Richard Abel, ATAINZ Chair, opens this year’s conference in Nelson


  • Some interesting statistics from Gaye: the expected additional tax revenue from Business Transformation is between $2.8 and $6.1bn by 2023-24
  • Next up is Phil Riley, Head of Business Customer Service Delivery for ACC


  • Phil also has some big statistics: $4.1bn levy income; $4 bn claims costs; 2 million new claims, 97% of which were accepted; 102,000 people receive weekly compensation
  • ACC during the year to 30 June 2018 paid for 38,000 surgeries, 1 million GP visits and maybe 6 million physio, osteopath & other specialist visits
  • At any given time ACC is paying 40,000 people weekly compensation
  • Did you know ACC just migrated 37 million records onto a new mainframe? No? That’s because it went seamlessly.
  • ACC spends $160 million per year on claims for 16-24 year old males.
  • Previously ACC got about 1,000 feedback submissions on levy adjustments. By engaging more widely this rose to 6,000
  • Non-earners account (eg children, superannuitants and beneficiaries) most under pressure in terms of funding
  • ACC will be changing how it invoices self-employed
  • According to Phil Riley the biggest feedback point ACC receives from business owners is that they don’t see the value in ACC for what they pay. His response it is about the assurance ACC provides which is often unseen
  • “How does payday filing help small businesses and their compliance costs?” Very good question and Corey honest enough to admit that main benefit is for employees and tax collection
  • Probably the most appropriate slide you’ll see at a tax conference…


IRD news

  • Meanwhile back in the real tax world @NZInlandRevenue has now made available its R&D tax incentive draft guidance material


  • Gaye Searancke, Deputy Commissioner Inland Revenue, is the first speaker at this year’s ATAINZ conference. She’s talking about @NZInlandRevenue Business Transformation


  • Gaye Searancke advises that @NZInlandRevenue will be shut down from the afternoon of 18th April until the afternoon of 26th April as it rolls out Release 3. At present 150 people are testing its new systems
  • In the run-up to Release 3 @NZInlandRevenue has so far tested 70,000 scenarios, 20,000 more than done for Release 2 in 2018.
  • According to the Deputy Commissioner, @NZInlandRevenue is expecting 1.8 million calls between April & August, 23% more than in 2018. To help it has recruited a further 325 staff for its call centres.
  • Now back to @NZInlandRevenue and Corey Sinclair, Community Compliance Lead. He’s talking in more detail about the changes coming for employees from 1st April


  • Bravely, perhaps, Corey has opened the floor to questions. Interestingly, he advises that current status of Release 3 is green/light amber, an improvement from amber reported to the Minister of Revenue in November

I follow interesting tax news stories from around the world and share them on Twitter. 

These are a selection of our best tweets from the previous week. 

If you’d like to see all of our tweets, feel free to follow us @BCLTax or join our newsletter to receive this weekly in an email.

Terry Baucher Terry Baucher is an Auckland-based tax specialist with 20 years experience. He works almost exclusively with high net worth individuals and owners of medium sized and emerging businesses. Prior to starting his own business, he spent six years with one of the "Big Four' accountancy firms including a period advising Australian businesses how to do business in New Zealand.

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