menuIcon
logo
searchIconxIcon
LeftArrow
logo
Schools
<Back to Tax Law
<Back to Tax_Law
LAWCOMM 403 long notes.docx-CONTENTS Tip...
LAWCOMM_403_long_notes.docx-CONTENTS Tips ......................................................................................................................................................................................... 4 Introducon ............................................................................................................................................................................
College:
Vanderbilt...
Vanderbilt_University
Department:
Bio
Bio
Course:
Tax Law
Tax_Law
|
|
|
LAWCOMM 403 long notes.docx
LAWCOMM_403_long_notes.docx
Showing 63-64 out of 157
LAWCOMM 403 long notes.docx-CONTENTS Tips ...........
LAWCOMM_403_long_notes.docx-CONTENTS Tips ......................................................................................................................................................................................... 4 Introducon ............................................................................................................................................................................
LAWCOMM 403 long notes.docx-CONTENT...
LAWCOMM_403_long_notes.docx-CONTENTS Tips ......................................................................................................................................................................................... 4 Introducon ............................................................................................................................................................................
 Share with your friendsShare
Page 63
o
NZ superannuaon payments;
o
parental leave payments;
o
pensions;
o
veterans’ pensions.
SUBPART CG – RECOVERIES
Income includes recoveries such as:
o
depreciaon recovery
o
cancelled liabilies (where a deducon has been claimed)
o
insurance monies received for trading stock
SUBPART CH – ADJUSTMENTS
Income can include the adjustment of closing values of trading stock (
secon CH 1
)
o
“The value of the trading stock, calculated under secon EB 3 (Valuaon of trading stock), is income of the
person in the income year.” (
secon CH 1(2(
)
SUBPART CO – VOLUNTEERS
This subpart deals with volunteers.
SUBPART CP – PIES
A PIE is a porolio investment enty – a scheme like a bank (e.g. Kiwisaver) that gets different tax treatment (28%)
SUBPART CQ – ATTRIBUTED INCOME FROM FOREIGN EQUITY
Subpart CQ deals with:
o
CFC income
o
FIF income
SUBPART CR: INCOME OF INSURANCE COMPANIES
Subpart CR deals with income of life and general insurance companies.
SUBPART CS: REPEALED
Subpart CS dealt with various problems arising in the taxaon of superannuaon. It was repealed in 2011.
SUBPART CT: INCOME FROM PETROLEUM MINING
Subpart CT deals with various problems arising in the taxaon of petroleum mining.
SUBPART CU: INCOME FROM MINERAL MINING
Subpart CU deals with various problems arising in the taxaon of mineral mining.
SUBPART CV: SPECIFIC ENTITIES
Subpart CV deals with:
1.
group companies; and
2.
consolidated groups; and
3.
amalgamated companies; and
4.
Crown Research Instutes; and
5.
Maori authories;
6.
etc.
SUBPART CW – EXEMPT INCOME
This deals with income exempt from income tax. These are categories of income that would be within the scope of income tax,
but are not taxed for reasons of policy. However,
expenditure incurred in producing exempt income is not deducble
(
secon
DA 2(3)
)
.
Page 64
The various categories of exempt income include:
o
dividends received from foreign companies by companies resident in New Zealand: s CW 9:
o
dividends within wholly owned groups of companies: s CW 10;
o
some income derived by non-residents (other than entertainers and sportspersons) during visits of 92 days or
less: secon CW 19;
This exempon is in place for people who conduct their business travelling around and don’t stay very
long in one country
This is exempt because:
Significant administrave burden – you need a system for checking what these people are
doing during their stay (i.e. are they working or not?)
These people don’t make a lot of money as they stay only for a short me
This is not a tax avoidance problem because the person will be taxed in their home country
anyway
Entertainers and sportspersons are taxable (and excluded from secon CW 19) because they make a
large amount of money
o
income of official non-resident entertainers and sportspersons: secon CW 20;
Teams that are officially represenng their country are not taxed
o
income of non-resident crew of vising pleasure craſt: secon CW 21;
o
Defence Force operaonal allowances: secon CW 23;
o
various pensions: secon CW 28;
o
maintenance: secon CW 32;
o
various non-income-tested benefits: secon CW 33;
o
scholarships and bursaries: secon CW 36;
o
income of public authories (government departments, etc): secon CW 38;
o
income of local authories (city councils, etc): secon CW 39;
o
income of charies: secons CW 41, CW 42 and CW 43;
o
income of amateur sports clubs: secon CW 46;
These exempons are subject to various restricons
SUBPART CX – EXCLUDED INCOME
This deals with classes of “excluded income”.
Expenditure incurred in producing excluded income is deducble
(
secon DA 1(1)
(a)(ii)
)
Excluded income includes:
o
GST – you don’t pay tax on the price of your goods/services that comprises the GST (and also minus deducons
on expenses)
o
Fringe benefits
o
Employer’s superannuaon contribuons
o
Kiwisaver tax credits
o
Various kinds of insurance income, mining income, government grants etc.
Exclusion of GST (
secon CX 1
):
o
Excluded income of a registered person includes (1) output tax on goods and services they supply and (2) GST
payable to them by the Commissioner
FRINGE BENEFITS (SECTIONS CX 2 TO CX 38)
Fringe benefits are generally not taxable as income – instead they are chargeable to FBT (mostly under subpart RD).
o
Fringe benefits tax are paid by employers on non-cash benefits supplied by an employer to an employee
o
There are two purposes for FBT – for equity and to prevent avoidance
In the absence of FBT, employers and employees could collude to avoid tax by paying the employee’s
remuneraon by something other than a salary (e.g. stock opons, an interest-free loan for a house,
company cars)
Definion of fringe benefit (
secons CX 2 and CX 4
)
o
A fringe benefit is any benefit that
“is provided by an employer to an employee in connecon with their
employment”, unless “excluded” (
secon CX 2
)
Ace your assessments! Get Better Grades
Browse thousands of Study Materials & Solutions from your Favorite Schools
Vanderbilt University
Vanderbilt_University
School:
Tax_Law
Course:
Great resource for chem class. Had all the past labs and assignments
Leland P.
Santa Clara University
Introducing Study Plan
Using AI Tools to Help you understand and remember your course concepts better and faster than any other resource.
Find the best videos to learn every concept in that course from Youtube and Tiktok without searching.
Save All Relavent Videos & Materials and access anytime and anywhere
Prepare Smart and Guarantee better grades
Know more

Students also viewed documents

lab 18.docx
lab_18.docx
Course
Course
3
Module5QuizSTA2023.d...
Module5QuizSTA2023.docx.docx
Course
Course
10
Week 7 Test Math302....
Week_7_Test_Math302.docx.docx
Course
Course
30
Chapter 1 Assigment ...
Chapter_1_Assigment_Questions.docx.docx
Course
Course
5
Week 4 tests.docx.do...
Week_4_tests.docx.docx
Course
Course
23
Week 6 tests.docx.do...
Week_6_tests.docx.docx
Course
Course
106

Trending Courses



Related Documents