New Zealand – Inland Revenue’s timeline for BEPS consultations

December 1:  The Inland Revenue last week released its annual compliance guide for taxpayers and reports on progress with respect to the OECD’s base erosion and profit shifting (BEPS) work and time frames, for New Zealand consultation on possible domestic law changes to address BEPS concerns.

The 2014/15 compliance guide emphasises the need for taxpayers “to get the basics right” and is viewed as providing a general guide of the focus that business can expect from Inland Revenue.

The BEPS releases provide some insights into the domestic issues that concern New Zealand tax officials, including the use of Australian limited partnerships, which can give rise to double deductions; concerns around use of high-price related-party debt; and “deficiencies” in the non-resident withholding tax (NRWT) rules and foreign trusts.

Consultations on these and various administrative changes are expected in mid to late 2015.