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Welcome to May Tax Watch
We lead this month with a proposal by IRD to widen the tax net by treating salary trade-offs as income, focussing on car parks and childcare facilities. The current FBT exemption may be removed. EY is submitting on the issue and we encourage employers to do likewise.
Occasionally the taxman giveth. In our next article, we highlight relaxation of NRWT rules to lower the tax cost of paying dividends to offshore parents, a trend we expect to see more of as the Government targets more foreign investment. Talk to us about how you can access this benefit.
We have been also talking to clients recently about the step up in Customs activity. We take this opportunity to remind you of the new penalty regime for import errors, and our view of those areas Customs will target in its approach to importers.
Are you paying the right amount of tax on salaries? More than ever, it’s imperative that taxpayers, in all industries carefully consider their salary decisions and their business profits, to minimise risk of IRD scrutiny. With new industry benchmarks, it’s important you are able to justify your position. We examine the IRD’s direction post Penny & Hooper.
As Transfer Pricing climbs the tax agenda, we will continue to inform our readers on topical issues. John Nash at IRD recently gave a candid interview to EY Transfer Pricing Leader Mark Loveday, covering some of the more thorny issues. We also bring you our submission on Australia’s Transfer Pricing legislation. There is plenty here to interest readers.
Finally, we bring you highlights of the Australian Federal Budget. The Treasurer kept his long-standing promise and delivered a forecasted budget surplus against all odds, but it is hard to argue this is the surplus they had to have, we say.
Tax Watch in Brief this month covers several recent developments in legislative policy.
If you require any additional information on any of the featured articles in this newsletter, please contact your usual EY adviser.
EY tax team
To find out more about the services we offer in these areas please contact us.
To find out more about the services we offer in this area please contact:
Partner, Human Capital
+64 9 300 7058
+64 4 495 7399
Partner, Tax Policy
+64 9 300 8059
+64 9 300 8128
+64 9 300 8015
Partner, Transfer Pricing
+64 9 300 7085