EY Tax Monthly News Update – Edition 4, 2026

EY Tax News Update: Edition 4, 2026

Welcome to the latest edition of EY’s tax news. This edition covers key tax developments for April 2026. You can also find details of upcoming EY Global webcasts, along with links to EY insights.

In brief

Inland Revenue updates

• Don’t miss your chance to have your say on current draft consultation items:
  • Proposed legislative changes for intermediaries
  • GST on directors’ fees and board members’ fees
  • Proposed Information Sharing Agreements
  • GST reduced value rule 

• Stay on top of new finalised guidance:
  • Interpretation Statement: Income tax implications of providing sponsorship
  • Question We’ve Been Asked: GST - registered members of unregistered unincorporated bodies
  • Technical Decision Summary: sale and subdivision of land
  • Other: Determination; Case Summaries; Product Ruling 
• Updated transfer pricing documentation requirements
• How the tax system may need to adapt in the face of long-term fiscal pressures
• Other updates

Government and other updates

• New Zealand-India Free Trade Agreement
• Economic update
• Coming up next month: Budget 2026
• Other updates

International updates

• Australia
• United States
  

EY Global webcasts

• Financial and tax guidance in the age of AI: what works, what’s risky and what’s next

EY insights

• Tax Guides - various tax matters covering over 150 jurisdictions
• OECD releases 'Secretary-General Tax Report' ahead of G20 Finance Ministers and Central Bank Governors' first 2026 meeting
• UN Tax Committee's 32nd Session sets technical work program for 2025-2029 - key highlights
• What if building trust helped global mobility thrive at the speed of change?
• As AI moves from advice to authority, who defines its limits?
• The Latest on BEPS and Beyond | April 2026
• PE Watch | Latest developments and trends, April 2026

Current draft consultation items 

New finalised guidance

Inland Revenue guidance items finalised since our last update include:

Updated transfer pricing documentation requirements

Inland Revenue recently updated its Transfer Pricing Documentation Guidance (Guidance). The Guidance has been strengthened to clearly state that taxpayers are expected to maintain sufficient transfer pricing documentation. It outlines Inland Revenue's expectations of "adequate" documentation, as well as the potential consequences where documentation is inadequate.

Inland Revenue makes it clear that it is not sufficient merely to have New Zealand transfer pricing documentation in place. Rather, taxpayers are expected to maintain documentation that is appropriately tailored to the specific facts and circumstances of the New Zealand entity. Inland Revenue reiterates that:

• Centrally prepared transfer pricing documentation must be appropriately localised to reflect New Zealand-specific facts and circumstances
• Local New Zealand management are expected to be actively involved in preparation and review of New Zealand transfer pricing documentation

Inadequate transfer pricing documentation will increase the likelihood of audit activity and, if transfer pricing adjustments are made, shortfall penalties of up to 40% “will most likely” be imposed.

The Guidance also states Inland Revenue's expectations of what constitutes "good" transfer pricing documentation and highlights common errors observed in practice, many of which Inland Revenue attributes to overreliance on centrally prepared documentation.

Inland Revenue's stronger stance has already been underscored by increased enforcement activity, with greater incidences of shortfall penalties on transfer pricing adjustments. Multinationals with New Zealand operations should ensure contemporaneous transfer pricing documentation is maintained to an acceptable standard with adequate local customisation and review.

For more information, refer to the EY Global Tax News Alert here. Please reach out to your usual EY tax advisor if you have any questions. 

How the tax system may need to adapt in the face of long-term fiscal pressures 

Inland Revenue, like other government departments, is currently required to prepare a Long-term Insights Briefing (LTIB) once every three years. LTIBs examine long-term trends, risks and opportunities, along with possible policy responses. As they are developed independently of ministers, LTIBs do not reflect current government policy or recommend immediate actions. Instead, the aim is to promote public discussion on key policy issues.

Inland Revenue has now finalised its 2026 LTIB, Stable bases and flexible rates: New Zealand’s tax system. The finalised LTIB explores how New Zealand’s tax system may need to evolve to remain sustainable over the long-term, particularly in light of demographic pressures such as an ageing population. It focuses on the resilience of the tax system over coming decades and analyses structural features that could support long‑term revenue sustainability, including the balance between stable tax bases and the ability to adjust tax rates over time.  

While not reflective of current government policy, the LTIB provides useful insight into officials’ thinking on tax system settings and the possible direction of future policy advice. The LTIB is available on Inland Revenue’s Tax Policy website here.

Other updates

• Inland Revenue has made changes to how they share information about unpaid tax to a credit agency, including changes which ease the requirement for Inland Revenue to make reasonable efforts to collect the debt, and changes to how notification to the business can be made. Inland Revenue is also seeking to extend this information sharing to other approved credit reporting agencies. See Inland Revenue’s website here for details.
• As part of an ongoing focus on cryptoasset compliance, Inland Revenue is urging crypto-asset investors to review and comply with their tax obligations, noting increased data access, implementation of the Crypto-Asset Reporting Framework, and active follow-up where crypto income has not been declared. Refer to the Inland Revenue media release here and Inland Revenue website here for more information.
• Inland Revenue has published an information release containing a report which briefs Ministers on its preliminary assessment of the direct effects of compliance activities. The report is a condition of Budget 2025 funding and provides insight into the extent and nature of tax gaps. Overall, the report finds that compliance activities continue to generate returns of comparable size to those observed in recent years, suggesting that substantial tax gaps persist. The report is available on Inland Revenue’s Tax Policy website here. 

New Zealand-India Free Trade Agreement

New Zealand and India have signed a Free Trade Agreement. Further domestic and international processes must now be completed before the agreement enters into force. See the Beehive release here for more information.

Economic update

From the Treasury

Treasury has published the Interim Financial Statements of the Government for the eight months ended 28 February 2026. Key figures include:

• Tax revenue of $80.1 billion, which was 0.4% below forecast
• Operating balance before gains and losses (excluding ACC) deficit of $7.2 billion, which was $2.1 billion less than the forecast deficit 

Refer to the Treasury media release here for more information.

From Stats NZ

Stats NZ figures show the consumer price index increased 3.1% in the 12 months to the March 2026 quarter. Refer to the Stats NZ website here.

Coming up next month: Budget 2026

Budget 2026 will be delivered by the Government on 28 May. This year’s Budget is expected to focus on funding core public services while exercising tight control over discretionary spending. At the same time, businesses continue to face geopolitical complexity, slower global growth, and ongoing uncertainty across key markets.

Keep an eye out for coverage of any tax-related developments from the 2026 Budget in our next EY Tax News Update.

Other updates

Other updates include:

• Reminder that a new levy regime in relation to the customs goods management system came into effect on 1 April, including border fee changes for low-value imported goods. Further information is available in the Beehive release here.
• The Online Casino Gambling Act received Royal assent on 28 April and establishes a licensing regime for online casino gambling. Internal Affairs Minister Brooke van Velden stated that the Act “…also supports the coalition agreement by closing the gambling tax loophole and requiring licensed online casino operators to pay tax, just like any other business operating in New Zealand,” – see the Beehive release here. 

Australia

The Australian Treasury is consulting on draft legislation which proposes significant changes to Australia's foreign resident capital gains tax (CGT) regime to:

• Clarify and broaden the definition of taxable Australian real property (TARP)
• Modify the principal asset test for indirect interests
• Introduce enhanced notification and withholding integrity measures

Also proposed is a new time-limited targeted 50% CGT discount for gains from eligible Australian renewable energy projects, until 30 June 2030.

An expanded definition of TARP, which includes a new statutory definition of real property, is proposed to apply retrospectively to CGT events occurring from 12 December 2006.

Entities with foreign investments in Australian real estate, infrastructure or renewable energy should review their holdings and transactions, prepare for increased compliance requirements and consider the impact of potentially retrospective changes on past disposals. For further information, refer to the EY Global Tax News Alert here.

United States

The following EY Global Tax News Alerts are available:

• US Customs and Border Protection updates court on process to refund IEEPA duties; Phase 1 scope refined and progress milestones reported
• US Section 232 proclamation imposes up to 100% tariffs on patented pharmaceuticals and active pharmaceutical ingredients
• US presidential proclamation modifies Section 232 tariffs on steel, aluminum, copper and their derivative products

• Financial and tax guidance in the age of AI: what works, what’s risky and what’s next – watch on demand here

• Tax Guides - browse our in-depth guides covering corporate tax, indirect tax, personal taxes, transfer pricing and other tax matters in more than 150 jurisdictions
• OECD releases 'Secretary-General Tax Report' ahead of G20 Finance Ministers and Central Bank Governors' first 2026 meeting
• UN Tax Committee's 32nd Session sets technical work program for 2025-2029 - key highlights
• What if building trust helped global mobility thrive at the speed of change?
• As AI moves from advice to authority, who defines its limits?
• The Latest on BEPS and Beyond | April 2026 
• PE Watch | Latest developments and trends, April 2026

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