New Zealand

Details

  • Service: Tax
  • Type: Business and industry issue
  • Date: 12/10/2011

Contact us

John Cantin
Partner - Tax
KPMG
Phone: +64 4 816 4518

jfcantin@kpmg.co.nz

Tax

Our tax advisory team has the skills and commitment to help you to be competitive and compliant in all areas of business tax.

Taxmail - Taxation Review Authority on tax residence 

Issue 1, October 2011

 

The Taxation Review Authority (“TRA”) recently decided the tax residence of an individual who had been employed in Fiji for almost five years. 

Download Now
PDF files require Adobe Reader to view

The TRA decided that the individual was solely resident in New Zealand (under the residence tie-breaker provisions in the NZ – Fiji DTA), notwithstanding the length of time spent living and working in Fiji.

 

This taxmail discusses the decision and the potential wider implications of this ruling.

 

A key finding was that the taxpayer was found to have a permanent home in NZ, through maintenance of a family home, but not in Fiji (the employer providing housing in Fiji was not considered a permanent abode). 

 

The taxpayer was also found to have his centre of vital interests in NZ (through family and employment ties), but perhaps most surprisingly the TRA concluded that living and working in Fiji for almost five years was not habitual as the taxpayer’s working life was otherwise predominantly in New Zealand.

 

While the facts of this case are very specific, the decision is a reminder that taxpayers need to take care that they do not leave themselves in a position where they have no objective evidence to rebut Inland Revenue’s assertions.

 

Taxmail - Comment on topical tax issues from KPMG NZ Tax. 

Sign up now

Subscribe to selected content and receive email alerts when new content is available for viewing on this site.

 

Already a member? Login

 

Not a member? Register