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New Tax Treatment for Cash Collateral in Security Lending & Derivative Transactions
Effective from 1 April 2025, Commissioner of Inland Revenue has changed its stance on cash collateral. Previously, cash collateral used in security lending and derivative transactions was not considered a loan, meaning interest payments on it were not subject to Resident Withholding Tax (RWT) or Non-Resident Withholding Tax (NRWT). However, the Commissioner now views cash…
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Understanding IFRS 2: Share-Based Payments
Share-based payments, such as stock options and performance-based shares, have become a key part of employee compensation and business transactions. But how should companies account for them? IFRS 2: Share-Based Payment, the accounting standard that ensures transparency in financial reporting! What is IFRS 2? IFRS 2 governs how businesses recognize and report share-based payments in their…
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GST Input Tax Deductions & Taxable Activity: TDS 25/05 Summary
IRD has recently issued a Technical Decision Summary TDS 25/05 In this case, a GST-registered company (the “Taxpayer”) owned land leased to a shareholder. After selling the land, the company ceased making taxable supplies but remained GST-registered. Legal fees were incurred in defending shareholder disputes over alleged financial irregularities. Several years later, the company claimed…
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Employee Share Scheme (ESS) Taxation in New Zealand
The New Zealand tax system includes specific rules for Employee Share Schemes (ESS), ensuring that employee benefits received through shares are taxed equitably alongside cash remuneration. IRD’s recently interpretation statement IS 25/04 explains: Definition of an ESS: An arrangement where shares are issued or transferred to employees in connection with their employment. Taxing Date (SSTD):…
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