Tax Alert - February 2014
Tax Alert is a monthly publication that keeps you up to date with the latest developments in tax. The alert is compiled by our national tax specialists who are continually monitoring the outlook for new tax developments and analysing the implications for our clients.
Employee share plans coming under Inland Revenue’s tax avoidance spotlight
As highlighted in our November 2013 Tax Alert we have noticed an increase in Inland Revenue investigators asking employers detailed questions about employee share plans, including details of who have participated and what rewards have been received.
Alarmingly we have recently been made aware that these enquiries are not merely to check whether an employee has returned share based income, but to suggest that participating employees may be committing tax avoidance – an employee and employer’s worst nightmare.
Despite employee share plans being commonplace and a number of plans receiving the blessing of Inland Revenue through product and private rulings over the years, Inland Revenue have come out all guns blazing against at least one taxpayer, stating that “the world has changed” and what was once acceptable is no longer acceptable under the latest interpretation of tax avoidance laws .
Also in this issue:
- Do you have Foreign Superannuation Entitlements?
- Residence storm brewing
- The acquisition date of land – clarity still required
- Transfer pricing is still a hot topic
- Deloitte Tax Calendar – order your copy now