Snapshot of recent developments

Tax Legislation and Policy Announcement

Public Remedials Log: Tax Bill update

Inland Revenue recently updated the Public Remedials Log to include all remedial items in the 2026-27 Tax Bill.

Information release: Orders in Council for Approved Information Sharing Agreement with Ministry of Business, Innovation and Employment

On 28 September 2026, Inland Revenue published an information release and commentary relating to the Orders in Council for the Approved Information Sharing Agreement between Inland Revenue and the Ministry of Business, Innovation and Employment.

Inland Revenue Technical Updates

Draft Question We’ve Been Asked: Can an Active Investor Plus visa holder become tax resident under the permanent place of abode test?

On 1 September 2026, Inland Revenue published a draft Question We’ve Been Asked (QWBA) PUB00548: Can an Active Investor Plus (AIP) visa holder become tax resident under the permanent place of abode (PPoA) test? Inland Revenue concludes that an AIP visa holder can become tax resident under the PPoA test, provided they have a place of abode (dwelling) in New Zealand that they habitually reside in from time to time, on an enduring rather than temporary basis.

The PPoA test requires an overall assessment of the person’s circumstances and the nature and quality of the use the person habitually makes of a place of abode. The person does not need to intend to live somewhere for the rest of their life to satisfy the PPoA test, and a person can still be tax resident in New Zealand even if they also have a PPoA outside New Zealand.

Consultation on the draft closed on 13 October 2026.

Inland Revenue: Fringe Benefit Tax prescribed interest rate increase

On 8 September 2026, Inland Revenue issued a reminder that the prescribed rate used to calculate fringe benefit tax on low-interest, employment-related loans has increased from 5.77% to 6.07% for the quarter beginning 1 October 2026. 

Draft Operational Statement: Mutual associations (including clubs and societies)

On 18 September 2026, Inland Revenue published a draft operational statement ED0265: Mutual associations (including clubs and societies). The statement explains the income tax treatment of amounts received by societies, clubs and other not-for-profit associations from their members, other than amounts subject to a specific tax exemption such as for charities or sports clubs. The statement applies from 1 April 2027 and will be prospective in application when finalised.

Consultation on the draft closes on 11 December 2026.

Inland Revenue: Tax Information Bulletin – September 2026 (Vol 38, No 8)

On 1 September 2026, Inland Revenue issued its September 2026 Tax Information Bulletin. The TIB covers the following recent tax developments:

Determination

• DET 26/06: Tax Administration (Fringe Benefit Tax, Interest on Loans) Determination 2026

Ruling

• BR Pub 26/01-26/03: GST – Directors’ fees and board members’ fees

Interpretation statement

• IS 26/13: Income tax – payments by employers on the death of an employee to executors and family

Revenue alert

• RA 26/02: Non-compliance in the horticultural sector

Question we’ve been asked

• QB 26/05: GST – Directors or board members who provide services through a personal services company

Case summary

• CSUM 26/11: Court of Appeal upholds High Court award of indemnity costs to the Commissioner

Technical decision summaries

• TDS 26/10: GST – amalgamation
• TDS 26/11: Income tax – amalgamation
• TDS 26/12: Property as trading stock

Inland Revenue: Tax Information Bulletin – October 2026 (Vol 38, No 9)

On 1 October 2026, Inland Revenue issued its October 2026 Tax Information Bulletin. The TIB covers the following recent tax developments:

Order in Council commentary

• Approved Information Sharing Agreement between Inland Revenue and MBIE
• DTA (Republic of Croatia) Order 2026
• DTA (Republic of Slovenia) Order 2026

Technical decision summaries

• TDS 26/17: Restructure and use of losses
• TDS 26/16: Complying trust
• TDS 26/15: GST liability on deregistration
• TDS 26/14: Deductibility of forestry expenditure
• TDS 26/13: Derivation of holiday pay remedial payments and calculation of terminal tax

Tax Cases and Technical Decision Summaries

Mainzeal v QBE: Insurance cover and GST liability under D&O policy

On 7 September 2026, the High Court published its judgment in Mainzeal & Ors v QBE, which concerned a dispute over insurance proceeds payable under Mainzeal's directors' and officers' liability policy following damages awarded for directors' breaches of duty. The Court considered whether an additional $1 million payable to a non-executive director was excluded by the policy's personal profit exclusion and whether QBE was required to indemnify Mainzeal for GST payable on receipt of the insurance proceeds. The Court held that the personal profit exclusion did not apply because the directors' breaches were not found to have been undertaken to obtain an unlawful personal benefit. It also found that QBE was not liable to indemnify Mainzeal for GST arising on the insurance proceeds, as Mainzeal received the payment as a third-party claimant rather than as an insured, and QBE was not required to structure the payment to avoid a GST liability.

Technical Decision Summary: Derivation of holiday pay remedial payments and calculation of terminal tax

On 10 September 2026, Inland Revenue published technical decision summary TDS 26/13: Derivation of holiday pay remedial payments and calculation of terminal tax. The summary considers an adjudication involving a taxpayer who received a remedial holiday pay payment from a former employer several years after their employment had ended and challenged the resulting tax assessment. The Tax Counsel Office concluded that the employer had correctly treated the payment as extra pay and deducted PAYE at the applicable rate, that the payment was derived when received and was therefore correctly allocated to the year of receipt, and that the resulting terminal tax calculation was correct. The adjudication also confirmed that the taxpayer bore the burden of proving the assessment was wrong and that, although the taxpayer's Notice of Proposed Adjustment was likely invalid because it failed to adequately identify the relevant law and its application, only the Taxation and Charities Review Authority or High Court could make a final determination on its validity.

Technical Decision Summary: Deductibility of forestry expenditure

On 17 September 2026, Inland Revenue published technical decision summary TDS 26/14: Deductibility of forestry expenditure. The summary considers an adjudication on the deductibility of expenditure incurred before and after a taxpayer's final pine harvest. The Tax Counsel Office concluded that the expenditure was not deductible, finding that the pre-harvest costs of purchasing and planting native trees were incurred to restore and stabilise the land rather than in carrying on a forestry business for the purpose of deriving assessable income. It also found that the post-harvest expenditure on fencing, aggregate and truck hire was incurred after the forestry business had ceased, which occurred on the date of the final tree sale, and therefore lacked the necessary nexus with the taxpayer's income-earning activities.

Technical Decision Summary: GST liability on deregistration

On 17 September 2026, Inland Revenue published technical decision summary TDS 26/15: GST liability on deregistration. The summary considers an adjudication involving a property development partnership that sought retrospective GST deregistration on the basis that it had never carried on a taxable activity. The Tax Counsel Office concluded that the taxpayer should be deregistered from the date of its original registration, as it had not carried on a taxable activity. However, it also found that GST remained payable on the sale of one lot under s 51B(2) because the taxpayer had represented that GST was being charged on the supply, notwithstanding its deregistration. By contrast, no GST liability arose on the sale of a second lot because the taxpayer had represented that the supply was zero-rated.

Technical Decision Summary: Complying trust

On 22 September 2026, Inland Revenue published technical decision summary TDS 26/16: Complying trust. The summary considers a private ruling on whether a trust settled by a New Zealand resident settlor qualified as a complying trust under s HC 10(1). The Tax Counsel Office concluded that the trust was a complying trust for the purposes of any distribution, as its trustee income did not include non-resident passive income, non-residents' foreign-sourced income, or exempt income under s CW 54, and the trustee's tax obligations would be satisfied. The ruling was subject to a condition that all tax obligations relating to the trustee's income tax liability were met for every income year.

Technical Decision Summary: Restructure and use of losses

On 28 September 2026, Inland Revenue published technical decision summary TDS 26/17: Restructure and use of losses. The summary considers a private ruling on a group restructuring involving the transfer of production activity assets between wholly owned subsidiaries and the ability of the recipient company to carry forward and utilise historic tax losses following the restructure. The Tax Counsel Office concluded that the recipient company would be able to carry forward and use its tax loss balance under ss IA 3(4) and IA 4(1), provided it continued to satisfy the continuity requirements in s IA 5 and remained subject to the relevant loss adjustment provisions. The ruling also confirmed that the general anti-avoidance provision in s BG 1 did not apply, as the restructure was undertaken to separate business activities and clarify the roles, functions and financial performance of different parts of the group. The ruling was subject to conditions relating to the share structure and voting rights of the parent company and the recipient company.

Technical Decision Summary: Income tax – proceeds of sale

On 1 October 2026, Inland Revenue published technical decision summary TDS 26/18: Income tax – proceeds of sale. The summary considers a private ruling on whether proceeds from the sale of investment properties owned by an insurance company would be taxable under ss CB 1 or CB 6. The Tax Counsel Office concluded that the sale proceeds were not income, finding that the properties were held on capital account rather than as part of a land trading or insurance business. In reaching this conclusion, it noted that the properties were acquired to support the wider group, leased for long-term use, funded independently of policyholder funds, and held primarily as capital assets. The ruling also confirmed that the company did not have a purpose or intention of disposing of the properties at the time of acquisition, as they were acquired to hold and lease within the group and had been retained for a number of years before the proposed sale.

Inland Revenue Media Releases and Other Updates

Inland Revenue: Changes to taxpayer ruling and determination applications

On 1 September 2026, Inland Revenue issued a reminder that from 14 September, all private, product, and status ruling applications must be submitted through myIR. This also applies to financial arrangement and depreciation determinations.

Inland Revenue: Amendments to the Common Reporting Standard

On 1 September 2026, Inland Revenue announced that it has updated its guidance on the Common Reporting Standard (CRS) to reflect the following changes which took effect from 1 April 2026:

• The CRS now covers certain digital financial products, including specified electronic money products and central bank digital currencies.
• Reporting requirements have been extended to indirect investments in crypto-assets through derivatives and investment vehicles.
• Definitions of investment entity, custodial institution, and depository institution have been expanded.
• Due diligence requirements have been strengthened.
• Additional information about account holders, controlling persons, and financial accounts must now be reported.

This updated guidance is for the CRS period ending 31 March 2027 and onwards.

Inland Revenue: What the Crypto-Asset Reporting Framework means for crypto-asset users

On 1 September 2026, Inland Revenue issued a reminder that from 1 April 2026, New Zealand-based Reporting Crypto-Asset Service Providers (RCASPs) have been required to collect and report certain information about their crypto-asset users and transactions. Inland Revenue has advised that customers of RCASPs who use the provider to carry out exchange transactions or transfers of crypto-assets will need to provide identifying information and confirm their tax residency with the provider. Customers will also need to keep records of their crypto-asset transactions and include taxable crypto-asset income in their income tax return.

Inland Revenue: Account manager service

On 2 September 2026, Inland Revenue announced that it is making changes to its work priorities. Inland Revenue has advised that annual review meetings (meetings between Inland Revenue Account Managers and Tax Agents) that are already scheduled will proceed as planned; however, Inland Revenue may not be scheduling new annual review meetings for some time. Inland Revenue has requested that for exceptional client issues, tax agents should email the centralised site email address and include the client's IRD number and name in the subject line.

Inland Revenue: Upcoming Employment Information changes

On 2 September 2026, Inland Revenue announced that from 12 September 2026, it will be introducing changes to improve the quality of employment information (EI) data and support the move to stronger validation rules in future. These changes include warnings where submitted employee details do not match Inland Revenue’s records, and a new validation service in myIR file upload and gateway services, which will allow users to check EI files before submitting them.

Inland Revenue: Auckland builder sentenced for tax evasion

On 2 September 2026, Inland Revenue published a media release detailing the home detention sentence imposed on an Auckland builder who evaded more than $350,000 in income tax, GST, and PAYE.

Inland Revenue: Tax agents survey results (Apr-Jun 2026)

On 7 September 2026, Inland Revenue published the results of the April -June 2026 Tax Agents Voice of the Customer survey. Key insights are set out by Inland Revenue here.

Inland Revenue: False GST claims result in home detention sentence

On 8 September 2026, Inland Revenue issued a media release detailing the home detention sentence imposed on a Northland woman who tried to claim GST refunds that her company was not entitled to.

Inland Revenue: Home detention for evasion charges

On 10 September 2026, Inland Revenue issued a media release relating to an Auckland woman who was charged with tax evasion but spared imprisonment because of the special needs of her children.

Inland Revenue: Debt collection and contact details

On 11 September 2026, Inland Revenue requested that tax agents encourage clients with overdue tax debt to contact Inland Revenue early to discuss their options, which may include setting up an instalment arrangement using the self-service option in myIR. Inland Revenue also requested that tax agents check that client addresses are current and valid, to ensure that clients receive important correspondence and that Inland Revenue can contact them if the tax agent linking ends.

Inland Revenue: COVID fraud sentencing

On 15 September 2026, Inland Revenue issued a media release detailing the six-month community detention sentence imposed on an Auckland man who made false declarations in his claims for the Small Business Cashflow Scheme loan during COVID-19.

Inland Revenue: Changes to myIR registration, access, and IRD number applications

On 16 September 2026, Inland Revenue announced that it has made changes to myIR registration and account access. As part of the changes, taxpayers will be able to create a myIR account before they have an IRD number. This means they can start interacting with Inland Revenue earlier, including applying for an IRD number, sending messages and uploading documents in myIR.

Inland Revenue: Fees Free will end without transitional arrangements

On 17 September 2026, Inland Revenue issued a reminder that there will be no transitional arrangements when Fees Free ends on 31 December 2026. Students must complete their eligible qualification or programme on or before 31 December 2026 and apply within 12 months of completion to access the scheme.

Inland Revenue: Prison for tax evasion

On 25 September 2026, Inland Revenue issued a media release detailing the prison sentence imposed on a Christchurch man charged with failing to make PAYE payments and tax evasion totalling nearly $1.4 million.

Inland Revenue: Reports to Ministers in 2026

On 28 September 2026, Inland Revenue published a complete list of reports and briefing notes provided to the Minister of Revenue’s office by Inland Revenue, updated to August 2026. To obtain a copy of any of these listed reports, an Official Information Act request must be made to Inland Revenue.

Inland Revenue: Planned service outages ─ November

On 29 September 2026, Inland Revenue announced that it has planned service outages on the weekends of 21-22 and 28-29 November 2026. During the testing, myIR, Gateway Services and the self-service phone line will be unavailable.

Overview Page: Standard costs for home-based services

On 30 September 2026, Inland Revenue published an overview tax technical page for all determinations that set the standard costs for home-based service providers:

• Childcare providers
• Private boarding providers
• Short-stay accommodation providers
• Home share care providers

Amounts calculated in accordance with these standard cost household service determinations are treated as expenditure incurred in providing the relevant services.  For any income year, a taxpayer can choose to use these standard costs instead of their actual expenses, provided the criteria in the determinations are met. 

International Tax Updates

Double Tax Agreements (Republic of Croatia) Order 2026

The Double Tax Agreements (Republic of Croatia) Order 2026 (SL 2026/236) comes into force on 24 September 2026. The Order gives effect to the agreement between New Zealand and the Republic of Croatia for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance and a protocol to that agreement.

Inland Revenue has published an information release and commentary relating to the Order.

Double Tax Agreements (Republic of Slovenia) Order 2026

The Double Tax Agreements (Republic of Slovenia) Order 2026 (SL 2026/237) comes into force on 24 September 2026. The Order gives effect to the agreement between New Zealand and the Republic of Slovenia for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance, and a protocol to that agreement.

Inland Revenue has published an information release and commentary relating to the Order.

New Zealand and India ratify free trade agreement

On 21 September 2026, the Minister of Trade and Investment announced that New Zealand and India have both formally ratified the India-New Zealand Free Trade Agreement. The FTA came into force on 20 October 2026.

Note: The items covered here include only those items not covered in other articles in this issue of Tax Alert.