Interpretation Statement: Whether money or property received by New Zealand tax residents from overseas is income from a foreign trust

On 7 August 2025, Inland Revenue issued 25/18: Income tax – Whether money or property received by New Zealand tax residents from overseas is income from a foreign trust. This interpretation statement considers the income tax treatment of amounts of money or property that NZ tax residents receive from a person overseas, including through inheritance. It addresses how to determine whether the person who transfers the money or property is a trustee of a trust and when the resident taxpayer has derived beneficiary income or a taxable distribution from a foreign trust. It replaces IS 19/04: Income tax – distributions from foreign trusts. Inland Revenue have also published an accompanying fact sheet.

COVID-19 fraud sends former Chartered Accountant to prison

On 7 August 2025, Inland Revenue advised a former Chartered Accountant was jailed for 5 years 11 months after pleading guilty to 29 charges including Wage Subsidy and Small Business Cashflow Scheme fraud, and money laundering. The charges were jointly brought by Inland Revenue and the Ministry of Social Development.

PUB00476: GST – Taxable activity (re-consultation)

On 11 August 2025, Inland Revenue issued a re-consultation on PUB00476: GST – Taxable activity. As a result of the number of submissions received on the first exposure draft and the additions made to the draft Interpretation Statement as a result, particularly the increase in the number of examples, Inland Revenue is seeking further feedback. Submissions close 8 September 2025.

Draft questions we’ve been asked: public private partnership projects and business continuity test for losses

On 11 August 2025, Inland Revenue issued PUB00521: Income tax – Public private partnership projects and business continuity test for losses. It concludes that a change from the Design & Construction Phase to the Operating & Maintenance Phase could be a “major change” in the nature of a contractor’s business activities for the purpose of the business continuity test. However, any “major change” will be a “permitted major change” because the services provided in each of the two phases are closely connected due to the economic, legal and financial dependencies of the two phases. Therefore, despite a breach in ownership continuity and the phase change, a corporate contractor or the corporate limited partner of an Limited Partnership Contractor can carry forward its tax losses if it meets the other requirements of the Business Continuity Test and the avoidance provisions in sections GB 3BA to GB 3BAC do not apply. The deadline for submissions is 19 September 2025.

Inland Revenue: Clients with invalid addresses

On 11 August 2025, Inland Revenue requested that tax agents ensure clients’ addresses are up to date and are valid in its system. If a client's address is not validated, they will not receive any mail or letters in myIR.

Inland Revenue: Correspondence guidelines

On 11 August 2025, Inland Revenue provided a reminder about its correspondence guidelines (IR1025). The correspondence guidelines include the common types of requests Inland Revenue receive and outline the key information Inland Revenue need when web messages are sent.

Inland Revenue: Voluntary disclosures

On 11 August 2025, Inland Revenue advised that making a full and complete Voluntary Disclosures allows Inland Revenue to resolve matters efficiently, reducing the need for follow-up queries. Mistakes and omissions result in more correspondence and delays. Inland Revenue have asked that when making a Voluntary Disclosures, please include a full explanation of what went wrong, how and why it happened, who was responsible, and what changes have been made to prevent this issue happening again.

Inland Revenue: Expanding Inland Revenue’s Decision Support Collections Tool

On 12 August 2025, Inland Revenue announced it has expanded the scope of the Decision Support Collections Tool (an analytical tool for collections activity). Inland Revenue can now offer instalment arrangements to clients of tax agents when the debt is less than 6 months old and under $10,000.

Inland Revenue: Tax agent clients with overdue debt

On 13 August, Inland Revenue announced that if tax agent’s clients have been contacted through their normal billing cycle about overdue debt (particularly GST and Employment tax) and they have not responded, the client will be part of Inland Revenue’s debt focus. Inland Revenue may begin further actions such as bank or wage deductions.

Inland Revenue: General Article - Tax on any fees paid to a member of a board, committee, panel, review group or task force

On 18 August 2025, Inland Revenue issued GA 25/01: Tax on any fees paid to a member of a board, committee, panel, review group or task force. This item updates GA 21/01. The purpose of this General Article is to assist board members with their withholding tax and GST obligations. How taxation applies to any fees paid to members depends on the personal circumstances of the individual member and the terms of their contract/appointment and any duties they may have to a third party (i.e. as a partner or as an employee).

Inland Revenue: Woman sentenced on tax fraud charges

On 18 August 2025, Inland Revenue published the details about an Auckland woman who was sentenced to two years imprisonment on tax fraud charges. She faced 18 charges, including filing 64 false income tax returns and manipulating bank account details for 19 taxpayers to divert refunds to accounts she controlled. She also submitted fraudulent applications to COVID-19 support schemes, successfully obtaining nearly $37,000 out of a total $222,822 she attempted to defraud from Inland Revenue.