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Archives for Tax

digital economy

Digital economy

Taxing the digital economy fairly

David Gibbs, corporate tax partner at London accounting firm Alliotts (and chair of Alliott Group’s International Tax Services Group) explains in this short report that the OECD and the European Commission (EC) have both issued publications with their respective latest analysis and proposals to tackle the issue of taxing profits and income earned from within the digital economy.

So where are we now in terms of concrete proposals? Read David’s views below.

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online shopping

US Supreme Court’s Wayfair Decision

Wayfair: Could the US Supreme Court decision open Pandora’s Box across the globe?

In the case of South Dakota vs. Wayfair, the United States Supreme Court may have opened a Pandora’s Box of tax compliance problems around the world as states seek to collect taxes they believe are due to them.

Alliott Group colleague Daryl R. Petrick of Californian accounting firm Bowman & Company, LLP, explains the decision and the potential reverberations for domestic and international retailers.

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Personal Tax

Cristiano Ronaldo and foreign high net worth individuals

Cristiano Ronaldo’s arrival at Juve highlights Italy’s attractive new tax regime for foreign high net worth individuals.

Cristiano Ronaldo’s summer switch to Juventus has sparked debate about not only sporting performance and statistics, but also the fiscal implications of his transfer to the club. In particular, Cristiano’s move has drawn attention to the optional tax regime for new residents in Italy. Find out more below in this article from partners Giorgio Marcolongo and Paolo Bifulco, a version of which also appeared in a recent copy of Rolling Stone magazine.

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NZ CRS & FATCA disclosures

Although due date for CRS & FATCA disclosures has passed, NZ IRD still accepts late submissions

Financial institutions needed to report information about foreign tax resident financial accounts to us for the year ending 31 March 2018 by 30 June.

This is an annual obligation to comply with the Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act (FATCA) legislation. IRD is due to exchange information internationally by 30 September 2018.

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Budget 2016 transforming NZ’s tax system

Global tax evasion

Combatting global tax evasion

The New Zealand government has joined more than 100 other countries in a global initiative to combat tax evasion. It’s called the Automatic Exchange of Information – or AEOI.

This international collaboration will make it even harder for people who are trying to evade paying tax by hiding money or investments overseas.

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new zealand

NZ Budget 2018

Finance Minister Grant Robertson delivered Budget 2018 to the nation

It’s the first Budget for the Labour-NZ First Government and forms a key part of the narrative around where and how our new Government wishes to recalibrate the longer term destination for the country.

Tax – Reconfiguring the incentives for R&D

In the lead up to Budget 2018, the Government released its proposals to lift research and development (R&D) spending from the current 1.3% of gross domestic product (GDP) to a target of 2% of GDP. The solution put forward is to reintroduce an R&D tax credit regime with effect from 1 April 2019.

The bones of the proposed regime are similar to what we had under the previous Labour government, prior to the regime being repealed and replaced with the Growth Grant scheme administered by Callaghan Innovation. It comes at an estimated cost of $1.0 billion of operating expenditure over four years.

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Australia's House of Representatives, Canberra

Australian Budget 2018

Wealthy, healthy and prizes

That fiscal prudence has come at the ‘cost’ of fewer giveaways than might have been the case ahead of an election.

We expect the government to gain favourable comment for banking some of the revenue gains with enough left over for a variety of measures, including personal income tax cuts.

“By far the biggest improvement [in Australia’s cash balance] was due to stronger-than-expected tax revenue.” 

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Reminder: New Australian GST rules from 1 July

Tax on retail sales of goods and services into Australia

Australian goods and services tax (GST) may apply to you for retail sales of low-value goods, services or digital products to Australia.

Retailers, online marketplaces and goods re-deliverers may need to register and pay GST to the Australian Taxation Office. GST is a consumption tax similar to sales tax or value-added tax.

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bitcoin cryptocurrency

Cryptocurrency tax implications

Investors in cryptocurrency need to be aware of tax implications

With all the excitement around cryptocurrency, it can be easy to forget about the taxation that comes along with it.

Cryptocurrency (sometimes known as a virtual, digital, or electronic currency) is a digital asset which is traded and secured using cryptography. Bitcoin, the most widely recognized type of cryptocurrency, has an equivalent value in traditional currency, and is digitally traded peer to peer using a decentralized system referred to as Blockchain.

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international tax transparency

ATO encouraging international tax transparency

Australian Tax Office (ATO) transparency regimes and initiatives part of commitment to combat international tax avoidance.

They involve comprehensive exchanges of taxpayer information and the number of jurisdictions they now exchange information with is growing.

The ATO works with the Organisation for Economic Co-operation and Development (OECD), Joint International Tax Shelter Information Centre (JITSIC) and overseas jurisdictions to improve global tax transparency. These regimes and initiatives contribute to ensuring individual and corporate taxpayers pay the right amount of tax in Australia.

The measures supporting international tax transparency include:

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Rough Seas Ahead for Multinationals

Rough Seas Ahead for Multinationals?

Short Report: The New Country by Country Reporting (CbCR) & Transfer Pricing Documentation Rules

This report stems from Alliott Group’s International Tax Services Group meeting in Sydney, Australia where international tax advisors from across the world engaged in a roundtable discussion on Action 13 of the Base Erosion and Profit Shifting (BEPS) Action Plan.

The report provides basic guidance on the CbCR and transfer pricing documentation recommendations, an update on the status quo in different countries and opinions from local tax practitioners.

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Vacancy Fee Introduced in Australia

International Tax Alert

Vacancy Fee Introduced in Australia for Foreign Investors in Residential Property

New rules in Australia have imposed an annual vacancy fee on foreign owners of residential real estate in situations where a property is not occupied or not genuinely available for rent for at least six months in a 12 month period.

Australia’s Federal Government recently passed the law to increase the amount of housing stock available for occupation.

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UK Budget 2017 Summary

UK Chancellor Philip Hammond announced the Autumn Budget on 23 November 2017

6 Key points

London member firm Alliotts referred to the Chancellor’s second budget of the year as ‘A Budget for Building the New Economy’ and drew attention to the Government’s commitment to further investment in technology, incentives for knowledge-based companies and funding for the development of construction skills to plug the skills shortage.

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AUS GST changes to foreign importers and Australian consumers July 2018

Changes will expand Australia’s GST base

Australia’s Goods and Services Tax (GST)* rules on the import of goods into Australia will change 1 July 2018 as Australia continues to modernise its tax rules to make them more applicable to new business models being used in the digital economy.

Australia’s GST rate is 10% and a business is required to register for GST if its actual or anticipated sales over the next 12 months exceed $AUD 75,000.

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Australian Government’s changes to foreign resident withholding tax regime

On 9 May 2017, Australia’s Federal Government announced substantial changes to the rate and threshold of its Foreign Resident Capital Gains Withholding (FRCGW) regime which has been in force since 1 July 2016.

Alliott Group member firm BRH Lawyers in Brisbane explain the changes and what foreign residents purchasing property in Australia need to be alive to.

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Evolution of tax residency definition by ATO needs to be observed by international companies

International companies with an interest in doing business in Australia will be interested to learn that the Australian Taxation Office (ATO) has recently issued a draft taxation ruling TR 2017/D2 Foreign Incorporated Companies: Central Management and Control test of residency. Simultaneously, the ATO has withdrawn its earlier tax ruling TR 2004/15 which covered similar issues.

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2017 UK Spring Budget highlights

A clear signal that Britain is open for business

“My ambition is for the UK to be the best place in the world to start and grow a business. In 2010, Corporation Tax was 28%. From April this year, it will fall to 19%, the lowest rate in the G20. In 2020, it will fall again to 17%, sending the clearest possible signal that Britain is open for business.” – Philip Hammond, UK Chancellor of the Exchequer.

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