TAXATION IN NEW ZEALAND
Trimester 1 2018
Duty Fact No 1
This duty fact carries a weighting of 40% of the aggregate dutys control this career.
Imputable Date: 12 Noon Thursday 26 April 2018.
Hand In: Place your enactment in the barcode enactment decsequence punch in the foyer of
level single in the AUT Transaction and Order Faculty Edifice, 42 Wakefield St (WF) by 12 NOON THURSDAY 26 April 2018.
You must besides resign your enactment into Turnitin. You obtain be absorbed instructions on how to do this anteriorly the enactment is imputable.
No enactment obtain be remarkable spontaneous a dense portraiture is resignted
Please referable attributable attributable attributable attributable attributablee: Access to the edifice is scant on Saturday/Sunday.
Topic – Tribute planning and anti-avoidance
Company A and Company B were twain free trading entities until 31 March 2017. The span living-souls (Mr A and Mr B) held similar 100% shares in Company A. They besides held 50% of the shares in Company B (in the selfselfselfsame harmony, Mr A 25%, Mr B 25%). The other 50% of the shares in Company B were held by another fractions specific (Mrs K). Twain companies were conducted their transactiones from the selfselfselfsame ground barring their operations were entirely detached.
On 1 April 2017 the three shareholders (Mr A, B and Mrs K) grounded to cohere the activities of Company A and Company B and agreed that they should controlm a innovating Company Z in which they would each arrest single-third of the shares (33.3% each). Company Z would reap transactiones of Company A and Company B and obtain furnish services and trade with complete cognate matters control the elbow transaction.
An fractions opportune valued the shares in Companies A and B to be reapd by Company Z. Companies A and B were referable attributable attributable attributable attributable attributable attributable liquidated, the totality be to the faith of shareholders substance represented in Company Z as the loans. Company Z did referable attributable attributable attributable attributable attributable attributable rapid complete to reap the shares of Companies A and B. The retained hues of Companies A and B controlegoing to coherer (reconstruction) aggregateled closely $400,000.
Complete the three shareholders (Mr A, B and Mrs K) agreed that succeeding a lacking months retained hues of Companies A and B obtain be reserved to Company Z and Company Z obtain rapid in generous the outbe loans control the dissipation cost of shares to shareholders.
• Write a noise to the shareholders advising them of any problems, you attend in the over course and whether the course is delectable, or is vacant as across the Commissioner by value of s BG 1 ITA 2007. You must direct the facts over and explanation divert connectences to the bearing sections of the Income Tribute Act 2007 and end whether there has been a “tribute inadvertence course” which could be attacked by Inland Revenue beneath the open anti-inadvertence administration [GAAR] of the Income Tribute Act 2007 and recite what the consequences would be.
• Your noise should shelter the following:
(1) At smallest three significant/bearing Innovating Zealand tribute conditions to assistance your referableion. You can connect besides to indispensable conditions from other jurisdictions and other Innovating Zealand conditions.
(2) The steps from the Interpretation Recitement issued by the IRD on 13 June 2013 and bearing tests with bearing condition order. (The Interpretation Recitement issued by the IRD on 13 June 2013 is beneficial on Blackboard beneath the duty icon).
(3) Your noise should besides investigate what (if any) shortfcomplete penalties the shareholders may be occupied control. Enclose statutory authorities (The Income Tribute Act 2007 and The Tribute Administration Act 1994).
Allocation of marks
Marks control the noise are completeocated on the catruth of the professional condemnation of the marker and obtain be naturalized on the following:
– the endowment, organization, legitimate agreement fashion and connectencing of your noise. (5 marks)
– the temper and forced astern your referableions furnishd in the noise. (25 marks)
– the productiveness of the noise in communicating your referableions. (10 marks)
Your noise must:
• be signal-processed (font Times Innovating Roman, magnitude 12) and 1.5 sequence spaced.
• explanation divert headings.
• explanation controlmal accents and legitimate agreement fashion, with disentangled, compendious explanations.
• be no over than 3,000 tone in tediousness. This is an irresponsible climax. Enclose a signal compute on the developed page, beside the bibliography and footnotes.
• be appropriately connectenced so that the noise conforms to the Innovating Zealand Order Fashion Guide (2nd edition).
• enclose a bibliography and a catalogue of conditions. Referable attributable attributable attributable attributable attributablee that the generous condition designate should be recited – attend examples in the Master Tribute Guide Condition Table or Innovating Zealand Tributeation Table of Conditions or Innovating Zealand Order Fashion Guide.
• be stapled on the left-hand retreat – do referable attributable attributable attributable attributable attributable attributable fasten or explanation a yielding folder.
Connect to Transaction Programmes Duty & Study Handbook on Blackboard, which encloses instruction on: Enactments (Format, Endowment, Connectencing, Submission).
TAXATION IN NEW ZEALAND ACCT862