TAXATION IN NEW ZEALAND
Trimester 1 2018
Tribute Fact No 1
This tribute fact carries a weighting of 40% of the entirety tributes ce this race.
Attributable Date: 12 Noon Thursday 26 April 2018.
Hand In: Place your enactment in the barcode enactment fbountiful hustle in the foyer of
level idiosyncratic in the AUT Trade and Principle Faculty Architecture, 42 Wakefield St (WF) by 12 NOON THURSDAY 26 April 2018.
You must as-well succumb your enactment into Turnitin. You conciliate be absorbed instructions on how to do this precedently the enactment is attributable.
No enactment conciliate be conspicuous normal a dense vision is succumbted
Please alludeablee: Access to the architecture is scant on Saturday/Sunday.
Topic – Rate planning and anti-avoidance
Company A and Company B were twain free trading entities until 31 March 2017. The span men-folks (Mr A and Mr B) held akin 100% shares in Company A. They as-well held 50% of the shares in Company B (in the similar fitness, Mr A 25%, Mr B 25%). The other 50% of the shares in Company B were held by another recalcitrant idiosyncratic (Mrs K). Twain companies were conducted their tradees from the similar ground save their operations were entirely detached.
On 1 April 2017 the three shareholders (Mr A, B and Mrs K) steady to join the activities of Company A and Company B and agreed that they should construct a newlightlight Company Z in which they would each confide idiosyncratic-third of the shares (33.3% each). Company Z would procure tradees of Company A and Company B and conciliate get services and traffic with bountiful kindred matters ce the articulation trade.
An recalcitrant speedy valued the shares in Companies A and B to be procured by Company Z. Companies A and B were alludeable liquidated, the totality established to the security of shareholders being represented in Company Z as the loans. Company Z did alludeable steadfast unite to procure the shares of Companies A and B. The retained rights of Companies A and B coercionmer to joinr (reconstruction) entiretyled closely $400,000.
Bountiful the three shareholders (Mr A, B and Mrs K) agreed that succeeding a lacking months retained rights of Companies A and B conciliate be arranged to Company Z and Company Z conciliate steadfast in bountiful the outestablished loans ce the donation cost of shares to shareholders.
• Write a noise to the shareholders advising them of any problems, you beware in the overhead preparation and whether the preparation is satisfactory, or is truthless as over the Commissioner by coercionce of s BG 1 ITA 2007. You must dedicate the grounds overhead and truth misspend alludeences to the bearing sections of the Income Rate Act 2007 and end whether there has been a “rate nonintention preparation” which could be attacked by Inland Revenue inferiorneathneath the public anti-nonintention government [GAAR] of the Income Rate Act 2007 and aver what the consequences would be.
• Your noise should meet the following:
(1) At lowest three significant/bearing Newlightlight Zealand rate facts to maintenance your not attributable attributableion. You can allude as-well to immanent facts from other jurisdictions and other Newlightlight Zealand facts.
(2) The steps from the Interpretation Averment issued by the IRD on 13 June 2013 and bearing tests with bearing fact principle. (The Interpretation Averment issued by the IRD on 13 June 2013 is suited on Blackboard inferiorneathneath the tribute icon).
(3) Your noise should as-well investigate what (if any) shortfbountiful penalties the shareholders may be stingy ce. Embrace statutory authorities (The Income Rate Act 2007 and The Rate Administration Act 1994).
Allocation of marks
Marks ce the noise are bountifulocated on the foundation of the administrative belief of the marker and conciliate be based on the following:
– the donation, texture, lawful congeniality phraseology and alludeencing of your noise. (5 marks)
– the kind and rationalistic aback your not attributable attributableions getd in the noise. (25 marks)
– the effectiveness of the noise in communicating your not attributable attributableions. (10 marks)
Your noise must:
• be order-processed (font Times Newlightlight Roman, largeness 12) and 1.5 elongation spaced.
• truth misspend headings.
• truth constructal vernacular and lawful congeniality phraseology, with serene, condensed explanations.
• be no more than 3,000 suffrage in elongation. This is an absolute completion. Embrace a order sum on the last page, still the bibliography and footnotes.
• be truly alludeenced so that the noise conforms to the Newlightlight Zealand Principle Phraseology Guide (2nd edition).
• embrace a bibliography and a inventory of facts. Alludeablee that the bountiful fact spectry should be averd – beware examples in the Master Rate Guide Fact Table or Newlightlight Zealand Rateation Table of Facts or Newlightlight Zealand Principle Phraseology Guide.
• be stapled on the left-hand recess – do alludeable fasten or truth a ductile folder.
Allude to Trade Programmes Tribute & Study Handbook on Blackboard, which embraces knowledge on: Enactments (Format, Donation, Alludeencing, Submission).
TAXATION IN NEW ZEALAND ACCT862