The Resource The Australian non-commercial loss rules : are similar rules warranted in the New Zealand Income Tax Act?

The Australian non-commercial loss rules : are similar rules warranted in the New Zealand Income Tax Act?

Label
The Australian non-commercial loss rules : are similar rules warranted in the New Zealand Income Tax Act?
Title
The Australian non-commercial loss rules : are similar rules warranted in the New Zealand Income Tax Act?
Creator
Subject
Language
  • eng
  • eng
Summary
The issue of whether taxpayers should be allowed to offset losses derived from non-commercial or hobby-like activities has caused policymakers concerns on both equity and revenue cost grounds. In 2000, the Australian Government enacted "non-commercial" loss rules to specifically deal with losses from such ventures. The rules employ a number of bright-line tests to determine whether losses from "non-commercial" businesses can be offset or instead quarantined and carried forward to future income years, as well as grounds for the Australian Commissioner of Taxation to exercise a discretion to allow a loss offset if there is some prospect of future profitability. The author examines the issue of whether similar rules should be introduced in New Zealand. While the Australian non-commercial loss rules are considered in some detail, a number of problems exist with their application. The author states that there are some features of these rules, however, which could be considered for introduction in New Zealand that would better balance the interest of the Revenue and taxpayers in respect of activities which are on the hobby/business boundary. The author also reviews the recently enacted New Zealand mixed-use asset rules
Citation source
In: New Zealand journal of taxation law and policy. - Wellington. - Vol. 21 (2015),
http://library.link/vocab/creatorName
Smith, A.M.C
Language note
English
http://library.link/vocab/subjectName
  • loss relief
  • hobby trading
  • mixed use property
Label
The Australian non-commercial loss rules : are similar rules warranted in the New Zealand Income Tax Act?
Link
https://library.ibfd.org/custom/web/SD_PDF/scans/2015/K-N/NEWZEJOO/2_239-259.zip
Publication
Note
20151214

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