10 Common International Tax Mistakes
In this course Sybrand van Schalkwyk interviews Dr Peter Loerscher about 10 international tax mistakes advised on in their practices. This is a Q&A style session with diagrams to allow you to learn more about advising on NZ’s international tax landscape. The training is specifically aimed at accountants, but is also useful for lawyers or lay people interested in understanding more about NZ’s international tax rules for individuals, trusts, transitional residents and so on. The 10 questions are below.
Format
Q&A style
Starting date
Now
Author
Dr Peter Loerscher interviewed by Sybrand van Schalkwyk
Video
Around 1 hour and 45 mins
Price
$50
About the course
Peter and I break down some of the common mistakes advisors make when advising on NZ international tax issues. We cover ten questions in a relaxed Q&A session. If there is demand for more of this content Peter has said he is willing to do an “episode II”. We cover the following questions at the following times:
1. Why would we rather speak with clients before they migrate or relocate to New Zealand. Advising on the basics when someone moves to NZ with interests in an overseas company - why are people talking about pre migration trusts?
Starts at 03 mins 13 sec
2. Claiming tax credits on dividends from UK companies and not claiming tax credits on CGT on sale of property when that same property is taxable in NZ under the bright-line.
Starts at 31mins 23 sec
3. Forgetting that transitional residence ends if someone becomes non-resident during their 4 years. How is a Double Tax Agreement applied? How does that impact my foreign trading company and what does the migrant needs to contemplate before arriving.
4. Thinking that the transitional residence exemption and the foreign pension exemption have the same conditions. The unclarity between both rules (end of HR8 and continuous period for pension transfers).
Both Q 3&4 start at 40 mins 24 sec
5. Forgetting to treat interests in foreign life insurance as an interest in a FIF and taxed accordingly and why they are coming currently to IRD scrutiny. What is Common Reporting ?
Starts at 46 mins 26 sec
6. Not advising clients correctly on their trusts when they move to NZ - a windfall or a burden?
Starts at 57 mins 18 sec
7. Making a loan to an Australian resident beneficiary of a NZ trust thinking that Australia would not tax the loan. Transfer Pricing in general
Starts at 1 hour 16 mins and 44 sec
8. Forgetting to tell Kiwis that they are exempt from most foreign sourced income if certain conditions are met, and they migrate to Australia. What about AUS moving to New Zealand for the first time?
Starts at 1 hour 21mins and 50 sec
9. Forgetting to get Kiwis who migrate to Australia to get themselves removed as trustees and power of appointment of their NZ Trust. Issue here is the trust becoming Aussie tax resident and being taxed on CGT on NZ assets. When is it advisable to have a trust to migrate to AUS?
Starts at 1 hour 30mins and 17 sec
10. Blindly taking wealth management reports as gospel on calculating income from the FIF rules. For example, clients have had FIFs for many years, then changes wealth managers. Wealth managers treat the portfolio as acquired that year, thus resulting in $0 tax under FDR. Debt and equity issues…
Starts at 1 hour 37 mins and 23 sec
1. Why would we rather speak with clients before they migrate or relocate to New Zealand. Advising on the basics when someone moves to NZ with interests in an overseas company - why are people talking about pre migration trusts?
Starts at 03 mins 13 sec
2. Claiming tax credits on dividends from UK companies and not claiming tax credits on CGT on sale of property when that same property is taxable in NZ under the bright-line.
Starts at 31mins 23 sec
3. Forgetting that transitional residence ends if someone becomes non-resident during their 4 years. How is a Double Tax Agreement applied? How does that impact my foreign trading company and what does the migrant needs to contemplate before arriving.
4. Thinking that the transitional residence exemption and the foreign pension exemption have the same conditions. The unclarity between both rules (end of HR8 and continuous period for pension transfers).
Both Q 3&4 start at 40 mins 24 sec
5. Forgetting to treat interests in foreign life insurance as an interest in a FIF and taxed accordingly and why they are coming currently to IRD scrutiny. What is Common Reporting ?
Starts at 46 mins 26 sec
6. Not advising clients correctly on their trusts when they move to NZ - a windfall or a burden?
Starts at 57 mins 18 sec
7. Making a loan to an Australian resident beneficiary of a NZ trust thinking that Australia would not tax the loan. Transfer Pricing in general
Starts at 1 hour 16 mins and 44 sec
8. Forgetting to tell Kiwis that they are exempt from most foreign sourced income if certain conditions are met, and they migrate to Australia. What about AUS moving to New Zealand for the first time?
Starts at 1 hour 21mins and 50 sec
9. Forgetting to get Kiwis who migrate to Australia to get themselves removed as trustees and power of appointment of their NZ Trust. Issue here is the trust becoming Aussie tax resident and being taxed on CGT on NZ assets. When is it advisable to have a trust to migrate to AUS?
Starts at 1 hour 30mins and 17 sec
10. Blindly taking wealth management reports as gospel on calculating income from the FIF rules. For example, clients have had FIFs for many years, then changes wealth managers. Wealth managers treat the portfolio as acquired that year, thus resulting in $0 tax under FDR. Debt and equity issues…
Starts at 1 hour 37 mins and 23 sec
Course Lessons
Sybrand van Schalkwyk and Dr Peter Loerscher
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