New Zealand Tax Agency Issues Interpretation Statements, Fact Sheets Clarifying Work Travel Expense Deduction Rules

The New Zealand Inland Revenue Jan. 15 issued Interpretation Statement Nos. IS 25/01 and IS 25/02, and accompanying Fact Sheets IS 25/01 FS and IS 25/02 FS, clarifying the work travel expense deduction rules. Topics covered include: 1) the individual income tax deductions for expenses related to motor vehicle travel between home and work; 2) when employer-provided motor vehicle transport between home and work is subject to fringe benefit tax (FBT); 3) when closely held corporations can claim income tax deductions for motor vehicle expenditures incurred by shareholder-employees; 4) the income tax apportionment rules for motor vehicle expenditures; 5) the ...