16 Transacting with Associates parts 1&2 (webinar recordings)
3 CPD hours. Prices NZD & excl. GST - Broadcast Dates: 27 October & 3 November 2016
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Product Description
Have you ever advised on a transaction
between family members, companies
with common ownership, or parties with
common economic or social interests?
Did the seller account for GST in the right
period and on the right amount?
Was the purchaser entitled to claim GST,
and if so, did they claim in the right period
and the right amount?
Were the proceeds of selling land taxable
due to “tainting” by an associate’s land
related business?
Did the seller use the correct value to
determine depreciation recovery and other
income arising from the sale?
Is the purchaser claiming depreciation at
the correct rate and on the correct “cost”?
Have the tax implications arising from
the rent-free period or interest-free loan
provided to the associate been considered?
The tax rules that apply to transactions
between persons with common economic
interests or family ties can differ from
those that apply to transactions between
arms’ length parties. When the parties to a
transaction have shared economic interests
or family ties, they can have an incentive
to manipulate the transaction to achieve
favourable tax consequences for one or
both parties. Tax legislation relies on the
concept of associated persons to ensure
taxpayers with common economic interests
or family ties cannot use that connection
to obtain a tax advantage. Even when the
parties have no intention to manipulate the
transaction for tax advantages, these rules
may still apply.
This course considers common
scenarios involving transactions between
associated persons and how tax legislation,
first establishes whether two persons are
associated and secondly, seeks to limit
their ability to manipulate the transaction to
achieve a favourable tax outcome.