21 January 2016 Important New Zealand tax residency case concluded in favor of taxpayer A recent decision of the New Zealand Court of Appeal (CIR v Diamond) has ruled in favor of the taxpayer and confirmed the earlier decision of the New Zealand High Court that the mere availability of a dwelling in New Zealand will not be sufficient in itself to create a permanent place of abode; an element which is crucial in determining tax residency of individuals in New Zealand. The decision should clarify when the Commissioner of Inland Revenue is able to impose tax on overseas income earned by absentees who continue to own residential property in New Zealand and will come as welcome relief for many New Zealanders working overseas. A Tax Alert prepared by Ernst & Young's Human Capital Group, and attached below, provides additional details. Document ID: 2016-0142 |
