Investment Tax Issues Series

Making the best tax decision for investment income has become increasingly difficult with the plethora of investment options available.

This series covers relevant topics in a practical manner to achieve the best possible tax outcome when filing tax returns.
Each On-Demand webinar is 1.5 hours.

Session 1: Tax Issues affecting those in financial investment industry
This course is especially designed for IFA members.

Financial Arrangements:
  • What is a financial arrangement?
  • Spreading rules/options
  • Cash basis person expention
  • Base Price Adjustments
  • Bad debts
Foreign Investment Funds:
  • What is an attributing interest in a FIF?
  • De minimis thresholds
  • Methods for calculating income
  • Investments gone bad

Controlled Foreign Companies:

  • What is a controlled foreign company investment?
  • How do the rules work?


  • Types of PIE and tax treatment options

Foreign Exchange issues

Loss entities for investment

Investment structure options

Session 2 - FIFs Refresher and Update
  • Rules generally
  • Options available
  • Things to be aware of

Session 3 - Inbound/Migrating Investment Tax Issues
This 1.5 hour webinar will help you with mainly NZ non-resident tax issues and areas such as transitional residency, permanent residency, permanent establishment issues, DTA impacts, source rules, trust issues and structuring options
  • When dealing with non-residents: what income is subject to tax in NZ?
  • Double Tax Agreement: What are the implications if a taxpayer is a dual resident?  When do you pay tax in a foreign country and also NZ?
  • Source rules: business income, income from personal property and land, dividends,
  • Interest or redemption payment from money lent outside NZ: source of trust fund income  
  • Determining whether a company has a permanent establishment in NZ
  • Trust taxation for non-residents: foreign, complying and non-complying trust
  • Foreign Investment issues: foreign pension, superfund, FIF
  • CFC issues: active vs passive distinction, family company scenarios
(No Session 4)

Session 5
- Financial Arrangements

Financial arrangements: what is a financial arrangement, excepted financial arrangements, cash basis persons, base price adjustments and bad debt issues. This session will look at the breadth of things that fall into the financial arrangement rules which includes term deposits, certain loans, certain acknowledgements of debt, bank accounts, certain bonds and certain other investments.  We will discuss the methods of calculating income under the financial arrangement rules which effectively override the "derivation of income” rule and the deductibility of expenses. 

If someone is a cash basis person they have the ability to choose to use a spreading method or return income under normal income assessability rules.  We will discuss who can be a cash basis person, and factors to consider when the choice is being made.  We will look at the base price adjustment calculation and when it needs to be made and we will finally discuss the issues that arise when a financial arrangement turns bad and what if any deduction may be available.

With the ongoing financial crisis we are seeing more and more investments turn bad.  Understanding whether those investments are a financial arrangement (or are covered by a different regime), and what options are available for the treatment of income and any losses is important for all practitioners.

Who Should Attend?
Accountants, tax advisers, and Independent Financial Advisers who deal with FIFs, PIEs, foreign investment for their clients.