FIF question: Selling shares to stay under threshold?

[blackcap]

CQ 5(1)(d) "if the person is a natural person and not acting as a trustee"

A company is not a natural person. The de minimis limit doesn't apply to companies.

You mean to say I should have been paying FIF tax on the $10,000 odd of Aussie investments a company I control owns? Oops...

[scottwalshnz]

You mean to say I should have been paying FIF tax on the $10,000 odd of Aussie investments a company I control owns? Oops...

If they aren't exempt stock, that would be my take. I'm no expert, I just went and read the act.

[blackcap]

If they aren't exempt stock, that would be my take. I'm no expert, I just went and read the act.

Cheers scottwalshnz, I call a terrible indictment on the IRD here. How are ordinary business and companies supposed to know their obligations in this regard when I who have an interest in the markets, knew about FIF (just presumed the 50K applied to all and sundry) still did not know of this obligation? I know ignorance of the law is no defence but surely there should have been better communication at the time? How many NZ companies have investments overseas I wonder and are unaware of their obligations as they stand.....

[scottwalshnz]

Cheers scottwalshnz, I call a terrible indictment on the IRD here. How are ordinary business and companies supposed to know their obligations in this regard when I who have an interest in the markets, knew about FIF (just presumed the 50K applied to all and sundry) still did not know of this obligation? I know ignorance of the law is no defence but surely there should have been better communication at the time? How many NZ companies have investments overseas I wonder and are unaware of their obligations as they stand.....

I think they have tried to communicate the obligations, maybe it could be better, but they have attempted to get the information out.

http://www.ird.govt.nz/toii/fif/how-...threshold.html

They do have a guide on the subject, I think it needs to be clearer in places: http://www.ird.govt.nz/forms-guides/...dend-rate.html
Plus the guide on completing an IR4 for your Company Tax return does mention it too: http://www.ird.govt.nz/forms-guides/...uide-2013.html (found the 2013 one first)

[blackcap]

I think they have tried to communicate the obligations, maybe it could be better, but they have attempted to get the information out.

http://www.ird.govt.nz/toii/fif/how-...threshold.html

They do have a guide on the subject, I think it needs to be clearer in places: http://www.ird.govt.nz/forms-guides/...dend-rate.html
Plus the guide on completing an IR4 for your Company Tax return does mention it too: http://www.ird.govt.nz/forms-guides/...uide-2013.html (found the 2013 one first)

Thanks, have had a good read...

So following this logic, I am better off "gifting" my brother in Australia a whole heap of cash and he can "invest" in the Australian stock market, making use of the franking credits and I not have to worry about the FIF. A win-win situation?

[Harvey Specter]

Thanks, have had a good read...

So following this logic, I am better off "gifting" my brother in Australia a whole heap of cash and he can "invest" in the Australian stock market, making use of the franking credits and I not have to worry about the FIF. A win-win situation?

Definitely a Win for your Brother if he decides not to 'gift' it back.

[blackcap]

Definitely a Win for your Brother if he decides not to 'gift' it back.

Haha yes indeed... there is that inherent risk involved there as well.... But I trust him!