Like New Zealand, the United States’ penalty framework aims to encourage voluntary compliance by taxpayers with all aspects of tax administration. This includes: filing accurate and truthful returns on time, and; paying tax on time. The Internal Revenue Service...
Internal Revenue Service (IRS) Commissioner John Koskinen addressed attendees at the AICPA tax conference earlier this month in Washington DC. “It promises to be another complicated filing season, and not just because of our budget situation”. “Along...
In New Zealand, if you understate your income tax in your tax return, you may be subject to a shortfall penalty. The shortfall penalties are as follows: Not taking reasonable care: 20% Unacceptable tax position: 20% Gross carelessness: 40% Taking an abusive tax...
If you’re a U.S. citizen with a foreign trust, take heed of the U.S. tax implications of having your trust. It is nigh on impossible for the trust to be treated as a separate entity for U.S. tax purposes – or that portion of the trust’s assets that...
Whilst New Zealand is underway with revamping its tax rules around employee share schemes, the United States has a well-defined framework for the tax treatment of such schemes, including stock options. US rules Employee stock options in the United States fall into two...
It is interesting to observe the Inland Revenue Department’s policy programme, which is currently focussing on three key areas: 1. Business transformation; 2. BEPS and international tax reform; and 3. further improvements and enhancements to tax and...
