Following the 2015 tax residency case CIR v Diamond, which went to the Court of Appeal, Inland Revenue has updated its tests for NZ tax residency through the issue of Interpretation Statement IS 16/03, issued 21 September 2016.

IS 16/03 supersedes IS 14/01, issued in 2014. Both statements address the rules for determining the tax residency of individuals, companies and the tax rules for trusts.

The 2016 statement refines the issue of ‘permanent place of abode’ pursuant to the Diamond Case.