Tax Conference 2019 - Auckland



 

    • Thursday, 21 November, 2019
    •  
      8:00 AM  -  9:10 AM
      Registration
      9:10 AM  -  9:15 AM
      Conference Open
      9:15 AM  -  9:45 AM
      Minister of Revenue Address - revenue update
      9:45 AM  -  9:50 AM
      5 minute break
      9:50 AM  -  10:30 AM
      Minister of Finance Address - financial update
      10:30 AM  -  11:00 AM
      Morning Tea
      11:00 AM  -  11:55 AM
      1A The capital / revenue boundary: unresolved issues
      The Government's decision not to implement a comprehensive tax on capital gains leaves a number of important interpretive and policy issues unresolved. Our presentation will address issues at the capital/revenue boundary, such as repairs and maintenance and feasibility costs, which (under current law) will likely continue to result in controversy and potential disputes. We will also consider the policy perspective, including possible solutions to the black-hole expenditure problem.
      .:
      Presenters:
      11:00 AM  -  11:55 AM
      1B Exercising taxing rights - the future of transfer pricing

      Transfer pricing has entered an era of heightened tax risk and controversy, driven by increases in demand for tax-related transparency. Recent developments under OECD’s work programme seek to contribute value to aspects of the supply chain not considered under traditional taxing principles.

      This session will walk through the evolution from classical methodology, impact of the BEPS wave and the digital economy, the future of transfer pricing under BEPS 2.0, and what this means for all New Zealand businesses.

      11:00 AM  -  11:55 AM
      1C Turning up the heat on the Internal Tax Function

      Moving from HoT (Head of Tax) to HoTR (Head of Tax Risk)

      In this presentation Campbell and Jo are going to discuss how the role and responsibilities of a Head of Tax has changed over time and what the future might hold.

      In particular they are going to discuss how the focus has evolved overtime to include the management of various risks, including reputational risk as a key metric, and what this means for how the tax function operates, where technology can play a part and what it means for interactions with key stakeholders including Inland Revenue, shareholders and management.

      Presenters:
      11:00 AM  -  11:55 AM
      1D Trusts - what you need to know
      The Trusts Act was 17 years in the making. Trustees now have 18 months to come to grips with how the Trusts Act will impact on the role of trustee and how trustees manage settlor and beneficiary expectations. Vicki’s presentation will also consider the impact of the Law Commission report on relationship property on trusts.
      11:00 AM  -  11:55 AM
      1E R&D funding: the good, the bad and the practical (no ugly insight)
      Everything you need to know about obtaining Government funding for R&D. The “good”, how policy officials have developed a regime to act as a tool to stimulate economic growth through innovation using the R&D tax incentive as the primary mechanism. The “bad”, the stories of what has gone wrong overseas and what Officials have done to ensure it does not happen in New Zealand. The practical, “hot of the press” how do businesses access the funding in year one and beyond. It will talk to the usability of the regime, with IR and Callaghan working collaboratively with businesses to obtain certainty about R&D funding.
      11:55 AM  -  12:00 PM
      5 minute changeover time
      12:00 PM  -  12:55 PM
      2A Where to now with technology and tax?
      The emergence of new technologies is a constant market reality and this session will focus on the current tax technology landscape both in New Zealand and abroad as well as what the near future holds. Examples of how technology is making a positive difference to tax processes and insights will be brought to life, as well as addressing practical questions about adopting new tax technologies. Where do I start? What is the business case for this product? What is the time commitment and likely people impact? How can I be confident it will be successful and how do I measure this?
      12:00 PM  -  12:55 PM
      2B Tax avoidance: Frucor, an exercise in logic and reason
      Recent court decisions demonstrate that discerning Parliament’s contemplation in terms of the principles in Ben Nevis is an exercise grounded firmly in statutory interpretation, taking direction from the purpose of the relevant regimes within the Act and the interaction between them. This session will canvas some of the recent cases involving allegations of tax avoidance, with a focus on the Frucor decision, and make some predictions about the issues that might exercise taxpayers, practitioners and the courts in times to come. The presenters will also offer some observations about tax authority activity in this area.
      Presenters:
      12:00 PM  -  12:55 PM
      2C The evolution of corporate residency in a BEPS world

      Countries’ response to the question of corporate tax residency represents a real dichotomy – unprecedented cross-border collaboration with over 100 jurisdictions involved in MLI negotiations, coupled with a nationalistic focus as many of NZ's treaty partners move towards a Competent Authority approach to determining corporate tax residency, rather than applying the more traditional test of effective management. This protectionism is more evident when key trading partners like Australia are also changing their approach to determining where an entity is centrally managed and controlled.

      This session explores the evolution of corporate tax residency in a post BEPS world, posing questions for both small and big business alike to think about.

      12:00 PM  -  12:55 PM
      2D The future of indirect taxes - global and NZ perspectives
      Lachlan Wolfers, KPMG's Global Head of Indirect Tax will share his predictions for how technology may change the future of indirect taxes. Gordon Witte, a senior policy advisor at Inland Revenue will comment on the implications for New Zealand’s GST system. Will consumption taxes become the dominant form of taxation, apply to financial services and look more like sales taxes? What does the future look like for GST invoices, returns and refunds?
      12:00 PM  -  12:55 PM
      2E R&D funding: the good, the bad and the practical (no ugly insight)
      Everything you need to know about obtaining Government funding for R&D. The “good”, how policy officials have developed a regime to act as a tool to stimulate economic growth through innovation using the R&D tax incentive as the primary mechanism. The “bad”, the stories of what has gone wrong overseas and what Officials have done to ensure it does not happen in New Zealand. The practical, “hot of the press” how do businesses access the funding in year one and beyond. It will talk to the usability of the regime, with IR and Callaghan working collaboratively with businesses to obtain certainty about R&D funding.
      12:55 PM  -  1:40 PM
      Lunch
      1:40 PM  -  2:35 PM
      3A The capital / revenue boundary: unresolved issues
      The Government's decision not to implement a comprehensive tax on capital gains leaves a number of important interpretive and policy issues unresolved. Our presentation will address issues at the capital/revenue boundary, such as repairs and maintenance and feasibility costs, which (under current law) will likely continue to result in controversy and potential disputes. We will also consider the policy perspective, including possible solutions to the black-hole expenditure problem.
      .:
      Presenters:
      1:40 PM  -  2:35 PM
      3B Tax Disputes - moving towards a level playing field for SMEs
      For SMEs, the “prompt and efficient resolution” of tax disputes often means dropping out of the tax disputes resolution process when a quick resolution appears unlikely. To date, little has been done to address taxpayer “burn-off”, although the Tax Working Group’s recommendations for the establishment of a taxpayer advocacy service and a truncated disputes resolution process for small taxpayers should go some way to creating a level playing field for SMEs. This session considers how such a taxpayer advocacy service should be structured and how the tax disputes resolution process could be changed to address taxpayer “burn-off”.
      1:40 PM  -  2:35 PM
      3C Primary Sector update
      A summary of tax law changes affecting the primary sector both enacted and proposed that the Rural Advisory Committee has been working on with Inland Revenue policy as well as well as some comments on proposed ETS changes as they relate to Forestry and the Zero Carbon Bill.
      1:40 PM  -  2:35 PM
      3D The future of indirect taxes - global and NZ perspectives
      Lachlan Wolfers, KPMG's Global Head of Indirect Tax will share his predictions for how technology may change the future of indirect taxes. Gordon Witte, a senior policy advisor at Inland Revenue will comment on the implications for New Zealand’s GST system. Will consumption taxes become the dominant form of taxation, apply to financial services and look more like sales taxes? What does the future look like for GST invoices, returns and refunds?
      1:40 PM  -  2:35 PM
      3E Working with BEPS legislation – Living in a post BEPS world
      This session will canvas various issues encountered by taxpayers/practitioners when applying the legislation in the new post-BEPS environment and strategies for working through these issues. The session will be example led and solution focussed. It will discuss challenges that have arisen when applying the deemed permanent establishment rules, restricted transfer pricing rules, hybrids rules, new source rules and the multi-lateral convention.
      2:35 PM  -  2:55 PM
      Afternoon tea
      2:55 PM  -  3:55 PM
      The decision not to proceed with a CGT - what are the implications? What happens now?
      Robin and Geof will give their perspectives as to why the capital gains tax proposed by the majority of the Tax Working Group failed to be adopted and they will then consider the implications for the New Zealand tax system of not taxing capital gains. Are changes to current tax policy necessary? What are the pressure points on the existing tax system? What are the options to respond to these pressures?
      3:55 PM  -  4:55 PM
      Closing debate - Taxes should be used more as a behavioural tool
      A light hearted take on a serious and often polarising topic relevant to the now with health and the environment to the fore. Are behavioural taxes the answer? What role should they play and to what extent should they be used? Are they effective in modifying behaviour? Andrea Black, leader of the affirmative team will try to convince you that taxes should be used more as a behavioural tool. Iain Craig, leader of the negative team will argue to the contrary. Who’s arguments will be most compelling? You be the judge.
      4:55 PM  -  5:00 PM
      Day One Close
      5:00 PM  -  7:00 PM
      Networking Function
    • Friday, 22 November, 2019
    •  
      7:45 AM  -  8:30 AM
      Breakfast
      8:30 AM  -  8:50 AM
      The future of tax - beyond digital
      This session will provide an OECD perspective on the future of tax beyond digital, along with a progress update on the international deliberations on global tax.
      8:50 AM  -  9:30 AM
      The future of tax - NZ implications - playing in a brave new world
      The world is moving through a period of rapid social, demographic, and technological change. One of the most visible signs of this change is the increasing digitalisation of the economy. Digitalisation presents important challenges for international tax frameworks and domestic tax systems. In this session, policy-makers from three institutions – the OECD, the Treasury, and Inland Revenue – will explore the potential implications of these changes for New Zealand.
      9:30 AM  -  9:40 AM
      10 minute transfer time
      9:40 AM  -  10:35 AM
      4A Case Law Update
      Bevan and David will discuss key cases decided since last year’s Tax Conference, including judgments considering tax avoidance (Frucor Suntory NZ Ltd v CIR and Cullen Group Ltd v CIR), GST on financial services (Provident Insurance Corporation Ltd v CIR) and application of the depreciation regime (Mercury NZ Ltd v CIR).
      9:40 AM  -  10:35 AM
      4B Mergers and acquisitions- current trends and issues
      This session will explore current issues experienced by practitioners in the mergers and acquisitions space, from a practical perspective. The session will cover how to deal with transactions involving warranty and indemnity insurance, the emergence of “locked-box” deals and purchase price allocation risks in asset deals.
      9:40 AM  -  10:35 AM
      4C Business Transformation - Release 3 reflections and what’s coming for Release 4
      Inland Revenue is on a transformation journey – the largest of its kind in New Zealand in terms of scale, complexity and change. Tania will provide an overview of where we are on this journey, and share some insights on the most recent changes (Release 3), reflecting on the achievements, challenges and key learnings along the way. Looking ahead at Release 4, Tania will focus on what’s next and what this means for customers.
      9:40 AM  -  10:35 AM
      4D The evolution of corporate residency in a BEPS world

      Countries’ response to the question of corporate tax residency represents a real dichotomy – unprecedented cross-border collaboration with over 100 jurisdictions involved in MLI negotiations, coupled with a nationalistic focus as many of NZ's treaty partners move towards a Competent Authority approach to determining corporate tax residency, rather than applying the more traditional test of effective management. This protectionism is more evident when key trading partners like Australia are also changing their approach to determining where an entity is centrally managed and controlled.

      This session explores the evolution of corporate tax residency in a post BEPS world, posing questions for both small and big business alike to think about.

      10:35 AM  -  10:55 AM
      Morning tea
      10:55 AM  -  11:45 AM
      The future of Inland Revenue investigations
      Starting with the present state, this session will initially explore IR's current focus areas, what risk areas are emerging, and how educational and enforcement activities are being managed across IR to ensure consistent taxpayer experience. Then we will explore ideas and strategies for the future, potentially including data mining tactics, self-audits, how IR could through technology and other tactics address geographical and industry sectors coverage challenges (including hidden economy), and other future thoughts, all from both an IR and practitioner perspective.
      Presenters:
      11:45 AM  -  12:35 PM
      MLI - an Australian perspective
      Australia’s approach to the MLI and perspectives on why some, but not all measures were adopted. Was Australia’s approach strategic and who did they offer a dance card to? Practical consequences arising from ratifying the MLI and possible dispute resolution actions.
      12:35 PM  -  12:45 PM
      Update: Tax Management NZ / Chartered Accountants ANZ member survey on Inland Revenue service
      Chris will provide a summary of the key findings from this year’s survey of members on their experience of dealing with Inland Revenue. The findings of this annual survey are followed up in Chartered Accountants ANZ’s regular discussions with Inland Revenue senior management.
      12:45 PM  -  1:10 PM
      Commissioner's session
      Against the background of transformation through which Inland Revenue is making it simpler, more open and certain for New Zealanders to pay their taxes and receive their entitlements, Commissioner of Inland Revenue Naomi Ferguson will provide perspective on Inland Revenue’s delivery of core functions which protect the integrity of New Zealand’s tax system.
      Presenters:
      1:10 PM  -  1:55 PM
      Lunch
      1:55 PM  -  2:50 PM
      5A Case Law Update
      Bevan and David will discuss key cases decided since last year’s Tax Conference, including judgments considering tax avoidance (Frucor Suntory NZ Ltd v CIR and Cullen Group Ltd v CIR), GST on financial services (Provident Insurance Corporation Ltd v CIR) and application of the depreciation regime (Mercury NZ Ltd v CIR).
      1:55 PM  -  2:50 PM
      5B Mergers and acquisitions- current trends and issues
      This session will explore current issues experienced by practitioners in the mergers and acquisitions space, from a practical perspective. The session will cover how to deal with transactions involving warranty and indemnity insurance, the emergence of “locked-box” deals and purchase price allocation risks in asset deals.
      1:55 PM  -  2:50 PM
      5C Tax avoidance: Frucor, an exercise in logic and reason
      Recent court decisions demonstrate that discerning Parliament’s contemplation in terms of the principles in Ben Nevis is an exercise grounded firmly in statutory interpretation, taking direction from the purpose of the relevant regimes within the Act and the interaction between them. This session will canvas some of the recent cases involving allegations of tax avoidance, with a focus on the Frucor decision, and make some predictions about the issues that might exercise taxpayers, practitioners and the courts in times to come. The presenters will also offer some observations about tax authority activity in this area.
      Presenters:
      1:55 PM  -  2:50 PM
      5D Trusts - what you need to know
      The Trusts Act was 17 years in the making. Trustees now have 18 months to come to grips with how the Trusts Act will impact on the role of trustee and how trustees manage settlor and beneficiary expectations. Vicki’s presentation will also consider the impact of the Law Commission report on relationship property on trusts.
      1:55 PM  -  2:50 PM
      5E Where to now with technology and tax?
      The emergence of new technologies is a constant market reality and this session will focus on the current tax technology landscape both in New Zealand and abroad as well as what the near future holds. Examples of how technology is making a positive difference to tax processes and insights will be brought to life, as well as addressing practical questions about adopting new tax technologies. Where do I start? What is the business case for this product? What is the time commitment and likely people impact? How can I be confident it will be successful and how do I measure this?
      2:50 PM  -  2:55 PM
      5 minute changeover time
      2:55 PM  -  3:55 PM
      Australian responses to international tax avoidance
      Australian tax law has seen a number of responses to perceived challenges to tax avoidance by multi-national entities and through international transactions. Australia’s general anti-avoidance provisions, and the transfer pricing rules, have been extended in significant ways. In addition, there have been comprehensive provisions enacted, directed to hybrid transactions. The session will look at the legislative context in which Australia has responded to perceived challenges to tax avoidance by multi-national entities and will provide an overview of those changes.
      3:55 PM  -  4:00 PM
      Conference Close
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