CA ANZ Core 4: Tax (NZ) study guide
CA ANZ Core 4: Tax (NZ) · Work through your exam, one topic at a time.
Core 4: Tax (NZ) is a module within the Chartered Accountants Australia and New Zealand (CA ANZ) CA Program, the practical pathway candidates complete after an accredited degree or conversion course on the way to CA membership and a Certificate of Public Practice. It suits graduate accountants and finance professionals working in or alongside New Zealand tax, whether in public practice, corporate tax, government or not-for-profit. The CA ANZ Core 4: Tax (NZ) study guide has 9 sections and about 2,615 words.
01Tax Administration and the New Zealand Tax System
New Zealand taxes income under the Income Tax Act 2007 and goods and services under the Goods and Services Tax Act 1985. Inland Revenue (IR) administers both.
339 words, about 2 min02Income Tax Fundamentals: Assessable Income, Deductions, and Timing
Assessable income includes income from employment, business, and investments, plus specific inclusions such as certain capital gains, dividends, and rents. Deductions are allowed under the general permission (nexus with income) and the general limitation (not of a capital, private, or domestic nature).
318 words, about 2 min03Taxation of Individuals, Employment Income, and Personal Deductions
Individuals are taxed on worldwide income with progressive rates. Employment income includes salary, wages, bonuses, and most benefits.
291 words, about 1 min04Business and Trading Income, Trading Stock, and Accrual Rules
Business income is income under ordinary concepts, including proceeds from sales, services, and certain receipts that are revenue in nature. Candidates must know the trading stock rules, the accrual rules for financial arrangements, and the treatment of bad debts , provisions , and grants .
297 words, about 1 min05Taxation of Entities: Companies, Partnerships, Trusts, and Look-Through Companies
Companies are taxed at the company rate and are separate legal entities; dividends are taxed to shareholders with imputation credits to avoid double taxation. Partnerships and look-through companies (LTCs) are transparent for tax: income and deductions flow through to partners or owners.
292 words, about 1 min06Goods and Services Tax
GST is a broad-based tax on supplies of goods and services in New Zealand, currently at 15% . Registered persons charge GST on taxable supplies and claim input tax credits on purchases.
286 words, about 1 min07Capital Gains, Depreciation, and Property Transactions
New Zealand has no general capital gains tax, but specific provisions tax certain gains, including the bright-line test for residential land, the land taxing provisions (intention, scheme, subdivision, and development), and depreciation recovery on sale. Candidates must know the depreciation rules, including the pooling method , the low-value asset write-off, and the building depreciation rules.
270 words, about 1 min08International Tax and Cross-Border Transactions
New Zealand taxes residents on worldwide income and non-residents on New Zealand-sourced income. Candidates must know the controlled foreign company (CFC) rules, foreign investment fund (FIF) rules, transfer pricing , and double tax agreements (DTAs) .
260 words, about 1 min09Tax Avoidance, Compliance, and Ethical Considerations
New Zealand has a general anti-avoidance provision (the arrangement provision) that can void a tax advantage from an arrangement with a dominant purpose of tax avoidance. Candidates must know the penalties regime, the disclosure obligations, and the tax agent and ethics standards.
262 words, about 1 min