New Zealand Publishes Draft Approval on Foreign Exchange Rates

New Zealand Inland Revenue has published for comment a draft approval concerning foreign exchange rates. The deadline for comments is 11 October 2021.

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Introduction

1. The Act requires foreign currency amounts to be converted to NZD to calculate a taxpayer's New Zealand income tax liability.

2. In some cases, the Act prescribes a currency conversion method or exchange rate source to use, but in most cases it does not. Where the Act does not prescribe a currency conversion method, th…