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100+ Free CA ANZ Core 4: Tax (NZ) Practice Questions

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2026 Statistics

Key Facts: CA ANZ Core 4: Tax (NZ) Exam

CACC1503NZ

Subject Code

CA ANZ CA Program

15%

NZ GST Rate

GST Act 1985 / IRD

28%

Company Tax Rate

Inland Revenue (IRD)

39%

Trustee Tax Rate

Inland Revenue (IRD)

$60,000

GST Registration Threshold

Inland Revenue (IRD)

~9 weeks

Study Period

CA ANZ CA Program

CA ANZ Core 4: Tax (NZ), subject code CACC1503NZ, is an online GradDipCA subject with about a 9-week study period, earlier assessment, and a high-stakes invigilated final examination combining objective and extended-response questions on New Zealand tax law. Coverage spans residency and source, income and deductions under the Income Tax Act 2007, depreciation, taxation of individuals, companies, partnerships, look-through companies and trusts, imputation, GST at 15% under the GST Act 1985, fringe benefit tax, PAYE and withholding taxes, provisional tax and administration under the Tax Administration Act 1994, KiwiSaver, anti-avoidance under section BG 1, and professional ethics. CA ANZ does not publish question counts, pass marks, or subject pass rates.

Sample CA ANZ Core 4: Tax (NZ) Practice Questions

Try these sample questions to test your CA ANZ Core 4: Tax (NZ) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Income Tax Act 2007, which test is the primary basis for determining whether a natural person is a New Zealand tax resident?
A.The 183-day day-count test or having a permanent place of abode in New Zealand
B.Holding New Zealand citizenship regardless of physical presence
C.Owning any real property situated in New Zealand
D.Being employed by a New Zealand-incorporated company
Explanation: A natural person is a New Zealand tax resident if they are present in New Zealand for more than 183 days in any 12-month period, or if they have a permanent place of abode in New Zealand. The permanent place of abode test can apply even when the day-count is not met.
2A company is treated as a New Zealand tax resident under the Income Tax Act 2007 if which of the following applies?
A.It earns more than 50% of its income from New Zealand customers
B.It is incorporated in New Zealand, has its head office or centre of management in New Zealand, or directors exercise control here
C.It has at least one New Zealand-resident shareholder
D.It is registered for GST in New Zealand
Explanation: A company is an NZ resident if any of four tests are met: incorporated in NZ, head office in NZ, centre of management in NZ, or control by directors exercised in NZ. Meeting any one is sufficient.
3A New Zealand tax resident earns interest from a bank account held in Australia. How is this income treated for New Zealand tax purposes?
A.It is exempt because the source is outside New Zealand
B.It is taxable only if the funds are remitted to New Zealand
C.It is taxable in New Zealand because residents are taxed on worldwide income, with a foreign tax credit available for Australian tax paid
D.It is taxed at a flat 15% non-resident rate
Explanation: New Zealand residents are taxed on their worldwide income. Foreign-sourced interest is assessable, but a foreign tax credit is generally available for tax paid in the source country, subject to the New Zealand tax on that income.
4Which of the following amounts is most clearly assessable income under the Income Tax Act 2007?
A.A genuine gift received from a family member
B.An inheritance received under a will
C.A lottery prize from a New Zealand lottery
D.Salary and wages received from employment
Explanation: Salary and wages are income under ordinary concepts and specifically assessable. New Zealand does not have a general capital gains tax, and gifts, inheritances, and lottery winnings are generally not assessable income.
5A taxpayer buys land with the dominant purpose of resale at a profit. When the land is sold at a gain, how is the gain treated?
A.It is assessable income because land acquired for the purpose of disposal is taxed under the land sale rules
B.It is always a tax-free capital gain
C.It is exempt because New Zealand has no capital gains tax
D.It is taxed only if the land was held for less than two years
Explanation: Although New Zealand has no general capital gains tax, the Income Tax Act 2007 taxes land sales where the land was acquired with a purpose or intention of disposal. The dominant purpose of resale makes the gain assessable income.
6Under the general permission in section DA 1 of the Income Tax Act 2007, an amount of expenditure is deductible if it has the required nexus with which of the following?
A.Any expenditure incurred during the income year
B.Deriving assessable or excluded income, or carrying on a business for that purpose
C.Expenditure that increases the taxpayer's net worth
D.Only expenditure paid in cash before year-end
Explanation: Section DA 1 allows a deduction for expenditure incurred in deriving assessable income or excluded income, or in the course of carrying on a business for that purpose. This nexus is the general permission, subject to the general limitations.
7Which of the following is denied a deduction by the private limitation in the general limitations of the Income Tax Act 2007?
A.Interest on a loan used to acquire income-earning rental property
B.Repairs and maintenance on business premises
C.Expenditure of a private or domestic nature
D.Accounting fees for preparing the business tax return
Explanation: The general limitations override the general permission. The private limitation denies a deduction to the extent expenditure is of a private or domestic nature, even if it would otherwise meet the nexus test.
8A business incurs expenditure that provides an enduring benefit and creates a new capital asset. Under the capital limitation, this expenditure is:
A.Fully deductible in the year incurred
B.Deductible spread evenly over three years
C.Deductible only when the asset is sold
D.Non-deductible as capital expenditure, though it may be depreciable if it is depreciable property
Explanation: The capital limitation denies an immediate deduction for capital expenditure. If the asset is depreciable property, the cost is recovered through depreciation deductions over time rather than an immediate write-off.
9What is the standard rate of Goods and Services Tax in New Zealand under the Goods and Services Tax Act 1985?
A.15%
B.10%
C.12.5%
D.20%
Explanation: GST in New Zealand is charged at the standard rate of 15% on most supplies of goods and services. Certain supplies are zero-rated (0%) or exempt.
10A person carrying on a taxable activity must register for GST when their taxable supplies exceed which annual turnover threshold?
A.NZD 30,000 in a 12-month period
B.NZD 60,000 in a 12-month period
C.NZD 75,000 in a 12-month period
D.NZD 100,000 in a 12-month period
Explanation: Compulsory GST registration is required when the value of taxable supplies in a 12-month period exceeds, or is expected to exceed, NZD 60,000. Below this, registration is voluntary.

About the CA ANZ Core 4: Tax (NZ) Exam

Core 4: Tax (NZ) (CACC1503NZ) is a Core GradDipCA subject that develops the ability to apply New Zealand tax law, including the Income Tax Act 2007, the GST Act 1985, and the Tax Administration Act 1994, to real-world scenarios across income tax, GST, FBT, entity and trust taxation, imputation, provisional tax, anti-avoidance, and tax ethics.

Assessment

Question count not published by the exam provider

Time Limit

Invigilated final examination at the end of the study period; duration set by CA ANZ each term

Passing Score

Set by CA ANZ per subject; no public fixed raw percentage

Exam Fee

Subject fee set by CA ANZ per term within the GradDipCA; see the CA ANZ timetables and fees schedule (Chartered Accountants Australia and New Zealand (CA ANZ))

CA ANZ Core 4: Tax (NZ) Exam Content Outline

~40%

Income Tax, Deductions and Depreciation

Residency and source, income under the Income Tax Act 2007, the general permission and limitations, timing, trading stock, depreciation, depreciation recovery, land sale and bright-line rules, and individual taxation.

~20%

Entity, Trust Taxation and Imputation

Companies, partnerships, look-through companies, trusts and beneficiary income, the imputation system, imputation credit accounts, loss continuity, and the trustee tax rate.

~15%

Goods and Services Tax (GST)

Registration, taxable activity, time of supply, accounting bases, zero-rated and exempt supplies, input tax apportionment, going concerns, compulsory zero-rating, and remote services under the GST Act 1985.

~15%

FBT and Withholding Taxes

Fringe benefit tax rates and benefits, PAYE, resident and non-resident withholding tax, schedular payments, ESCT, and KiwiSaver/superannuation obligations.

~10%

Tax Administration, Anti-Avoidance and Ethics

Provisional tax, the Tax Administration Act 1994, use of money interest, penalties, disputes, binding rulings, the general anti-avoidance rule, and professional and ethical obligations in tax practice.

How to Pass the CA ANZ Core 4: Tax (NZ) Exam

What You Need to Know

  • Passing score: Set by CA ANZ per subject; no public fixed raw percentage
  • Assessment: Question count not published by the exam provider
  • Time limit: Invigilated final examination at the end of the study period; duration set by CA ANZ each term
  • Exam fee: Subject fee set by CA ANZ per term within the GradDipCA; see the CA ANZ timetables and fees schedule

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CA ANZ Core 4: Tax (NZ) Study Tips from Top Performers

1Work directly from current New Zealand legislation, including the Income Tax Act 2007, GST Act 1985, and Tax Administration Act 1994.
2Practice applying rules to scenarios rather than memorising, because the exam rewards application of tax law to facts.
3Keep a rates and thresholds sheet current, including the 15% GST rate, 28% company rate, 39% trustee rate, and 2025-26 income tax brackets.
4Drill the imputation 28/72 ratio and grossing-up calculations until they are automatic.
5Master the difference between zero-rated, exempt, and standard-rated GST supplies and the input tax consequences of each.
6Integrate ethics into every answer, applying the CA ANZ Code of Ethics fundamental principles to tax practice scenarios.

Frequently Asked Questions

What is CA ANZ Core 4: Tax (NZ)?

Core 4: Tax (NZ), subject code CACC1503NZ, is a Core subject in the CA ANZ Graduate Diploma of Chartered Accounting (GradDipCA). It develops the ability to apply New Zealand tax law to scenarios and is assessed through earlier assessment plus an invigilated final examination.

What does the Tax (NZ) exam cover?

It covers New Zealand income tax, deductions and depreciation, taxation of individuals, companies, partnerships, look-through companies and trusts, imputation, GST under the GST Act 1985, fringe benefit tax, PAYE and withholding taxes, provisional tax and administration under the Tax Administration Act 1994, KiwiSaver, anti-avoidance, and tax ethics.

How long is the Tax (NZ) study period?

Each CA Program term for the subject runs for approximately a 9-week study period. Candidates typically commit around 10 to 15 hours per week, building to the invigilated final examination.

What is the GST rate tested in Tax (NZ)?

New Zealand GST is charged at the standard rate of 15% under the Goods and Services Tax Act 1985. The registration threshold is NZD 60,000 of taxable supplies in a 12-month period, with zero-rated and exempt supplies treated differently.

What is the New Zealand trustee tax rate tested in this subject?

Since 1 April 2024 the trustee tax rate is 39%, aligned with the top personal marginal rate. A de minimis allows trusts with trustee income of NZD 10,000 or less to remain taxed at 33%.

Does CA ANZ publish a pass rate for Tax (NZ)?

No. CA ANZ does not publish subject-level pass rates, question counts, or a fixed raw passing percentage for Core 4: Tax (NZ). The pass standard is set by CA ANZ for the invigilated examination and earlier assessment.