NEW ZEALAND Law and Practice Contributed by: James Cochrane, Andrew Comer, Carlo Wan and Graeme Crombie, Lane Neave
mental impact of ‘mining’ cryptocurrencies” and this issue is addressed in detail in the FEC Report. 1.2.4 Tax NZ’s approach to crypto-assets taxation has to date – according to the FEC Report – been “ad hoc and belated” with “sporadic amendments to the Tax Acts as they come”. The FEC Report recommended that the IRD should explore whether tax incentives for crypto-assets service providers are necessary or appropriate, in addition to continuing work to provide clarity around the treatment of crypto-assets in terms of tax and to encourage investment of capital in NZ, as well as enhance the competitivenesul s of the NZ tax system. The most significant legislative change to date has been with the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022, which affirmed that crypto-assets are not subject to GST, and are generally “excepted financial arrangements”. NZ, like many countries, faces challenges in the classification of different crypto-assets within its existing tax sys- tem. The IRD has issued helpful guidance on the taxation of crypto-assets. It notes, among other things, that crypto-assets are treated as a form of property for tax purposes. The IRD guidance includes a number of “tax technical” issues papers and rulings covering a range of topics. Implementation of the OECD’s CARF As discussed in 1.1.1 Evolution of Uses of Block- chain and 1.1.3 Regulation of Blockchain Technol- ogy , on 1 April 2026, New Zealand adopted CARF. This framework mandates crypto-asset service pro- viders to collect and report user transaction data to the IRD, enhancing transparency and aligning with international tax standards. Inland Revenue’s Enforcement Actions In April 2026, the IRD stated that it had identi- fied 355,000 unique crypto-asset users conducting approximately 57 million transactions totalling NZD36 billion. The IRD will be matching information obtained through CARF with tax returns and identifying dis- crepancies. Letters have been sent to individuals the
IRD believes have underreported their crypto-asset earnings. 1.2.5 Insolvency There are currently no specific resolution or insolvency requirements/regimes for crypto-asset firms in NZ. The existing legal framework continues to apply, with general insolvency procedures under the Companies Act 1993 (the “CA93”) and related legislation govern- ing such matters. Case law and related commentary regarding Cryp- topia is likely to assist insolvency practitioners and claimants in other NZ crypto-asset related insolven- cies. Similarly, NZ market participants may receive guidance from overseas insolvencies. Insolvency Procedural Options • Liquidation: While each insolvency situation will turn on its own facts, liquidation under the CA93 (or Limited Partnerships Act 2008) may be well suited to insolvent exchanges or custodians that also act as trustees on behalf of account holders. Liquidators are subject to the supervisory jurisdic- tion of the High Court, and liquidations do not face the same tight time constraints as voluntary admin- istrations. Liquidators have the authority to recover, protect, preserve, and administer trust assets, and there is considerable case law guidance on this. • Voluntary administration (VA): In contrast, VA is pri- marily designed to address the interests of credi- tors. Although Part 15A of the CA93 refers to the interests of both creditors and shareholders, the courts have clarified that shareholders’ interests are secondary. VA may therefore be unsuitable for dealing with assets held on trust, and the tight tim- ing requirements (even with court-ordered exten- sions) make it challenging to resolve questions about whether assets are held in trust in a timely manner. However, a successful deed of company arrangement (DOCA) was reached in relation to the VA of Australian company, Digital Surge, which col- lapsed following FTX. • Schemes of arrangement under Part 15 CA93 may not be available for the distribution of trust assets because Part 15 requires that the arrangement be between a company and its creditors or sharehold- ers. Under Part 15, a creditor is defined as being
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