What was a temporary tax concession relating to donated trading stock has now become a permanent one thanks to the enactment of the Taxation (Annual Rates for 2023–24,Multinational Tax, and Remedial Matters) Act 2024 on 1 April 2024. Prior to March 2020, in most cases, if a business donated trading stock it resulted in deemed income equivalent to its market value. This resulted in a business being taxed on a deemed profit margin, even though no cash was received.
With the new Government now firmly settled in, legislation has been passed which reverses the interest deductibility limitation rules that were introduced by the previous government in 2021.
As previously introduced, the rules phased out the ability to deduct interest on loans drawn down before 27 March 2021 to purchase residential property over a period of five years. For loans drawn down after 27 March 2021, no interest deductions were allowed unless the property qualified as a ‘new build’.
As we approach the end of the year, it is crucial to assess your cash flow requirements for the upcoming four months and ensure you have the necessary financials and forecasts in place. To illustrate the importance of proactive financial planning, here's a case study from one of our clients.
A standard data policing check completed by Inland Revenue is to review taxpayer GST filing patterns to identify taxpayers that are GST registered, but
perhaps shouldn’t be.
In order to qualify for GST registration, a taxpayer needs to be conducting a “taxable activity”. This comprises a continuous or regular activity that involves making a supply of goods or services for consideration. This is a different test to whether a person is operating a “business” for income tax purposes, as it does not require an intention to make a profit.
Last year, the Green Party hit the headlines for suggesting banks, fuel companies, supermarkets, building products suppliers and energy generators/retailers should pay tax on super profits.
So, as we go into the election, we should give some thought as to whether some new innovative taxes are warranted.
The buoyant covid subsidy funded days are behind us, and New Zealand has entered a ‘technical’ recession. This was reinforced by the recent announcement that New Zealand’s corporate tax paid was almost 11% down in the 11 months to May relative to Government expectations.
"Yorke Stone assisted me in purchasing the building for my business, which was one of my three year goals, much sooner than I had expected"
"Through an organization called Wharariki, I met Nancy and Daniel when I was in search of an accountant who could help me achieve my goals and provide proactive, helpful, welcoming, and understanding services.
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Here we look at the recent legislation that has been passed around retention money and what this means for subcontractors.
Retention money relates to money owed to a subcontractor that is retained by a head contractor, which is usually a percentage of the contract value, to ensure work is completed as per the contract. Read the full article here.
The leaky homes crisis represents one of the most severe problems faced by New Zealand’s property sector and continues to cause stress and anxiety for those affected. Adding to the uncertainty for rental property owners has been the question of whether repair costs are immediately deductible as ’repairs and maintenance’ Read the full article here.
With the upcoming elections, this article on the Tax policies may be of interest.
Given that either Labour or National are likely to enter into coalition agreements of some form with the Green Party and Act, respectively, and the tax policies of the two main parties are more ‘vanilla’, it is worth reviewing the tax policies of the two minor parties as this is where unexpected change may come from.
For those of you who prepare and file FBT returns on behalf of a GST- registered employer, you will be familiar with the GST on FBT adjustment that forms part of the FBT return.
In addition to the tax loss carryback scheme, the New Zealand Government has introduced a number of other tax changes to assist businesses and individuals to get through COVID-19. Currently, if an asset is purchased for less than $500 it does not need to be depreciated.
When you need the best electricians in Whangarei, Mr Electri City are the team to call.
Tracey & Jerrie bring a fresh new approach to electrical services around the Northland district, offering quality work you can rely on.
Buying or selling a business is a significant decision, and commonly involves vendor and purchaser negotiations on many aspects of the transaction.
We all know how Covid-19 has impacted our economy and our businesses. Some businesses have experienced a growth, others a downturn and the struggle to keep staff employed and the business open is very real for others.
It is common for disagreements to arise between taxpayers and Inland Revenue on the GST treatment of land transactions, but less common for these disputes to arise between a vendor and purchaser.
Payday Filing is a new method of submitting and processing employment information to the IRD, meaning you will have to file more information and more frequently.
The way employers report payroll information to Inland Revenue (IRD) is changing. From 1 April 2018, IRD introduced a new electronic reporting system, providing employers the option of filing payroll information every payday.
New rules for GST on low-value imported goods will create a level playing field with international and domestic retailers.
The Labour Government established the Tax Working Group (“the Group”) in January 2018 to review the existing New Zealand tax framework and to provide recommendations for improvements to the fairness, balance and structure of the tax system over the next 10 years.
Letting your employees work from home can boost productivity levels and job satisfaction, but it also opens your business up to new risks that must be covered by your insurance policy.
The Labour-led Government recently released the Research and Development (R&D) Tax Incentive Discussion Document, which proposes a 12.5% R&D tax credit on eligible expenditure from 1 April 2019.
The global economy is seeing New Zealand (NZ) taxpayers invest in overseas companies. However, many people acquire foreign investments without understanding how they will be taxed.
The Taxation (Annual Rates for 2018-19, Modernising Tax Administration, and Remedial Matters) Bill was introduced into parliament in June 2018. The Bill seeks to improve tax administration and modernise the revenue system by making tax “simpler and easier” for individuals.
Over the last decade, the use of digital or virtual currencies, known as “cryptocurrencies”, has grown dramatically in popularity. A single piece of Bitcoin is currently valued at over $9,000 NZD.
On 3 April, Inland Revenue issued a draft ‘Questions we’ve been asked’ (QWBA) covering the tax treatment of allowances and benefits paid or provided to farm workers.
A question I hear often is “How safe it Xero?” This often comes up when I am chatting with a client about whether or not they want to use it.
The IRD’s current IT system was developed back in the 1990s, before Microsoft Windows and smart phones.
If an individual is a New Zealand (NZ) tax resident they will be taxed on their worldwide income.
Irrespective of the stage of a business’s life cycle, managing working capital is extremely important.
The question of whether GST should be removed from food has been raised in the media and by political parties a number of times over recent years.
In the past, in order for a principal caregiver to receive an in-work tax credit there was a requirement for the person to be a full-time earner receiving income from a work activity such as salary, wages, or a shareholder-employee salary.
In taking on a commercial lease for a business premises, there are many things for a business owner to consider.
In relation to corporate failure, there are some common misconceptions about the liability of company directors.
Many businesses that have multiple, related companies overlook the opportunity to be able to form a group for GST purposes.
Taxpayers often travel away on business and take a companion to accompany them. As a taxpayer, travel expenses incurred in the course of earning assessable income can be deductible provided there is sufficient connection between the expenditure incurred and the taxpayer’s business activities.