Helping New Zealand Businesses since 1995

Benefits/Tour Whats Hot Subscribe Testimonials Advisors / Mentors / Coaches Business Directory Partners Useful Links Contact Us Question & AnswerTax and Legal AdviceBest of Business Article DatabaseHumour with FBADoing Business in New ZealandTips and TrapsA - Z of NZ Business LawManagement/How To Series

New Zealand Businesses Have Subscribed
Search our Article Database »

Tax and Legal Advice

Structure Your Business Your Company
Partnerships and Trusts Laws Regarding Commercial Conduct
Employment Responsibilities Doing Business Globally
Taxation Administration Tax Residence and Source of Income
Assessable Income Deductable Expenditure
Trading Stock (or Inventory) Depreciation
Entertainment Tax Provisional Tax
Financial Arrangements Withholding Taxes
Year-end Tax Planning Fringe Benefit Tax
Goods and Services Tax Accident Compensation
Transactions Involving Land and Personal Property Farming
Forestry Business Policy Documents and Control Systems
Penalties, Binding Rulings & Disputes Resolutions
Most Popular
GST and Entertainment Tax (Pub: 3 Dec 2007)
Business entertainment is a necessary component of your marketing strategy. Some of this expenditure is tax deductible in full and some not. To get the best value from your entertainment budget, you need to understand the tax and GST implications.
more details
FBT and Entertainment Tax (Pub: 3 Dec 2007)
Beware of the tax and traps that may catch you when it comes to business entertainment expenditure. Know what is tax deductible and what is not, what is subject to FBT...
more details
Valuation of Trading Stock (Pub: 3 Dec 2007)
more details
Practical Hints (Pub: 3 Dec 2007)
more details
Application (Pub: 3 Dec 2007)
Fringe benefit tax (FBT) was introduced to tax non-cash benefits provided to employees or associates of employees. These rules also apply to non-cash benefits provided to shareholder employees and their associates.

The fringe benefit tax rules apply to a range of benefits. Principally these include:
• Providing the private use or availability for private use of a motor vehicle to an employee. (Private use includes travel between home and work in most instances)
• Employment related or low interest loans by an employer
• Other goods and services provided by an employer at a price lower than the market value
• Various insurance premiums for example medical insurance and certain superannuation contributions
• Any benefit of any other kind whatsoever, although there are some specific exemptions, such as Health and Safety related obligations on or off premises

The definition of fringe benefit is wide and FBT is a standard area for close review in a tax investigation. Inland Revenue Auditors frequently find mistakes in this area.
more details
Most Recent Additions
Managed Units – GST? (Pub: 3 Mar 2008)
The following has been adapted from a question received from one of our readers. When we looked into this we considered it worthy of highlighting in this issue for the benefit of all our readers as it is based on a discussion paper just released by IRD.

I have a client who owns a villa which has been operating as part of a Golf Course hotel complex until now. The villa is owned on a composite unit title. Until now the client has returned GST on income and claimed GST on the purchase of the property and expenses on the basis that it was a commercial dwelling, via the hotel/motel definition. My client has not renewed the hotel management lease and now intends to manage the villa themselves; the first tenancy being considered is for a six month term. I am aware of the 60% of value for GST purposes for longer than 4 weeks tenancies if we deem it still to be a commercial dwelling, however I am concerned as to whether it still falls under the commercial dwelling definition, being only a single villa and now not administered as part of the hotel by the management company.
more details
PRACTICAL HINTS (Pub: 3 Dec 2007)
more details
APPLICATION (Pub: 3 Dec 2007)
New Zealand tax residents (whether companies or individuals) are taxed on their worldwide income. In contrast, a non New Zealand tax resident (a tax resident of another country) is taxed only on income that is sourced in New Zealand. These issues of “tax residence” and “source of income” are central to determining liability to New Zealand taxation. When you hear the words “tax resident”, it is important to realise that they have a specific tax meaning which differs from the generally accepted meaning of residence.
more details
Tax Residence (Pub: 3 Dec 2007)
more details
Practical Hints (Pub: 3 Dec 2007)
more details