New Zealand and Australia have comparatively broad tests for tax residency under domestic law that include place of incorporation as well as where a company is managed or controlled. This means New Zealand subsidiaries are at risk of being tax resident in Australia and vice versa.
Read MoreThere are some particular quirks and rules that apply when it comes to claiming a tax depreciation deduction. In this article we take a look at some of the common myths that prevail and tax rules that apply in this area.
Read MoreThis issue focuses on common issues for family-owned businesses.
Read MoreIn this issue I am highlighting common misconceptions and mistakes made by taxpayers AND examples of poor advice from advisers that I have encountered in recent years.
Read MoreIt is a reality of the modern and mobile world we live in that many of our clients have adult children who are now living overseas and particularly in Australia. This article discusses a little-known tax advantage for Kiwis who have jumped the ditch.
Read MoreThere is a saying that “an old tax is a good tax”, basically because it is in place and people are used to it. Typically, there is always negative reaction to both the discussion and implementation of new taxes. The bulk of comment about the Tax Working Group’s (TWG) recommendations has focused on a capital gains tax (CGT).
Read MorePayday filing was voluntary from 1 April 2018 and becomes mandatory from 1 April this year. It’s a good time now to confirm that your existing payroll software system is compatible for payday reporting.
Read MoreInland Revenue have established specialist teams at various District Offices to review non-compliance for income tax, and possibly GST, by providers of Airbnb and other short-term accommodation. It is relatively easy for Inland Revenue to establish that income from short- term accommodation has been earned.
Read MoreThe government Tax Working Group (TWG) has issued its interim report on tax reform. Chair, Sir Michael Cullen says “We have made some good progress in setting out the main choices and options – but there is still a great deal of work to do before we provide our Final Report in February.”
Read MoreI confess that I invariably regard management fees between associated persons or related parties with some skepticism, even though I have not worked for Inland Revenue for nearly 24 years. Are the fees legitimate payment for services provided, a legitimate tax planning tool, or a mechanism to transfer funds as there are no viable alternatives?
Read MoreOn 4 July, 2018 Inland Revenue released its finalised Operational Statement 18/01 - Commissioner’s statement on using a kilometre rate for work related running of a motor vehicle.
While the finalised statement is much improved compared to the previous draft, aspects of it still seem unnecessarily complicated in our view and will require some employers to give some thought to their reimbursement policies over the next year.
Read MoreA recently reported decision of the Taxation Review Authority (TRA) emphasises the need for shareholder/employees to carefully document financial transactions with their own companies, to be clear about what those amounts are paid for, and to ensure they pay tax when required. Failing to do so led to a large tax bill for one particular taxpayer.
Read MoreAlthough New Zealand has had GST for over 30 years, taxpayers and advisers alike continue to make errors. This article discusses the four most common GST errors and the rules for correcting GST errors.
Read MoreChanges in shareholding can result in unintended tax consequences. In this article I highlight some of the (i) main tax issues to consider and (ii) commonly-held misconceptions. Note, the following comments do not apply to QCs, LTCs, or listed companies.
Read MoreIn addition to the other mandatory reporting changes that have taken place for charities with annual expenditure of less than $2m, one of the most notable changes from an accounting treatment perspective is in relation to revenue recognition, particularly grants and donations.
Read MoreAs we have crossed the line of 31 March for another year inevitably the topic of tax enters our minds and equally as important, so does Fringe Benefit Tax (FBT). The 2018 fourth quarter Fringe Benefit Tax return or Annual Fringe Benefit Tax return for the year ended 31 March 2018 is due by 31 May 2018, so the time is nigh to turn our attention to the usual trip-ups in the FBT rules and any changes in these that have come up in the last year.
Read MoreAn additional option for calculating provisional tax known as AIM (Accounting Income Method) will become available for small businesses that use approved accounting software to prepare their accounts with effect from 1 April 2018. If you are a medium or large business reading this, take note that Inland Revenue very much see this roll out to small business as a pilot, with the intention that a form of it will be offered to larger businesses down the track. They are already exploring ideas for how to do this.
Read MoreThis month in Tax Bites, we discuss Foreign Tax Credits and GST for Exported Services
Read MoreA recent case, Van Uden v CIR, highlights the potential significance of a property owned by a trust being an individual’s permanent place of abode and thus triggering tax residency.
Read MoreEffective for reporting periods beginning on or after 1 Jan 2018 - This new accounting standard establishes principles to be applied in reporting information about the nature, amount, timing anduncertainty of revenue and cash flows arising from a contract with a customer. a gap in the market, a need that you can satisfy better than others?
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