Question and Answers

Deductions For Education

We have two questions in regards to education fees and whether they are tax deductible.

Question 1) One of our clients is arguing that his 3-year university fee should be a deductible expense as he won’t be able to derive income without the 3-year study. However, the 3-year university study sounds more like a personal expense to me. Are these costs deductible?

Question 2) We have another client who is working in a law firm. He is currently working toward obtaining a certificate from the Law Society. Is the education cost incurred to obtain a certificate deductible?

TaxationJack WiltonSeptember 24, 2019Deductions - Education and Training

Sale Of Shares - Deduction For Consulting Fees

Shareholders of a company sold its shares to a non-related company. Are the consultancy fees paid to one of the big four accounting firms in relation to settlement dispute tax deductible?

TaxationJack WiltonSeptember 5, 2019Capital vs Revenue

US Citizenship And Anti-Money Laundering (Aml)

Is there any issue such as Anti-Money Laundering (AML) with accounting clients having dual citizenship with NZ and USA?

TaxationJack WiltonSeptember 5, 2019Residency

Accounting And Tax For Bonus Paid After Year End

My client has implemented a new bonus scheme for his staff so that they are paid a “share of profit” of the company and this is calculated when the annual accounts have been drafted (probably in June). Once calculated, he wants to post that bonus back into the March 2019 year before we finalise the accounts but I don’t know whether I am comfortable with that given the actual payment will be through the payroll in the current financial year. Can you please advise the correct treatment?

Taxation, Accounting and FinanceJack WiltonSeptember 5, 2019Employees

NZ Tax Return For Trust All NZ Income Subject To Withholding Tax

An NZ trust only has bank term deposits which generate income in NZ. 20-33% withholding tax has been deducted. The trust has NZ settlors and Australian Trustees. Beneficiaries are NZ companies and Australian persons. ATO in Australia treats this trust as an Australian trust for tax purposes. Is the trust still required to file an NZ tax return?

TaxationJack WiltonSeptember 5, 2019Tax Administration

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