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Company Incorporation - Valuation & Different Classes of Shares

A lawyer client who currently trades in his own name is looking to incorporate a company and trade from that company.

1. Does a formal valuation need to be made of his existing business to enable a value for the transfer to the company or would something less formal suffice?

2. How do you differentiate between “A” and “B” class shares (voting and non voting shares) when you incorporate?

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GST On Sale Of Property - Farm House, Land And Assets

My client bought a farm with a house, a cottage and a glasshouse on the farm. This farm was purchased in 2002 with GST zero-rated. The house and cottage were rented to my client as residential rental and no GST charged on rental. The glasshouse was rented out with GST. Now client is looking to sell the farm including the house, cottage and glasshouse. How to fill out the sales agreement?

i.e. What is the correct GST treatment for this sale?

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GST On Services To Non-Residents

A client is a closed company offering Maori cultural tourism activities.

The client was recently awarded a contract for providing Maori performances on cruise ships, when the ships stop over at various New Zealand harbours. The customer/ cruise ship tour organiser is a foreign company based in the UK.

Should our client charge normal GST @ 15% for the services offered to the foreign cruise ship company or is the service qualified for zero rated GST?

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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?

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