News
Importance of Good Record Keeping
A recent case Taxation Review Authority (TRA) decision has highlighted the importance of good record keeping. The taxpayer, an accountant, was accused by Inland Revenue (IRD) of using a company as a vehicle to create a tax advantage. He claimed to have sold his sole trade accountancy practice to his own company for $2m in … Read more
Trust Reforms
Trusts are a popular way of protecting property and managing assets in New Zealand. The number of trusts we have in New Zealand is unknown, but estimates put the figure between 300,000 and 500,000. The legislation governing NZ trusts has remained unchanged for decades as it has been predominantly governed by the Trustee Act 1956. … Read more
Is your business cyber safe?
Technology and change is prevalent across all areas, right through from the supply chain to the customer. Computers are no longer isolated assets; complex cloud based systems allow all areas of an organisation to be truly digital. Although this can have many benefits, an increased digital presence, combined with the expansion of mobile technology, is … Read more
How do we now treat feasibility expenditure?
A recent Supreme Court decision, Trustpower Limited v Commissioner of Inland Revenue (IRD), has drastically changed how New Zealand businesses should treat feasibility expenditure for tax purposes. Feasibility expenditure is a term used to refer to expenses incurred in the course of determining whether to acquire an asset; to some degree, such expenditure is incurred … Read more
Employee share schemes
Irrespective of the size of a business, one of the challenges for any business owner is to be able to attract and retain talented staff. One means to do so is an effective remuneration package that motivates staff in a way that aligns their performance with the owners’ business objectives. Not every individual is driven … Read more
IRD rulings
Over the past few years there has been a pronounced improvement in the manner in which Inland Revenue selects and conducts its investigations. There has been an increased focus on data analysis, comparisons to statistical norms, and use of external information such as land transfer data. As a result there is an increasing need to … Read more
Labour’s Housing Policy
The Labour party has recently released an overview of its new housing policy designed to tackle New Zealand’s housing “crisis”. Labour are of the view that property “speculators” are driving house prices out of reach of first home buyers and have proposed new measures to resolve the issue. There is currently a lack of detail … Read more
Winding Up a Company
Recently, there has been an increased level of sophistication on the part of Inland Revenue (IRD) when reviewing company windups. Important points to bear in mind when winding up a company are outlined below. Before applying to the Companies Office for removal from the companies register, a company should have discharged its liabilities to all … Read more
Witnessing History
Over the last few months we have witnessed history, with the majority vote in favour of Britain leaving the European Union (EU). This was a surprise to many, and sent shockwaves around the world. In the days following the vote, the value of the pound declined substantially, and this instability may continue into the future … Read more
Winter blues tips
With positive thoughts we experience pleasant and happy feelings. Unfortunately, in the midst of winter, it is easy to lose sight of our positive thoughts where the days are short, the temperature low and grey clouds surround us. However, it is important to make the effort to maintain a positive outlook on work, family and … Read more
