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Changes to how SMEs pay tax
The Government has recently announced a package of proposed tax changes that intend to reduce compliance costs and make tax simpler for businesses. The package is part of the Inland Revenue’s big picture ‘Making Tax Simpler’ initiative that aims to modernise and simplify the tax system. While the proposals will generally apply to all businesses, … Read more
Slammed for Gross Carelessness
A self-proclaimed tax agent has been found by the Taxation Review Authority (TRA) to have taken an unacceptable tax position and demonstrated a high level of disregard for the consequences of claiming GST refunds over a two and a half year period. The taxpayer claimed a GST refund for five consecutive six month periods from … Read more
Compulsory Zero-Rating Of Land
The compulsory zero-rating (CZR) of land rules have applied since 1 April 2011. The rules were introduced to combat a pattern of transactions where Inland Revenue (IRD) was paying GST refunds to land purchasers, but there was no corresponding GST returned by the vendor. Although simple in principle, mistakes are being made. To recap, the … Read more
Changes To IRD Admin System
The manner in which we interact with Inland Revenue (IRD) is likely to change dramatically over the next two years as the upgrade of IRD’s IT system and associated legislation comes on-line. IRD’s broad objective is to reduce the amount of time and cost it and private business spends on tax administration by modernising its … Read more
Employer Provided Car Parks
Employers are required to pay FBT on non-cash benefits provided to staff. However, like most taxes, there are exemptions. It is important to be aware of the exemptions to ensure FBT is not overpaid. One such exemption provides that benefits (other than travel, accommodation or clothing) provided and used on the employer’s premises will not … Read more
GST On Foreign Supplies
Imposing Goods and Services Tax (GST) on the digital economy has been a hot topic this year as New Zealand retailers push for equal GST treatment between local and foreign suppliers. At present, foreign providers of cross-border services and intangibles (including music, e-books, videos and software purchased from offshore websites) do not have to pay … Read more
Health & Safety Reform
Each year on average, 75 people die on the job and 1 in 10 people are injured at work. With statistics this high, it’s not surprising the Government is reforming New Zealand’s health and safety landscape. A new Health and Safety Reform Bill (the Bill) is currently before Parliament and is expected to pass later … Read more
Modernising New Zealand’s Tax System
The Government has released two discussion papers to engage in public consultation on options for simplifying and modernising New Zealand’s tax system. The documents introduce taxpayers to the general direction the Government intends to take to improve administration of the tax system. Basically, the Government wants to simplify tax for individuals and businesses by reducing … Read more
Tax and Expenditure
The “general permission” under the Income Tax Act broadly allows expenditure to be deductible if it is: incurred in deriving assessable income, or incurred in the course of carrying on a business for the purpose of deriving assessable income. A recent Taxation Review Authority (TRA) case provides a strong reminder to us of the importance … Read more
Is It Time To Review Your Finance Function?
To be successful, a business needs to strive for profitability and growth. An important element of this is the need to regularly review internal processes and functions. The finance function should be included in that process. The finance function of any business needs to encapsulate the right tools, systems and processes to provide management with … Read more
