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Employee Accommodation
The treatment of employee accommodation (and taxable allowances) can be confusing. In 2015 the rules around employer-provided accommodation were subject to a reform, with the changes intended to provide greater clarity and cohesion for employers to understand their tax obligations. Previously, a net benefit approach was acceptable, where accommodation provided to an employee was not … Read more
Employee Benefits for Millennials
Say what you want about millennials, there is no denying their presence in the workforce. According to Statistics New Zealand, millennials currently represent the largest age group in the workforce. Millennials are also attributed with having become problematic to attract, develop and retain – perhaps in part due to their unique preferences when it comes … Read more
New Trustee Disclosure Obligations
In 2013 the law commission was asked to review the Trustees Act 1956 and NZ Trust law generally. Following this initial review, nearly eight years later, the long-awaited “Trusts Act 2019” will finally come into effect on 31 January 2021, replacing the entire 1956 Act. One of the most significant changes in the new Act … Read more
Election Outcome and Tax Policies
After Labour’s victory in the 2020 General Election, their proposed tax policy changes are now likely to be implemented. Labour has ruled out a capital gains tax and an increase in fuel taxes but is prepared to introduce a Digital Services Tax to target multinational digital businesses who have taken advantage of tax structuring options. … Read more
What is revenue?
“Revenue means the total amount of money a business has earned from its normal business activities, before expenses are deducted” (Work & Income, July 2020). This core definition has been applied by thousands of businesses to apply for the Government’s wage subsidy scheme that was implemented due to the COVID-19 pandemic. Whether a 30 percent … Read more
Purchase price allocations
Currently, if you enter into a sale and purchase agreement for the sale of business assets, there is no standard practice for how the price should be allocated to the assets. For example, a single price may be agreed for all assets, or the agreed price might be allocated on a line by line basis … Read more
Deductibility of Healthy Homes costs
If you are an owner of a residential property, you will be familiar with the Healthy Homes Standards that were introduced on 1 July 2019. The standards set out the minimum requirements all landlords are required to comply with. Examples of the mandatory requirements include fixed heaters in the main living room, smoke alarms, ceiling … Read more
Take a break
In the months since the peak of COVID-19, the stringent restrictions have been relaxed and the majority of us have returned to a ‘new normal’. What this looks like from business to business is likely to be quite different, with some returning to the office full-time and others continuing to work remotely. Whichever the case, … Read more
Other tax changes in response to Covid-19
In addition to the tax loss carry-back scheme, the New Zealand Government has introduced a number of other tax changes to assist businesses and individuals to get through COVID-19. Currently, if an asset is purchased for less than $500 it does not need to be depreciated. The cost is immediately deductible in the year of … Read more
Carry back of tax losses
Ordinarily, if a taxpayer incurs a tax loss within a particular year, they are able to carry that loss forward and offset it against income derived in a future year, thereby reducing the taxpayer’s future tax payable. As part of the Government’s Covid-19 response, on 30 April 2020 legislation was passed under urgency which allows … Read more
