Category: Tax


That one’s now in the bag. What happens when the rubber hits the road?

After an election campaign where millions of dollars of funds were promised by the various parties, the rubber will soon be hitting the road to increase our debt and to deliver on these promises. So what does the weekend’s election results mean for business? Clearly with the Labour party majority, they no longer require other […]

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Top tax rate change – business considerations

With the election less than two weeks away, the business community is discussing the various parties’ policies and considering the potential impact on their business. Of particular interest is the Labour Party’s proposal to reintroduce a top personal tax rate of 39%. With taxpayers looking to maintain tax efficiencies, we expect the IRD will closely […]

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COVID-19 Resurgence Wage Subsidy

Yesterday the Government announced a 2-week COVID-19 Resurgence Wage Subsidy payment that will be available for employers, the self-employed, and independent contractors, who are financially impacted by the resurgence of COVID-19 and changes to Alert Levels. The resurgence wage subsidy is a nationwide wage subsidy which covers the period Auckland is at Alert Level 3 […]

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Australia dual residency risk

Recent changes in Australia could mean a New Zealand business may be deemed to be tax resident in both Australia and New Zealand, even if the business does not trade in Australia. Being dual resident can impact on the New Zealand business in a number of ways, including needing to determine the primary place of […]

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Trust Health check – is your trust still fit for purpose?

Due to changes being introduced by the new Trusts Act it will be prudent to undertake a health check on your Trust this year. Many trusts have been set up for the purposes of achieving asset protection, estate planning or structuring efficiencies, and those purposes are more than likely still valid today. The new Trusts […]

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Window of opportunity for Healthy Home improvements

COVID-19 has had a massive impact worldwide and the New Zealand government has responded by making a number of short-term changes to the income tax rules to encourage growth in the economy. One of the changes is a temporary increase in the low-value asset threshold from $500 to $5,000 through to 16 March 2021, with […]

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SME Relief Package

Yesterday, the Minister of Finance announced a package of new measures to provide relief for SME businesses impacted by Covid-19 in addition to those measures already released. The new measures include a tax loss carry-back scheme, introduction of the ‘same business test’ for tax loss carry forward, ability of IR to modify tax timeframes and […]

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SHOULD YOU USE TAX POOLING?

Yes, we certainly think so. It is Inland Revenue approved and has been around since 2003. In a nutshell, instead of taxpayers paying their provisional tax payment to the Inland Revenue, they deposit their provisional tax payment with a tax pooling intermediary who then deposits that payment into a tax pooling account with Inland Revenue. […]

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Paying IRD by cheque – The screws are tightened

For some time Inland Revenue and other Government organisations have been pondering changing how their customers can make payment.  Specifically, whether you will be able to make payment using a cheque.  There has been some reluctance for Government departments to be seen as the “first cab off the rank” in proceeding with this change.  Recently however Kiwibank has announced it will be going cheque free from 28 February […]

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Was your tax payment received on time?

Technology has seen more and more of us making our tax payments electronically, which Inland Revenue actively encourages. It is therefore timely to review when Inland Revenue accepts payments as having been received on time. NEW ZEALAND ELECTRONIC PAYMENT will be received on time when it has been electronically paid or direct credited into an Inland […]

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Residential Rental Loss Ring-Fencing

Not only have residential investors been hit with the extended 5-year bright-line test, the new loss ring-fencing rules will mean many residential rental property owners may struggle to cashflow the costs of owning their rental property. Legislation was passed in mid-2019 which ring-fences residential rental losses from the beginning of the 2020 income year. A […]

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