As businesses expand, a common decision is whether to create new companies to accommodate new ventures, risks, products and/or acquisitions. A well-designed group structure enables a ‘parent’ company to create distinct entities that operate independently.

For some, the increase in the trust tax rate from 33% to 39% has prompted them to ask the question – should we wind up our trust?

A common complaint made by employers is that the amount of time it takes to meet their FBT obligations is disproportionate to the amount of tax it actually generates. This frustration is arguably borne out in the number of mistakes that are often made when calculating the amount of FBT payable.

Over the last 18 months there have been a number of businesses fall over – which in and of itself has not been surprising given the recent economic climate. However, one element that serves as a warning for us all is the flow on effect of those failures. Not just in a tangible sense, where suppliers or ‘subbies’ are left out of pocket and can’t survive, but where acquaintance businesses can be tarred with the same brush.

If a company sells a capital asset (e.g. commercial land) and derives a non-taxable capital gain, it’s reasonable to expect the shareholders to want access to the cash. However, the problem often arises that in order for a capital gain to be distributed tax-free, the company needs to be wound up. This is a result of the fact that if a capital gain is distributed in the absence of a wind-up, the distribution comprises a taxable dividend.

The depreciation rate for non-residential buildings has been reduced to 0%, effective from the 2024 / 25 income year. However, commercial fit-out remains depreciable. This makes the distinction between the two important because it is the difference between not being able to deduct any depreciation at all versus being able to claim a good proportion of a building’s cost as ‘fit-out’.

Nestled in the heart of Johnsonville, Northern Wellington, Animal Medical Centre has been a haven for pets and their owners for 19 years. Proudly independently owned, this veterinary practice embodies the belief that "pets are a beloved part of our lives."

Alix Dalzell’s career story provides reassurance to any high school student who does not have an answer when someone asks, ‘what do you want to do when you grow up?’

New Zealand's trade relationship with the Association of Southeast Asian Nations (ASEAN) has been significantly bolstered by the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA). Since its implementation in 2010, AANZFTA has paved the way for enhanced economic cooperation and mutual growth between New Zealand and ASEAN member states.

For the first time since 2010, personal tax rate thresholds will change from 31 July 2024. The change was announced as part of the 2024 budget. When personal tax thresholds are not regularly adjusted to take into account inflation or wage growth, individuals end up paying a higher percentage of their income in taxes over time. As such, adjusting these thresholds arguably reverses past tax increases.

It is important to regularly ask whether you are providing the products that your customers want and whether there are any new products that you could provide to ensure you are evolving with changing times as you look for the next income stream.

What was a temporary tax concession relating to donated trading stock has now become a permanent one thanks to the enactment of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 on 1 April 2024.

For businesses that trade through a company, circumstances might arise in which the shareholders consider selling a minority stake in the company to a key employee or group of employees. This could be to ensure that key talent is ‘locked in’ for the long term, as a means of succession if the existing shareholders are looking to wind-down or simply as a means to link effort to reward.

BAU is a phrase that is used to describe “business as usual”. It is a good barometer of whether anything strange or unusual has occurred or whether things have been BAU.

After a relatively quiet few years through the Covid pandemic, Inland Revenue’s (IR) audit activity has slowly started to increase over the past few years.

When you think of a logistics company, your mind might wander to trucks, warehouses, and a lot of paperwork. But Kaibosh isn’t your ordinary logistics operation.

With the new Government now firmly settled in, legislation has been passed which reverses the interest deductibility limitation rules that were introduced by the previous government in 2021.

A recent law change has been passed by Parliament impacting charity deregistration tax rules.

When a charity is removed from the Charities Register, they may need to pay de-registration tax.

Artificial intelligence (AI) is the new buzzword at the moment, with business leaders touting its importance and the significant impact it will have on the way we conduct business. The reality is that AI has been around for a while, but in the past few years has taken a great leap in terms of its usefulness and accessibility for the general public.

Jackson Russell was pleased to host a free short webinar to help you understand how the new Act will affect incorporated societies and what needs to be done to re-register by 5 April 2026.

Travelling the world or adventure might not be the first things that come to mind when choosing a career in professional services. However, for Jonathan Naysmith, Assistant Audit Manager at Moore Markhams, it was front of mind when he started looking for the right start to his audit career.

We recently caught up with our client Vinnie Callister, the founder of event waste management company Waste Wizards, who has recently embarked on a new venture with the launch of his charity Make Waste History. This initiative aims to address the various costs associated with waste in New Zealand, beyond just the financial aspect.

Along with changes to the interest deductibility rules, legislation has been passed which repeals the current bright-line tests, replacing them with a new (or old) 2-year test.

All too often we get into a routine without stepping back and considering why we are doing things. The same goes with our accounting systems and processes. Your finance team is probably busy keeping on top of their day-to-day workloads but has consideration been given to how productivity can be improved through the use of readily available software?

In March 2023, legislation in relation to the platform economy was passed, affecting the GST treatment of services made through an electronic marketplace from 1 April 2024. We saw something similar back in 2019, where the GST rules on imported goods were amended to treat operators of online marketplaces as liable for returning GST, as opposed to individual sellers. Now the rules are being expanded to include listed services, such as accommodation, ride-sharing services and food delivery services.

The New Zealand 2024 Budget was handed down on 30 May at 2pm.

The Budget for 2024 demonstrates fiscal responsibility, provides long-awaited tax relief for 83% of New Zealanders, and allocates funds towards enhancing frontline public services for improved outcomes.

The main change is that the bright-line period will now decrease from 10 years for existing properties or 5 years for a new build, to 2 years which applies to disposals on or after the 1 July. Rollover relief rules applying to bright-line transfers of residential land have also had a complete makeover, with the new criteria applying from 1 July.

The Working for Families Tax Credit (WFFTC) is a notoriously complex scheme when it comes to determining eligibility and quantifying entitlement. This leads you to wonder how well the scheme is policed by Inland Revenue, and whether fraud is able to ‘fly under the radar’.

The concept of what is a “dividend” is very broad and starts with the default proposition that any transfer of value from a company to a shareholder is a dividend. That concept includes the simple scenario of an interest free loan to a shareholder or a person associated to a shareholder; which can also include loans between companies.

Stevie Mark’s journey with Moore Markhams is a testament to the flexibility of the network, giving individuals the opportunity to work abroad, whilst pursuing their travel dreams.

Having worked in accounting for 15 years and for the largest privately owned travel group in New Zealand, Scott returned to public practice accounting in 2020. “I missed the people side of public practice accounting, being able to help clients directly, having a real impact on their businesses and their lives.

Meet Lucan Bartlett, our recently promoted Associate. Lucan’s journey to success in the field of accounting is nothing short of inspiring.

On the eve of his promotion from Associate Partner to Audit partner, Stuart Hansen reflects of the importance of Shared Common Humanity and Business Acumen to thrive in professional services.
 

With several payroll changes coming 1st April 2024, it’s important to understand the changes and how they will affect your business.

The Government has chosen to delay the phasing out of the interest limitation rule for residential property investors, as outlined in the coalition agreement between National and Act parties.

The Hon Nicola Willis, Minister of Finance, has recently unveiled proposed amendments to tax legislation aimed at rectifying the over-taxation of low-earning trusts.

The story of Freeze Dried Foods (FDF) stands out as a testament to hard work, dedication, and strategic partnerships.

As increasing interest rates have bitten and with industry sectors such as retail and construction not performing as strongly, some businesses are struggling. As the end of the financial year approaches, now is a good time to assess whether any of your accounts receivable need to be written off as ‘bad’.

For 99.9% of the time, New Zealand companies are incorporated to operate a business and derive income.

After the introduction of the Trust Disclosure rules in March 2022, in November 2023 Inland Revenue released a high-level summary (in the form of a 40-page report) of insights from the first year of reporting. While tax advisors and clients alike may have begrudgingly completed the disclosures initially, the statistics may prove to be interesting.

The Laura Fergusson Trust is an independent charity providing residential, rehabilitation, respite and recreational services for adults with physical or neurological impairments.

In the dynamic landscape of the pharmaceutical manufacturing industry, New Wayz Consulting has emerged as a trusted boutique consultancy.

When the top personal tax rate for individuals increased to 39% from 1 April 2021, it was not surprising to see an increase in the number and quantum of dividends declared by companies (owned by individuals) in the lead up to the change.

Given the necessity of providing fast relief, the wage subsidy scheme provided during COVID in NZ was largely based on trust. Today, MSD operates a Wage Subsidy Integrity and Fraud Programme aimed at ensuring the integrity of the payments and who received them.

For a standard 12-month year, provisional tax is due in three instalments. The instalments generally fall on the 28^th day of the fifth, ninth and thirteenth months. However, this is varied in certain situations.

With the recent inflation driven surge in the cost of living, apparent increase in crime and seemingly constant complaints about the education and health systems, some New Zealanders are considering packing up shop and moving across the ditch to Australia.

The Business Payment Practices Act 2023 (‘the Act’) was enacted on 26 July 2023. It will require certain entities (‘reporting entities’) to publicly disclose specific information about their payment practices.

Succession planning is an often underestimated yet critical component of a legal firm's long-term success. While legal professionals are primarily focused on providing exceptional legal services and growing their client base, it is equally essential to have a well-crafted succession plan in place.

As Chartered Accountants, we are often tasked with the responsibility of evaluating and appraising various businesses and assets.

We are pleased to announce Sam Bassett has taken over as Chair of Moore Markhams New Zealand.

As a manufacturing or product-based business, efficient stock management is a big part of running a smooth operation. But the way we manage stock and inventory has changed radically in the past decade, in no small part due to the evolution of inventory technology.

Why is cashflow so central to good financial management? Here's our plain English guide.

Do you dream about starting your own business? And, can anyone become an entrepreneur? Let's take a look at what makes a good entrepreneur.

Your profit and loss statement (P&L) helps you understand your business performance and profitability over time. It’s sometimes called an Income statement and its main purpose is to list income and expenditure.

In April 2021 the top marginal tax rate was lifted from 33% to 39% for individuals with taxable income over $180,000. More recently the Government has announced that the tax rate for trusts will also go up to 39% from April 2024, and both Labour and National plan to go ahead with this change. This 39% tax rate will apply to all taxable income of the trust.

In today's dynamic business landscape, risk management and good governance have become paramount for organisations striving for long-term success and sustainability.

Andrew Steel, an audit partner at Moore Markhams in Wellington, emphasises the tremendous importance of not-for-profit organisations in society.

Meet Árbol, a locally owned and operated construction company that is making waves in the industry with their commitment to sustainability

On 18 May 2023, the government introduced the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill. The Bill includes draft legislation that will see the trust tax rate increase from 33% to 39% from 1 April 2024, thereby aligning it with the top personal marginal tax rate.

A standard data policing check completed by Inland Revenue is to review taxpayer GST filing patterns to identify taxpayers that are GST registered, but perhaps shouldn’t be.

The leaky homes crisis represents one of the most severe problems faced by New Zealand’s property sector and continues to cause stress and anxiety for those affected. Adding to the uncertainty for rental property owners has been the question of whether repair costs are immediately deductible as ’repairs and maintenance’ (R&M).

Given that either Labour or National are likely to enter into coalition agreements of some form with the Green Party and Act, respectively, and the tax policies of the two main parties are more ‘vanilla’, it is worth reviewing the tax policies of the two minor parties as this is where unexpected change may come from.

The buoyant covid subsidy funded days are behind us, New Zealand has entered a ‘technical’ recession. This was reinforced by the recent announcement that New Zealand’s corporate tax paid was almost 11% down in the 11 months to May relative to Government expectations.

In today's fast-paced and competitive business world, it is crucial to recognise that behind every successful organisation are its dedicated and talented employees.

Continuous development is essential in the finance and accounting world to stay credible and excel in the profession. At Moore Markhams, we prioritise ongoing learning to navigate regulatory changes, enhance technical competence, nurture industry expertise, foster innovation, boost credibility and trust, and attract top talent. By investing in our staff's growth and staying ahead of the curve, we solidify our position as a trusted partner in our clients' financial journey.

Mid-market M&A remains strong despite economic volatility