Taxation Planning

The 39 percent rate change

The top personal marginal tax rate increases to 39 percent on income over $180,000 with effect from 1 April 2021. Businesses should consider what the flow-on effects are and forward plan to ensure they are not caught off guard.

Reimbursing employee working from home costs

Here’s how you should be treating employee reimbursements for tax for those working from home this year

How to treat employee accommodation for tax purposes

The treatment of employee accommodation (and taxable allowances) can be confusing. We share some insights to clarify the tax obligations.

Election outcome and tax policies

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.

Healthy Homes costs deductions

We share IR guidance on the deductibility of costs to bring residential rentals up to new legislative standards.

FBT on vehicles during lockdown

You wouldn’t be blamed for assuming FBT wouldn’t apply to motor vehicles during the recent Level 4 lockdown period. Right?

Tax changes in response to Covid-19

In addition to the tax loss carry-back scheme, the New Zealand Government has introduced various tax changes to assist businesses and individuals to get through COVID-19.

How carry back of tax losses can help you through COVID-19

As part of the Government’s Covid-19 response, on 30 April 2020 legislation was passed under urgency that allows tax losses to be offset against income derived in a previous year, thereby enabling the taxpayer to obtain a refund comprising prior year income tax paid. This temporary tax loss carry-back scheme is available to most taxpayers, e.g. trusts, companies and individuals.

Tax relief packages for SMEs

The Government has announced (April 15) a further set of tax proposals to help businesses manage the impacts of COVID-19.  In summary:

Binding rulings for small businesses

Inland Revenue has recognised the system of binding rulings doesn’t work for small businesses because it’s too expensive.

Common Reporting Standard (CRS) explained

You might have been contacted by your bank to fill in a form enquiring about your CRS status. In simple terms, CRS stands for Common Reporting Standard.

Dire implications for late tax payments

If you pay your provisional tax one day late you come out of what is called the Safe Harbour scheme.

Tax changes worth noting

There have been several tax changes recently. Some of the important ones are listed here:

Wage subsidy is not part of sales

If you’ve received a wage subsidy, don’t treat it as being part of sales.

Can you steal GST?

Whether a price includes GST or not is important to know for the price of a product. In the case between New Zealand Police and Genesis Pure, ‘GST’ became the difference between a maximum penalty of seven years in jail, or one.

Tax: a brief history

Tax is often quoted as being unfair. However, a review of taxes from historic periods can highlight how ‘sensible’ our current system is.

GST on loan repayments

GST is deducted on goods and services that are acquired for use in making taxable supplies. A recent High Court decision is a timely reminder that understanding the legal form of a transaction is important for applying the correct GST treatment.

Global tax – paying a fair share

A series of legislative changes have been implemented over the past few years as part of the Government’s focus on ensuring multi-national corporations pay their fair share of tax.

Changes to donation tax credits

The Income Tax Act 2007 requires a donation to be a “…gift of money of $5 or more…”, but what does this phrase mean? Confusion arises because monetary gifts can take various forms. A dispute on the issue has been making its way through the Courts.

The benefits of creating a holding company

Looking to protect the long-term future of your business and investments? We’ll help you create a new holding company and establish a robust group structure that safeguards your profits.

Court case – tax avoidance arrangement

While all taxpayers are entitled to arrange their affairs in a tax efficient manner, tax should not be the main motive for a transaction with no commercial substance. Two recent (connected) cases at the Taxation Review Authority demonstrate why.

US tax rules - ‘only in America!’

You may think New Zealand’s tax rules are difficult to follow. The following unusual yet permitted deductions in the US may change your mind.

Residential bright-line – what’s the ‘intention’?

The Income Tax Act 2007 has long contained provisions to tax the sale of property (or other assets) acquired with the intention of disposal. However, ‘intention’ is a subjective concept and has been difficult for Inland Revenue to police. Hence, the bright-line test.

GST on land - Holdaway v Ellwood

It is common for disagreements to arise between taxpayers and Inland Revenue on the GST treatment of land transactions, but less common for these disputes to arise between a vendor and purchaser.

Tax Working Group – no major changes for NZ taxes

The Tax Working Group (TWG) released its long-awaited Final Report (the Report) on 21 February 2019, following a 13-month review during which the Group received over 7,000 public submissions. 

Turn rental loss into profit and save tax

As you will probably know, 31 March 2019 (or equivalent balance date) is the last year you will be able to offset losses on rental properties against other income.

Tax Working Group Interim Report

The Labour Government established the Tax Working Group (the Group) in January 2018 to review the existing New Zealand tax framework and to provide recommendations for improvements to the fairness, balance and structure of the tax system over the next 10 years.