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Further ACC Levy Reductions

  On 7 December 2016, the Acting ACC Minister, the Hon Nathan Guy, confirmed the ACC levy rates for the 2017/18 and 2018/19 years. The Minister said that there will be reductions totalling $126.2m per annum to work and motor vehicle levies, while the earners’ levy will remain unchanged.   The announcement means that: the

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ACC Levies

Partnership income earned as a result of “active” (physical or administration) involvement is liable for ACC levies, which will be invoiced by ACC.  If your involvement in the partnership income is an administration only role we can change your classification to “administration”. If your share of this income is received in recognition of your capital

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The Perils of a PPOA

It is important for individuals to correctly determine their residency status for tax purposes, as a New Zealand tax resident is taxed on their ‘worldwide income’. A person is considered to be a New Zealand resident for tax purposes if they have been physically present in New Zealand for more than 183 days in any

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Importance of Good Record Keeping

A recent case Taxation Review Authority (TRA) decision has highlighted the importance of good record keeping. The taxpayer, an accountant, was accused by Inland Revenue (IRD) of using a company as a vehicle to create a tax advantage. He claimed to have sold his sole trade accountancy practice to his own company for $2m in

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Trust Reforms

Trusts are a popular way of protecting property and managing assets in New Zealand. The number of trusts we have in New Zealand is unknown, but estimates put the figure between 300,000 and 500,000. The legislation governing NZ trusts has remained unchanged for decades as it has been predominantly governed by the Trustee Act 1956.

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Provisional Tax Improvements

New legislation enacted in February substantially simplifies obligations under the provisional tax regime. Most taxpayers pay their provisional tax at three times through the course of their financial year, being the 28th day of the 5th, 9th and 13th months after their balance date. The ‘standard uplift’ method determines a person’s liability based on a

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From My Desk

Greetings After a wonderful summer for dairy farmers we now get a very wet autumn. The team at Hughson & Associates are all back from their breaks and working hard on the 2017 financials that flow in after 31 March. This edition contains an article relevant to our TRUST clients.  This New Act is a

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Snippets: Nov 2016 – Jan 2017

Farmhouse Expenses The IRD have long permitted a straightforward concession allowing a flat 25% deduction for farmhouse expenses, as well as 100% deductions for interest and rates. The concession is not legislated and dates back to the 1960s, when farm ownership and operating structures were generally less complicated than they are today. However, IRD recently

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Attracting & Retaining your Top Talent

As we come to the close of 2016, the last 10 months have seen many businesses across New Zealand face a variety of, sometimes overwhelming, but always unique challenges. Through this, the ability to engage and retain valuable employee’s remains a critical risk for all, not only for the financial impact; but also as it

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IRD Rulings

Over the past few years there has been a pronounced improvement in the manner in which Inland Revenue selects and conducts its investigations. There has been an increased focus on data analysis, comparisons to statistical norms, and use of external information such as land transfer data. As a result there is an increasing need to

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Employee Share Schemes

Irrespective of the size of a business, one of the challenges for any business owner is to be able to attract and retain talented staff. One means to do so is an effective remuneration package that motivates staff in a way that aligns their performance with the owners’ business objectives. Not every individual is driven

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