Welcome 2025! The ‘Survive til 25’ slogan had us all anticipating a grand recovery this year. To date it’s still very tough out here. Costs are still high and interest rates drops have still got a way to glow through. On the plus side we might get some rain this week and ease the water […]
From my desk: Feb – April 2025 Read More »
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. A good example is
Snippets; FBT and home to work travel Read More »
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? Rather than looking at the purpose of having a trust with a narrow tax lens, it may be of benefit to consider your circumstances more broadly and ask
Snippets: Trusts – The big picture Read More »
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
Protect your reputation Read More »
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
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. This approach has several benefits – it provides flexibility as it allows control and visibility over each entity’s direction, policies,
Amalgamation could be the solution Read More »
Season’s Greetings, Please call in if you are passing and try this year’s Christmas cake. Fonterra has produced a record result for our Dairy clients with an expected $10 plus daily payout for the 2024/2025 season. This along with the falling interest rates will provide challenges when it comes to income tax planning. Please book
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
The depreciable asset Read More »
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. There are plenty of examples of new products meeting an unexpected demand
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
Changes in marginal tax thresholds Read More »