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. Between 2000 and 2010, the […]
39% Trust tax rate Read More »
Greetings, The government has finally decided that we are in recession. The people (Tax payers) knew this, way before Christmas and were starting to adjust their spending habits – less lattes, less haircuts (I have been saving on those since 1/1/2000). You can see the impact of this now in the cities as mortgage interest
From My Desk: May – July 2023 Read More »
Two changes have recently surfaced in relation to trusts and the disclosure of trust information. Firstly, the Tax Administration (Financial Statements—Domestic Trusts) Order 2022 was made on 7 March 2022. This Order sets minimum standards for financial statements prepared by trusts. The Order applies to income years ending on or after 31 March 2022 and
Changes to trust disclosures Read More »
In March 2022 Inland Revenue released a government discussion document that contains a proposal that represents a further erosion of the principle that New Zealand does not tax capital gains. Currently, if a person sells shares in a company and the shares were not purchased with the intention of resale (such as by a share
Taxation of capital Read More »
Despite significant technological and operational business changes, the rules regarding GST tax invoices have remained largely unchanged since GST was first introduced in 1986. However, new legislation was passed on 29 March 2022 that is intended to improve and modernise GST invoicing and record-keeping requirements. A long-standing requirement to be able to make a GST
Farewell to “tax invoices’’ Read More »
For those of you who prepare and file FBT returns on behalf of a GST-registered employer, you will be familiar with the GST on FBT adjustment that forms part of the FBT return. The adjustment itself is straight-forward and involves calculating GST on the gross taxable benefits that are subject to GST, and including this
Common error – claiming GST on FBT Read More »
The summer break is a time for reflection on the year that has been. For business owners, this break is an opportunity to evaluate their future strategy and consider whether it is time to exit, or conversely, grow by purchasing someone else’s business. Whether buying or selling, it is a demanding exercise. A business sale
Tax due diligence when buying or selling Read More »
After undergoing over a year of consultation, the purchase price allocation legislation is now in effect. At a high-level, the purpose of the legislation is to ensure vendors and purchasers allocate consistent prices to business assets for tax purposes when selling and buying assets. For a vendor, the prices allocated will determine the extent to
Purchase price allocation Read More »
DairyBase is a tool to help you to better understand your farm system and how it’s performing, by comparing key performance indicators and determining what is working well, and then identifying opportunities for improvement. With DairyBase you will better understand your farm’s performance, find & identify opportunities to drive profit, make confident and effective decisions, track
In addition to the tax loss carry-back scheme, the New Zealand Government has introduced a number of other tax changes to assist businesses and individuals to get through COVID-19. Currently, if an asset is purchased for less than $500 it does not need to be depreciated. The cost is immediately deductible in the year of
Other tax changes in response to Covid-19 Read More »