In New Zealand, a marginal tax rate system is used to tax an individual’s income, i.e. the tax rate increases as one’s income increases. As at today, the marginal tax rates are as follows: Taxable income bracket Applicable tax rate $0 to $14,000 10.5% $14,001 to $48,000 17.5% $48,001 to $70,000 30% $70,001 to $180,000 […]
Snippets: Marginal tax rates Read More »
Private schools will typically be registered as a charity. As such, parents will sometimes treat payments to the school as a charitable donation for tax purposes. Inland Revenue are making it clear on its interpretation on this subject through the release in October 2022 of QB 22/09 – Income Tax – Payments made by parents
Snippets: Private school donations Read More »
For example, where parents dispose of residential land to their child within the bright-line period, the sale will be taxable to the parents based on the market value of the land, regardless of how much the child paid for it. Similarly, where a person wholly-owns land and wishes to become co-owners with their partner, a
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On 29 August 2022 Inland Revenue released a 49-page report: “Fringe benefit tax: regulatory stewardship review”, which reports the summary, findings and recommendations of a review of New Zealand’s current Fringe Benefit Tax (FBT) regime – a regime whose design and operation has not been subject to a full review for nearly 20 years. The
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
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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 the New Zealand Police and Genesis Pure, ‘GST’ became the difference between a maximum penalty of seven years in jail, or one. Mr Pure was charged with stealing an iPhone
Snippets: May – Jul 2020 Read More »
As New Zealand moves down the COVID-19 alert levels businesses face a long transition period from the unknown to the ‘new normal’. Social distancing, strict health and safety guidelines, restricted international and regional travel are amongst numerous practises that will likely continue to apply for as long as COVID-19 remains a global threat. This may
Emerging from Covid-19 Read More »
The land taxing provisions deem certain sales of land to be subject to income tax, subject to a limited number of exceptions. One such is exception is for ‘business premises’. However, the circumstances in which it applies can be a grey area. Hence, two recent ‘Questions We’ve Been Asked’ (QWBA) issued by Inland Revenue (IRD)
Property sales – business premises exclusion Read More »
Introducing our new staff… Sarah McIntyre I am a Chartered Accountant with over 10 years experience working in Public Practice accounting having previously worked for Tandem Group and then Baker Tilly Staples Rodway Taranaki. I also have a Bachelor of Commerce and Administration majoring in Accounting, having studied at Victoria University in Wellington. During my
New provisional taxpayers beware Changes to the provisional tax regime, effective from the 2018 tax year, have generally been well received by taxpayers. Prior to the change, Inland Revenue charged interest from each provisional tax date if a taxpayer’s actual liability exceeded their ‘uplifted’ amount from prior year(s). This effectively meant taxpayers were required to
Snippets: Aug – Oct 2019 Read More »