On 8 December 2016, the Minister of Revenue, the Hon Michael Woodhouse, released the discussion document, “Making tax simpler — proposals for modernising the Tax Administration Act”. The document contains detailed proposals developed following the first round of consultation in November 2015. In November 2015, the Government released the discussion document, “Making Tax Simpler: Towards […]
Further TAA Consultation Announced Read More »
The Student Loan Scheme (Repayment Threshold) Regulations 2016 came into force on 1 April 2017 and increased the annual repayment threshold for the purposes of the Student Loan Scheme Act 2011 from $19,084 to $19,136 for the tax year commencing on 1 April 2017 and subsequent tax years.
Student Loan Annual Repayment Threshold Increased Read More »
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
The Perils of a PPOA Read More »
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
Provisional Tax Improvements Read More »
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
Employee Share Schemes Read More »
In May 2016, the Government introduced the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Bill (the Bill). Some of the key changes proposed in the Bill are outlined below. Tainted capital gains Capital gains derived by a company from the sale of a capital asset are able to be distributed tax
A self-proclaimed tax agent has been found by the Taxation Review Authority (TRA) to have taken an unacceptable tax position and demonstrated a high level of disregard for the consequences of claiming GST refunds over a two and a half year period. The taxpayer claimed a GST refund for five consecutive six month periods from
Slammed for gross carelessness Read More »
The compulsory zero-rating (CZR) of land rules have applied since 1 April 2011. The rules were introduced to combat a pattern of transactions where Inland Revenue (IRD) was paying GST refunds to land purchasers, but there was no corresponding GST returned by the vendor. Although simple in principle, mistakes are being made. To recap, the
Compulsory zero-rating of land Read More »
The Government has recently announced a package of proposed tax changes that intend to reduce compliance costs and make tax simpler for businesses. The package is part of the Inland Revenue’s big picture ‘Making Tax Simpler’ initiative that aims to modernise and simplify the tax system. While the proposals will generally apply to all businesses,
Changes to how SMEs pay tax Read More »
In the past, an IRD audit could be commenced for no other reason than the business had not been audited in recent years. Audits would start with the stereotypical interview comprising a series of broad questions that may or may not apply to the business, before the investigator would commence trawling through invoices looking to
Inland Revenue Scrutiny Read More »