The loss offset (and subvention payment) mechanism allows a ‘profit’ company to reduce its taxable income by utilising the tax losses of a ‘loss company’. The mechanism is a great tool that is commonly used. Before a loss offset can be made, the following key requirements must be satisfied: The loss company must have maintained […]
Loss Offsets and Subventions Read More »
The Labour coalition made immediate changes when they were elected into government, starting with repealing National’s planned tax bracket changes. Labours new ‘mini-budget’ is intended to benefit low-income earners, middle-income families with children and lift children out of poverty. The package entails: Increasing the Family tax credit by between $575 to $1,400 per year. Increasing
Mini-budget – Families Package Read More »
When an asset, such as a bach or a boat, is used both privately and to generate income, prescriptive rules exist within the Income Tax Act that determine the extent to which a tax deduction is available. Expenses broadly fall into three categories: fully deductible, non-deductible and apportioned. An expense is fully deductible if it
Traddies have been under the watchful eye of Inland Revenue (IRD) for the last few years since being identified as a cash-dominated industry in 2012. A media campaign has recently been launched to warn tradespeople that doing ‘cash jobs’ may comprise tax evasion, and that every cash job leaves a trail (or lack of a
Voluntary Disclosures Read More »
Tax innovation With the persistent need for additional Government revenue it could be time to look to history for answers. In 1535, King Henry VIII of England introduced the first ‘Beard Tax’ on males growing facial hair. The effectiveness of the tax in England was questionable, with records at the time being somewhat ‘short’ on
Snippets: Aug – Oct 2017 Read More »
Budget 2017 presented a broad range of small yet smart changes that target working families and low income earners. From a tax perspective, the key changes are predominantly to the income tax thresholds, working for families’ package and the independent earner tax credit. All taxpayers will benefit from the tax cuts, and it is hoped
Inland Revenue (IRD) have recently released a new Taxation Bill and published the eighth discussion document in the Making Tax Simpler series, both of which aim to reduce the cost of tax compliance and administration for NZ businesses and individuals. Under the current PAYE system, it can be difficult for IRD to collect the correct
PAYE changes and tax simplification Read More »
The sale and purchase of residential property is an area of focus for IRD Investigators as a result of the ongoing investment in the Property Compliance Programme. A Taxation Review Authority (‘TRA’) case heard in May 2017, serves as a timely reminder for all property owners to remain aware of the tax implications that can
Proof of intention Read More »
Nordic Tax Records It’s often considered taboo to ask other people how much they earn. So what would you do if you could look up how much your colleagues, neighbours and friends make, all legally, online and for free? Well this is what happens in some Nordic countries! Norway has had an ‘open salary policy’
Snippets: May – July 2017 Read More »
Effective 01 April 2017, the Government announced that the adult minimum wage increased by $0.50 cents to $15.75 an hour.
Minimum Wage Increase Read More »