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DairyBase NZ

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

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Self-employed meals

  If an individual operates as a sole-trader, as opposed to trading through a company, it allows for a simplified structure with fewer formal set up tasks (and costs) and greater flexibility and control. However, differences can arise in how the income and expenditure of a sole trader is calculated, compared to a company. Tax

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Olympic pandemic

  The 2021 Olympics will be like no other. It is the first ever Olympics to have been postponed. Previously, two Olympics were cancelled during the two world wars, but never postponed. It is the first-time karate, surfing, climbing and skateboard have featured, and baseball and softball return after a 13-year absence. It is also

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Cryptocurrencies – Are they on your radar?

  Cryptocurrencies have been garnering worldwide attention recently, particularly with Bitcoin’s dramatic rise to over NZD$90,000 for a Bitcoin in April 2021, and its subsequent 50% crash through May and June. Other cryptocurrencies, deemed ‘altcoins’, have also seen similar price volatility. These coins adopt the same principles as bitcoin, with slight changes and tweaks to

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Paid parental leave for who?

  Earlier this month, the Government released Budget 2021. Included in the budget was a boost to all main benefits, including an increase to paid-parental leave. From 1 July 2021, eligible parents will be entitled to a maximum of $621.76 a week (before tax), an increase of 2.5% on the prior rate of $606.46. While

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The ‘ute’ – Kiwi icon or tax dodge

    Recently, there has been a large volume of media attention being directed to the ‘Ute’ and it has become a focal point of protest action against the Government. The Government announced the “Clean Car Discount” scheme in June, which from 1 July until 31 December 2021 will see purchasers of imported electric vehicles

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‘New builds’ discussion document

  Since the Government’s announcement in March, regarding the tax deductibility of interest on residential investment properties and the extension of the bright-line period to 10 years, investors have been waiting for more detail on the new rules. On 10 June 2021, Inland Revenue released a 143 page discussion document titled “Design of the interest

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From My Desk- August 2021

  Here we go again… Let’s hope that by the time you read this that we are back in level 2 & are able to see you clients again. Meanwhile we continue to work from home or at the offices behind closed doors, remaining available by email or phone. Still no word on the Fonterra

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Supply shortages

COVID-19 has fundamentally disrupted global trade to the point there are a number of product shortages starting to play out, and in some cases of some surprising items: The shipping containers themselves: With only two makers of shipping containers globally and containers being trapped in the congestion at ports, there is now a shortage of

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Fair market salary reminder

There is a general need for a business to pay associated employees a fair market salary for their personal service. Given the implementation of a 39% personal marginal income tax rate on income over $180,000 from 1 April 2021, Inland Revenue’s scrutiny of such salaries is expected to increase. This has been confirmed through Inland

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Business interruption due to Covid-19

The onset of the Covid-19 pandemic had an immediate impact on businesses nationwide. Lockdowns and the border closure have caused massive disruption. For many this was temporary, for some, permanent. Inland Revenue has released a draft Interpretation Statement “Income tax and GST – deductions for businesses disrupted by Covid-19 pandemic”. The statement sets out Inland

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Penalizing R&M

Classifying expenditure as either deductible repairs and maintenance (R&M) or non-deductible capital expenditure is not clear cut. It is a question of fact and no two situations are the same. But it is advantageous from a tax perspective to classify as much expenditure as possible as R&M, which gives rise to the risk of pushing

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