Latest News
Government addresses housing affordability
On the 23rd March 2021 the Government announced that it would make a number of changes to the taxation of residential property to address housing affordability. Legislation has been enacted implementing some of the announced changes, whilst the balance are to be consulted upon before further legislation is drafted. Legislated changes – The bright-line test
From My Desk- May 2021
Good morning, The rain that has been forecast is yet to materialize. Taranaki, whilst not as dry as other areas of NZ we certainly need some rain. We have started the 2021 tax filing season with a ‘hiss and a roar’ with work flooding into the office. Our client managers have begun processing the work
Pink Collar Crimes
We have likely all heard about white collar crimes, where financially motivated nonviolent crimes such as embezzlement are committed by high profile business people. However, pink collar crimes, referring to typically female office workers in low-to mid-level positions who steal money from their employers, have been on the increase. One of the largest instances was
COVID support packages
While we have enjoyed relative freedom in New Zealand, the Government has continued to work on Covid-19 support packages. The COVID-19 Leave Support Scheme allows those who have been told to self-isolate, to receive two weeks income if they are unable to work from home. In addition to this scheme, from mid-February 2021 a Short-Term
Is the grass greener over the ditch?
Australia has recently released its 2020-21 Federal Budget where they plan to combat the effect of Covid-19 by investing in infrastructure, job creation, asset write offs and personal tax cuts. Meanwhile in New Zealand, Labour continues their plan to keep New Zealand moving by investing in people, jobs, small businesses, infrastructure and global trade. Australia’s
GST on the family farmhouse
On 26 June, Inland Revenue (IRD) released Interpretation Statement 20/05. The statement describes how GST applies to the sale of a dwelling that is included within a wider supply of land. A common example that the statement applies to is the sale of a farm that comprises both farmland and a farmhouse. The generic GST
Purchase price allocations
Currently, if you enter into a sale and purchase agreement for the sale of business assets, there is no standard practice for how the price should be allocated to the assets. For example, a single price may be agreed for all assets, or the agreed price might be allocated on a line by line basis
Deductibility of Healthy Homes Costs
If you are an owner of a residential property, you will be familiar with the Healthy Homes Standards that were introduced on 1 July 2019. The standards set out the minimum requirements all landlords are required to comply with. Examples of the mandatory requirements include fixed heaters in the main living room, smoke alarms, ceiling
Employee Accommodation
The treatment of employee accommodation (and taxable allowances) can be confusing. In 2015 the rules around employer-provided accommodation were subject to a reform, with the changes intended to provide greater clarity and cohesion for employers to understand their tax obligations. Previously, a net benefit approach was acceptable, where accommodation provided to an employee was not
Employee benefits for millennials
Say what you want about millennials, there is no denying their presence in the workforce. According to Statistics New Zealand, millennials currently represent the largest age group in the workforce. Millennials are also attributed with having become problematic to attract, develop and retain – perhaps in part due to their unique preferences when it comes
New trustee disclosure obligations
In 2013 the law commission was asked to review the Trustees Act 1956 and NZ Trust law generally. Following this initial review, nearly eight years later, the long-awaited “Trusts Act 2019” will finally come into effect on 31 January 2021, replacing the entire 1956 Act. One of the most significant changes in the new Act
Directors’ duties
Company directors have a duty under the Companies Act 1993 to not trade recklessly or take on obligations that their business cannot perform. Balancing the continued survival of a company versus their obligation against reckless trading has been a key feature of the Covid-19 economic environment. Recognising that the economic impact of Covid-19 placed some
