Latest News
An introduction to the metaverse
No physical interaction, no leaving your home, talking to people over the internet – a COVID nightmare, or the future of our society? The metaverse is a topic that has gained a lot of traction recently, particularly with Facebook’s rebranding to ‘Meta’ and its announcement that it will now be especially focused on creating its
What is the new normal?
As Covid restrictions at home and abroad start to ease, a feeling of normality begins to surface; gone are the mandates, the scanning in and selected compulsory mask wearing. Life starts to feel good again, as if the last two years were just a fever dream. And yet, nothing is the same. During awkward silences
A charitable world
There are over 28,000 registered charities in New Zealand. To register, the organisation must show that it has a charitable purpose; to relieve poverty, advance education, advance religion or be beneficial to the community. But some examples make you wonder. The ‘Church of the Flying Spaghetti Monster’, is an organisation that is legally recognised as
Covid-related costs
On 30 March 2022 the IRD released an interpretation statement (IS 22/01) regarding the deductibility of costs incurred due to Covid-19. It addresses the uncertainty around the deductibility of costs incurred as a result of the pandemic. Employee-related costs incurred due to Covid-19 include: relocating employees, retaining teams in New Zealand, incentive payments, provision of
Changes to trust disclosures
Two changes have recently surfaced in relation to trusts and the disclosure of trust information. Firstly, the Tax Administration (Financial Statements—Domestic Trusts) Order 2022 was made on 7 March 2022. This Order sets minimum standards for financial statements prepared by trusts. The Order applies to income years ending on or after 31 March 2022 and
Is it a ‘New Build’?
On 30 March 2022, the Taxation (Annual Rates for 2021-22, GST and Remedial Matters) Act 2022 received Royal assent. Its passing into law brings with it the extension of the residential bright line period from 5 to 10 years and denial of interest deductibility for residential investment properties. The legislation itself is complex and difficult
Taxation of capital
In March 2022 Inland Revenue released a government discussion document that contains a proposal that represents a further erosion of the principle that New Zealand does not tax capital gains. Currently, if a person sells shares in a company and the shares were not purchased with the intention of resale (such as by a share
Farewell to “tax invoices’’
Despite significant technological and operational business changes, the rules regarding GST tax invoices have remained largely unchanged since GST was first introduced in 1986. However, new legislation was passed on 29 March 2022 that is intended to improve and modernise GST invoicing and record-keeping requirements. A long-standing requirement to be able to make a GST
From my desk – May 2022
Since our last chat I have had Covid and spent a week trying to work from home. I still cannot make sense of our Governments Covid statistics??? Great news from Fonterra for the coming dairy season – with a midpoint forecast of $9; meaning an opening payout of $5.40/KGmS. This is fantastic news for all
Farewell, from Brenda
Brenda Simpson had her final day with us on Friday 11th February 2022. She had one final thing to say to all our clients here at Hughsons: “It is with a tinge of sadness and excitement that I am moving on from Hughson & Associates. I will miss the friendships I have made with staff
Common error – claiming GST on FBT
For those of you who prepare and file FBT returns on behalf of a GST-registered employer, you will be familiar with the GST on FBT adjustment that forms part of the FBT return. The adjustment itself is straight-forward and involves calculating GST on the gross taxable benefits that are subject to GST, and including this
Online reviews – what might they reveal
Engaging with customers is always important and in the current environment, online interaction with customers has become exponentially relevant. In a 2017 survey, 87% of people said that a business needed an online rating of at least 3 stars for them to use the business, and 84% trusted online reviews as much as a personal
