Latest News
Snippets: Aug – Oct 2019
New provisional taxpayers beware Changes to the provisional tax regime, effective from the 2018 tax year, have generally been well received by taxpayers. Prior to the change, Inland Revenue charged interest from each provisional tax date if a taxpayer’s actual liability exceeded their ‘uplifted’ amount from prior year(s). This effectively meant taxpayers were required to
GST on land – Holdaway v Ellwood
It is common for disagreements to arise between taxpayers and Inland Revenue on the GST treatment of land transactions, but less common for these disputes to arise between a vendor and purchaser. However, this was the case in a recent High Court case, Holdaway v Ellwood (2019). The case highlights the importance of completing the
ACC – Supporting your business to be safer
Every year quad bikes are a major cause of death and serious injury in rural workplaces associated with accidental rollovers. An average of five people die in work-related quad bike incidents every year. WorkSafe strongly recommends that crush protection devices (CPDs) are installed on all quad bikes used for work. ACC has collaborated with WorkSafe
Residential Bright-line
The Income Tax Act 2007 has long contained provisions to tax the sale of property (or other assets) acquired with the intention of disposal. However, ‘intention’ is a subjective concept and has been difficult for Inland Revenue to police. Hence, the brightline test, (section CB 6A) was introduced as a means to tax profits made
From My Desk…
Hi All, It’s getting lighter in the mornings and I can drive home without needing my headlights! Our farming clients are all busy (as are we) getting on with our jobs. The economy is still flat and hence the unpredicted 0.5% cut in the cash rate. This will flow through to the borrowers in time
And Lastly…
What do Accountants suffer from that ordinary people don’t? Depreciation Why was Mark Hughson so excited that he completed a jigsaw puzzle in only 59 weeks? Because on the box it said 8 – 12 years Where do homeless accountants live? In a tax shelter What kind of things does a
In the Office…
Introducing our new staff… Clare Moss I joined the Hughson Team in 2018. My roles include preparation of Financial Statements and End of Year Tax Returns, GST Returns, and assisting with Payroll. Previously I have worked in Hospitality, Retail and Facility Management. I enjoyed the financial side of these jobs, so I went on to
Snippets: May – July 2019
Tax bounty Wanting a job that is flexible? Well a tax informant may be the job for you! An increasing number of countries operate reward or bounty systems where informants receive payments for assisting revenue authorities. The USA initiated a ‘tax bounty’ program in 2006, with a Whistleblowers Office established by the US Inland Revenue
Payday Filing
The way employers report payroll information to Inland Revenue (IRD) is changing. From 1 April 2018, IRD introduced a new electronic reporting system, providing employers the option of filing payroll information every payday. From 1 April 2019, the new system will be compulsory for most employers, so it is imperative business owners get to grips
Winding up a Company
If a company does not file its annual return with the Companies Office, it may be struck off from the Companies Register. This is sometimes used as a ‘short-cut’ method, rather than completing the short-form company liquidation process. However, this approach comes with some risks, for example, if a company is struck off the register
When is a gift not a donation?
If an individual pays “…a monetary gift of $5 or more…” to a charity they are able to claim 1/3rd of it back from Inland Revenue (IRD). Prior to 1 April 2008, individuals could only claim donations of up to $1,890, i.e. a refund of $630. The coalition Government at the time removed this limit
You versus your Trust
It is common from a layman’s perspective to not appreciate the relevance of treating separate legal entities as separate. Where expenditure is incurred to derive income, it is typically deductible for income tax purposes to the person that derived the income. Documentary evidence should be held that reflects this connection to ensure the expenditure comprises
