Update: New Zealand’s Proposed GST Rules for Low Value Imported Goods

There has been a significant increase in overseas businesses selling online to New Zealand customers.  A new Bill has been introduced to maintain fairness in New Zealand’s tax system and ensure New Zealand retailers are not overly disadvantaged when New Zealand consumers import low value goods without GST.  This Taxation Bill, ‘GST Offshore Supplier Registration … Continue reading “Update: New Zealand’s Proposed GST Rules for Low Value Imported Goods”

Ring-fencing rental losses: How might you be affected?

Rules to “ring-fence” losses from residential properties are to apply from 1 April 2019. The aim of these rules is to prevent the owners of residential properties from offsetting losses from these properties against other sources of income, such as salary and wages or business and investment income, thereby reducing the person’s tax liability. The … Continue reading “Ring-fencing rental losses: How might you be affected?”

Tax Working Group Announcements – 21 February 2019 “Lock-In”

The Labour Party, during the 2017 election, promoted a policy platform around tax reform, focussing on perceived fairness.  Following a negative public reaction, especially to the spectre of a Capital Gains Tax (CGT), they promised no new taxes in their first term, but rather to go to the polls in 2020 with a fully legislated … Continue reading “Tax Working Group Announcements – 21 February 2019 “Lock-In””

Research and Development Tax Incentive

The way research and development (R&D) is supported by the Government is changing. After considering feedback and submissions on changes proposed in April 2018, a Bill was introduced on 25 October 2018 which includes a new tax incentive package for businesses investing in R&D. This represents the latest approach to encouraging R&D in New Zealand. … Continue reading “Research and Development Tax Incentive”

You’re losing money – where is it going?

The results of the 2018 Director Sentiment Survey are interesting. There has been a 25% lift in the number of boards assessing ethical risks. Some of this will have been driven by the reviews into franchising and bank behaviour in Australia, but the issues for most business owners are much closer to home. The police … Continue reading “You’re losing money – where is it going?”

GST on low-value imported goods

Earlier this year the Government announced its intention to change the GST treatment of low-value imported goods. Although not a new tax, this proposal has been called the “Amazon tax” in the media, because overseas internet-based retailers, such as Amazon, are the target of the rule change. The Government has now announced the details of … Continue reading “GST on low-value imported goods”

Tax Changes for the Charity and Not-for-Profit Sector

The Government has introduced legislation into Parliament that will ensure that a non-profit body is required to pay GST whenever it sells an asset on which it has claimed GST. The same legislation includes a requirement that organisations will need to be registered as a charity in order to obtain donee status. Subsidiary entities of a … Continue reading “Tax Changes for the Charity and Not-for-Profit Sector”

Ensure you and your farming operation are protected

Not planning for the impact a major event could have on your farming business exposes you to a significant level of risk. Ensuring your farm has adequate insurance cover means asking some hard questions. Tim Ewen, Risk Specialist for Crowe Horwath states, “a good adviser will cut through the jargon to help you understand the … Continue reading “Ensure you and your farming operation are protected”

Qualifying as a donee organisation – Inland Revenue new approach

Where an organisation has met the criteria for donee status, individuals making monetary gifts to the organisation will qualify for a donations tax credit and a company may be eligible for a deduction against its income. To qualify as a donee organisation the funds of the organisation must have been “applied wholly or mainly to … Continue reading “Qualifying as a donee organisation – Inland Revenue new approach”