R&D Tax Incentive Scheme

Following completion of the consultation process, the Government has announced the details of the new Research & Development (R&D) tax incentive package.  The final proposal includes several changes from that proposed in the discussion document. The R&D tax incentive package will give eligible taxpayers a tax credit to offset against their tax liability for the … Continue reading “R&D Tax Incentive Scheme”

Distributions from Trusts and GST

When a GST registered trust distributes trust assets to beneficiaries, a GST liability for the trust may result. A registered person needs to charge GST when the person supplies goods or services in the course or furtherance of a taxable activity. What constitutes a “supply” is extremely broad and includes a GST registered trust distributing … Continue reading “Distributions from Trusts and GST”

Tax Working Group Report

Managing Partner Scott Mason reviews the recently released TWG interim report.  The Government-appointed Tax Working Group (TWG) released its interim report on Thursday 20th September, which sets out its initial views on the future of the tax system. Having received 6,700 submissions from the public and interested groups, plus a raft of papers from officials, … Continue reading “Tax Working Group Report”

Anti Money Laundering and Counter Financing of Terrorism Act 2009 (AML/CFT Act) will soon be implemented

Recent changes to New Zealand’s Anti-Money Laundering legislation mean that from 1 October 2018, accountants are required to collect and verify identification and other personal information about our clients, individuals who own or control clients, and individuals instructing us on behalf of clients. This is called “customer due diligence” or ‘CDD’ and is a type … Continue reading “Anti Money Laundering and Counter Financing of Terrorism Act 2009 (AML/CFT Act) will soon be implemented”

IRD Payday Filing

Payday filing has been available since April 2018. Instead of filing an employer monthly schedule and deduction form (IR348 & IR345) every month, employers will file employment information every payday in line with their normal payroll cycle.  From 1 April 2019 payday filing will become mandatory. Payment dates remain the same. Inland Revenue is in … Continue reading “IRD Payday Filing”

Bright-line Test, Subdivisions, and Lifestyle Blocks

The bright-line test taxes residential land sold within the bright-line period and applies to residential land that a person first acquired an interest in on or after 1 October 2015. The period of the bright-line test increased from two years to five years for residential land that a person first acquired an interest in, on … Continue reading “Bright-line Test, Subdivisions, and Lifestyle Blocks”

Kilometre rate for business running of a motor vehicle

A self-employed person that uses a motor vehicle privately and in their business, needs to apportion running costs for the motor vehicle between business and private use. The apportionment can be based on actual costs or the kilometre rate method. The kilometre rate method replaces the mileage rate method for the 2017-18 and later income … Continue reading “Kilometre rate for business running of a motor vehicle”

Not all Share Traders are Treated Equally

In recent years, technology and globalisation have combined to make investing offshore significantly more accessible, with both greater availability of information on investments around the world, and direct investment platforms.  For the growing number of NZ taxpayers that hold or trade in overseas investments, these holdings will generally be taxed under the Foreign Investment Fund … Continue reading “Not all Share Traders are Treated Equally”