Are you thinking of replacing your work vehicle?

Among the changes included in the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill is an amendment that allows close companies to elect to apportion expenditure on motor vehicles the company provides to shareholder-employees between business use and private use as an alternative to paying fringe benefit tax (FBT) on the motor vehicle. … Continue reading “Are you thinking of replacing your work vehicle?”

Taxation of employee share schemes

A benefit an employer provides to an employee under a share purchase agreement is “employment income” for income tax purposes.  A benefit arises under a share purchase agreement when the amount the employee is required to pay for the shares is less than the market value of the shares. For example, if an employer were … Continue reading “Taxation of employee share schemes”

Motor vehicles and fringe benefit tax

An employer is liable to pay fringe benefit tax (FBT) on fringe benefits the employer provides to its employees.  One of the big-ticket fringe benefits an employer could provide to an employee is making a motor vehicle available for the employee’s private use. If an employer makes a motor vehicle available to an employee, an … Continue reading “Motor vehicles and fringe benefit tax”

FBT on Group Life insurance, disablement & trauma insurance

Inland Revenue is currently reviewing employers who take out group life insurance, disablement and trauma insurance policies to cover employees. Inland Revenue is concerned that some employers have not been correctly accounting for Fringe Benefit Tax (FBT) on these policies. Where an employer has taken out an insurance policy in its own name, but it’s … Continue reading “FBT on Group Life insurance, disablement & trauma insurance”

SME tax changes announced

The Prime Minister announced a business tax package yesterday which is to start taking effect from the 2018 income tax year (1 April 2017 for most). The package is a step forward for IRD’s ‘Making Tax Simpler’ project. The main changes announced are: Extending safe harbour to non-individual taxpayers and raising the threshold to $60,000 … Continue reading “SME tax changes announced”