Thinking about Airbnb this summer?

If you’ve got spare space, putting your home on Airbnb is becoming a popular avenue to earn some extra income. With Central Otago hitting the peak summer season, there will be an influx of visitors looking for accommodation and with most hotels and motels in the area already booked out, travellers are turning to the … Continue reading “Thinking about Airbnb this summer?”

Tax pooling not as popular as it should be

While its own tax pool fund has hit the landmark figure of $100m in deposits, professional services firm Crowe Horwath believes not enough middle New Zealand businesses are taking advantage of a service which has no downside to it but offers advantages including ready access to funds, tax cashflow smoothing, and reduced interest payments. That’s … Continue reading “Tax pooling not as popular as it should be”

Tax realities could stem the flood of American immigrants

In the wake of Donald Trump emerging as the president-elect of the United States, New Zealand has experienced a massive upswell in interest from Americans considering emigration to this country. However, emigration is not a trivial matter made on the spur of the moment; in addition to the upheaval of family, friends and professional networks, … Continue reading “Tax realities could stem the flood of American immigrants”

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?”

Changes to the provisional tax rules a step closer

The Taxation (Business Tax, Exchange of Information, and Remedial Matters) Bill has passed through Parliament and now awaits Royal assent. This Bill introduces new rules to tighten foreign trust disclosures, changes to the provisional tax rules and a number of tax simplifications for businesses. A key compliance issue for many taxpayers is calculating and paying … Continue reading “Changes to the provisional tax rules a step closer”

Volatility in dairy presents tax opportunity

With the release of the 2017 National Standard Cost (NSC) values for livestock, advisory firm Crowe Horwath says ongoing volatility in the dairy cattle market presents both opportunity and risk in the tax structures for New Zealand’s farmers. Tony Marshall, tax advisory partner in the company’s Dunedin office, also says the gap between the two … Continue reading “Volatility in dairy presents tax opportunity”

IRD compliance focus on the ‘hidden economy’

IRD’s compliance focus has remained largely the same over the last few years with the likes of aggressive tax planning, high-wealth and high-income individuals and land transactions being key areas of focus. The “hidden economy” is another area where there has been a lot of IRD activity over the last year and we expect to … Continue reading “IRD compliance focus on the ‘hidden economy’”

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”

Interest and investment income tax simplication proposals

As part of the Government’s ongoing tax simplification programme, the Minister of Revenue Hon Michael Woodhouse has released a consultation document ‘Making Tax Simpler – Investment income information’. While the release of this document has led to various headlines in the media suggesting IRD is wanting to increase the rate of tax to 45% on … Continue reading “Interest and investment income tax simplication proposals”

Bun fights with the inland revenue not always level playing field

In my last article I provocatively pondered the issues likely to arise when the Taxation (Land Information and Offshore Persons Information) Bill is enacted. My concern was that the design of the rules could be much simplified, for as they are a train wreck could ensue that not even Sir Topham Hatt’s Sodor Search and … Continue reading “Bun fights with the inland revenue not always level playing field”