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”

Dividends on preference shares

Companies are often incorporated with a class of preference shares, usually in addition to ordinary shares. Preference shares enjoy preferential rights which are defined by the constitution or the terms of issue of the shares. Examples of these preferential rights can include: set dividend rates, priority upon liquidation or special voting/non-voting rights. For close family … Continue reading “Dividends on preference shares”

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”

Planning a staff function for Halloween, Guy Fawkes or Christmas?

 If you are intending to have a staff party or function for Halloween, Guy Fawkes, Melbourne Cup race day or Christmas, there are tax rules that dictate what your business can claim as a deduction. Although businesses are able to claim a deduction for expenditure on costs associated with staff functions, certain expenditure is classified … Continue reading “Planning a staff function for Halloween, Guy Fawkes or Christmas?”

Placing a bet on the Melbourne Cup?

In recent times, betting on the Melbourne Cup, whether in an office sweepstake, at a racetrack, or through the TAB, has become a popular pastime.  This year, Melbourne Cup race day is on 1 November and the prize money totals $6,200,000. If you were intending to place a bet, would your winnings be income that … Continue reading “Placing a bet on the Melbourne Cup?”

Tax pools are valuable tools

In these uncertain economic times, managing a business’s income tax cashflows is even more critical to ensure that tax payments are both appropriate and not crippling in terms of quantum and timing.  Tax can in itself be one of the largest expenditure lines for a business. Tax on business profits is dealt with both prospectively … Continue reading “Tax pools are valuable tools”