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Business Continuity Planning

This service may be fully funded by the regional business partners network. If your business qualifies, you can get our COVID-19 specific business support services (up to $2500 per service).  The funding will not last forever, so let us know that you are interested, and we will connect you with our Growth Advisor so that it is fast-tracked. To help speed up the process make sure you register with the Regional Business Partners Network – this only takes 5 minutes: Register your b...

September 7, 2020

Cashflow Forecasting

This service may be fully funded by the regional business partners network. If your business qualifies, you can get our COVID-19 specific business support services (up to $2500 per service).  The funding will not last forever, so let us know that you are interested, and we will connect you with our Growth Advisor so that it is fast-tracked. To help speed up the process make sure you register with the Regional Business Partners Network – this only takes 5 minutes: Register your b...

September 7, 2020

Update on Finance Applications

We are experiencing a record low interest rate environment, currently below 2.55% pa. This makes borrowing money cheap and attractive for capital expansion such as a new rental property, capital equipment, buying a new business, funding growth, or consolidating debt. However, banks are being more restrictive for new lending and looking at each application in depth. We noticed this trend from the banks last year when interest rates dropped below 3%. Since Covid-19 the banks have tightened their l...

September 1, 2020

Covid-19 Wage Subsidy Extension

The wage subsidy has been extended to support employers and self-employed who have been significantly impacted by Covid-19. It is available to all businesses (including the self-employed, contractors and sole traders). The extension is available after the current wage subsidy ends; from 10 June 2020 until 1 September 2020....

May 21, 2020

Temporary Loss Carry-Back Scheme

IRD have introduced a loss carry-back scheme to support customers during the current uncertain economic environment. Businesses making a loss in either the 2020 year or the 2021 year can use that loss to offset profits they have previously made. The loss is carried back to the preceding income year. In the preceding income year, tax is paid on profit. With the loss carried back, tax that has already been paid on prior year profits, may be refunded. This scheme does not apply to residential rent...

May 21, 2020

Government Loans - Small Business Cashflow Scheme

The government is providing loans of up to $100,000 to help businesses, including contractors and self-employed, experiencing cash flow difficulties. IRD is administering the scheme on behalf of the government, however the loan is not a ‘tax’ product, therefore you must apply for the loan yourself - we cannot do this for you (but we can help or walk you through the process). Applications are open from 12 May to 12 June 2020 and are made through myIR website. ...

May 21, 2020

Covid-19 FAQ - Wage Subsidy, Holiday Pay & More

We have recently had a high number of questions relating to the wage subsidy, holiday pay during lockdown (Easter), reconciling Xero and taxes related to the Covid-19 subsidy. Our Frequently Asked Questions (FAQ) below contain answers based on the information available now. We have previously outlined key information on the leave scheme and wage subsidy already and this article continues to elaborate on some of the details. The full (updated) wage subsidy declaration can be found here...

April 7, 2020

Upcoming Tax payments due: 7 April 2020 and 7 May 2020

2019 terminal tax payments are due on 7 April 2020. All our clients will now have received notification via email or phone if you have a payment due. If you are currently experiencing cash flow difficulties to meet these payment (related or unrelated to Coronavirus) please let us know as soon as possible. There are options available as outlined below....

March 19, 2020

COVID-19 - Leave and Self-Isolation Scheme for Business Owners

The government has announced a COVID-19 leave payment scheme to provide support. What does this mean for business owners? In summary, if your employee has to self-issolate, is sick with COVID-19, or caring for others with COVID-19, and unable to work from home, Ministry of Social Development will pay $585.80 for a full time employee (20 hours or more) and $350 for a part time employee. This payment is to be passed from the business directly to the employee. The purpose of the leave scheme is to...

March 19, 2020

Covid-19 Wage Subsidy for Employers

The government has put together a wage subsidy package for employers that are affected. If you are an employer, contractor, sole trader, or self-employed you may qualify to get the COVID-19 wage subsidy. The wage subsidy is paid to the employer to assist in paying wages due to significant adverse effects from COVID-19.  This is separate from the COVID-19 Leave Payment Scheme. See the leave payment scheme information here. This article outlines the qualifying criteria and subsidy t...

March 19, 2020

COVID-19 Proposed Tax Changes

The government has announced a $12bn economic stimulus package to assist with Coronavirus. Here are some of the key tax proposalsThese changes are yet to be passed through law and some of the specific information is yet to be finalised. Most changes are proposed to have an effective date of 1 April 2020. We will continue to provide more information as it becomes available. If you would like to discuss how these may affect you, please don’t hesitate to contact us....

March 19, 2020

GST Zero Rated Property Transactions

We regularly review land transactions where either the purchaser or vendor are GST registered, but the other party is not. This inconsistent nature of each parties GST status may result in some uncertainty over the price of the land and have potential significant consequences. This article outlines the GST status of contracts based on different circumstances We normally experience these types of transactions when: purchasing or selling lifestyle blocks purchasing new properties from GST registe...

January 22, 2020

Back to back loans & interest deductibility

When a business borrows money to earn taxable income, the interest cost will be tax deductible. The key test is the “use” of the borrowed money, rather than the purpose of borrowing. There must be a clear nexus between the interest incurred and the production of taxable income. In determining the use of the borrowed money, the “flow” of money is traced. ...

January 9, 2020

Companies with Losses Carried Forward

Companies may have losses carried forward from a prior year. Losses may have resulted from losing money in a previous business venture, one-off signature expenditure (e.g., significant repairs and maintenance on a property), or during the start-up phase of a new business. This article will explain what losses carried forward are, how they can be utilised, and in some situations how it may be appropriate to utilise the losses over more than one year. ...

December 3, 2019

Proactive ways to manage your tax

Benjamin Franklin said there were only two things certain in life: death and taxes. What if there was a better way to manage paying tax on your terms that suit you? Tax Pooling is a system, that allows taxpayers to pay provisional tax when it suits, while ensuring that Inland Revenue (IRD) receives the tax it’s owed on time. Taxpayers can customise payment arrangements so they can pay tax when they have cash, or delay payments if they have temporary cash-flow shortfalls. Tax poolin...

November 20, 2019

Helping your child into their first home

We have recently had several conversations about helping children into their first homes. Some parents have an inter-generational view of wealth and like to pay it forward by providing an early inheritance. There is no one size fits all approach for this process, or any family succession strategy. Individual specific advice is recommended. This article explores options available to help your children into their first home and outlines some risks to considers. If the child has a partner and the...

October 1, 2019

Differences Between Cash and Profit

Cash is king! Do you make a profit, have tax to pay but wonder where your cash is going? There has been increasing discussions about the economy potentially slowing down. Experience shows that those in a strong cash position have opportunities available in a downturn; normally due to others bad fortunes or over-extending themselves. Those struggling to meet payroll, pay supplier invoices or stuck with old stock they cannot move have more risk. This article uses several real-life examples to expl...

October 1, 2019

Cryptocurrency Tax Update - March 2019

Cryptocurrency tax is currently being reviewed by IRD and different tax interpretations, such as financial arrangements are being applied and discussed. Financial arrangement tax treatment may apply to some cryptocurrency tokens and will depend on the specific characteristic of each individual token.  We have summarised cryptocurrency tokens into four distinctive categories and discussed how financial arrangement tax treatment would apply to each category of token. Each tax payer’s wider ...

March 29, 2019

Combined Business & Personal Travel

Business travel often provides a great opportunity to add a few extra days to explore a new location or rest and relax and enjoy some time away from home. This article outlines the tax-deductibility for business travel that includes a personal element. ...

March 18, 2019

Comprehensive Guide to PayDay Filing

Payday Filing From 1 April 2019 payday filing is mandatory. This means that each payday employers will be required to file employees earning details to IRD. Summary of PayDay filing Employers must file employment information every payday instead of monthly PAYE returns.  Payments to IRD remain the same, due by 20th of the following month.PayDay filing provides IRD with new and departing employee contact details such as address, including date of birth....

February 15, 2019

Cryptocurrency Tax Payments - FAQ

Some taxpayers have 2018 terminal tax payments due on 7 April 2019. This is the final tax payment due for the year ending 31 March 2018. We have also previously signaled 2019 provisional tax payments (due 7 May 2019) which are dependent on 2019 profits. The article below outlines frequently asked cryptocurrency tax questions regarding these upcoming tax payments for both 2018 terminal tax and 2019 provisional tax.  We have also previously published "What is terminal tax?" and "What is&...

February 15, 2019

Ring Fencing of Rental Losses

IRD recently released draft legislation for ring-fencing of rental property losses. Currently, if a rental property makes a loss, that loss is offset against other employment income and normally results in a tax refund. From 1 April 2019, IRD have drafted legislation that this will no longer occur. Instead the loss will be ‘ring-fenced’ and only able to be off-set against future rental profits. Currently, this legislation is only in draft and can be viewed here. The key points are: Start dat...

February 12, 2019

Holiday Pay Guide

If you’re unsure what days and amounts (i.e., time and half and a day in lieu etc) you need to pay your employees over the holiday period, our holiday pay guide may help This year Christmas day and New Year’s Day fall on a Tuesday, and Boxing Day and the 2nd of January fall on a Wednesday. There are no special rules for these public holidays this year. For holiday pay purposes, the public holidays are observed on the days they fall on. What to pay your employee if they don’t work the publ...

December 21, 2018

Non-Taxable Cryptocurrency Gains

Inland Revenue’s position is that gains on cryptocurrency are taxable if they were acquired for the purpose of disposal (selling or exchanging). Furthermore, their default position is that cryptocurrency is acquired for the purpose of disposal. “Bitcoin and similar cryptocurrencies generally don’t produce an income stream or provide any benefits, except when they’re sold or exchanged. This strongly suggests that cryptocurrencies are generally acquired with the purpose to sell or exchange...

November 21, 2018

Using a company for cryptocurrency trading?

We’ve been asked “is there any benefit to using a company for cryptocurrency trading?” We’ve explored this option further and provided the advantages and risks to be aware of.  The decision to trade using a company structure should be based upon your own personal circumstances. Restructures always require a commercial reasoning for doing so otherwise is may be seen as tax avoidance by Inland Revenue. We recommend contacting us before doing anything.  Note: there are tax differe...

September 10, 2018 Posts 1-25 of 56 | Page next
 

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