Removing GST goods from the tax base

It’s been another quiet week, so no updates of interest for you to read during your morning coffee and cake break, sorry. Instead, I thought I’d provide another useful (solely in the writer’s opinion, mind you) reminder to those of you who, either yourself or your clients, may presently have assets within the GST base that […]

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International tax disclosure exemption issued

Each year, Inland Revenue (IR) issues an international tax disclosure exemption in accordance with the provisions of section 61(2) of the Tax Administration Act 1994. Section 61(1) of the TAA requires a person with a control or income interest in a foreign company or an attributing interest in a foreign investment fund at any time […]

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It’s a done deal!

Well, the proposed tax changes I covered in last week’s edition of AWIR are no longer proposals. Parliament has worked overtime to pass the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill, which now awaits the Royal assent. Appreciating that a week is a long time for some of you (although admittedly, […]

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Financial numbers explained…with beer.

My passion as an accountant for small to medium-sized businesses is to “dumb down” accounting to each business owner so they can make informed, comfortable decisions about their business. Often, I hear the words, “I am working my backside off, and it feels like I am treading water, if not sinking”, or “Maybe I must […]

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Marketing on a budget: Smart strategies for small to medium businesses

As a business owner, allocating resources effectively is crucial for growth and success. One area that often gets overlooked or underfunded is marketing. However, even modest marketing efforts can yield significant returns with the right strategies and a well-planned budget. Setting a realistic marketing budget A common rule of thumb is to allocate 2-5% of […]

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End of financial year checklist

It’s that time of year when you’re either scrambling to file your last financial year before the end of March or gearing up to complete another financial year. When preparing for the year-end, you may want to start collecting the documents or information you’ll need to provide to your accountant (including but not limited to): […]

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AWIR: Changing balance dates | GST grouping rules

Changing balance dates Inland Revenue (IR) has issued ED0252, a draft standard practice statement (SPS), which covers how the Commissioner will address applications for requests to change balance dates. Approvals will usually be granted where, to name a few of the listed reasons: However, your request is unlikely to be approved if it is viewed […]

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Debt Eats Equity

The heading of this article is not original to me; it came from Stuart Nattrass, probably during those conversations around the board table. As a long-term board member of South Canterbury Finance, he would know about debt on both the upside and the downside. The dynamics of debt Detail Purchase/hard money Plus 20% growthin asset […]

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Employee share scheme guidance

Inland Revenue (IR) has just released several draft interpretation statements, which individually cover certain aspects surrounding the taxation of employee share schemes: And if all of that wasn’t enough for you to get your teeth into, also released is a reading guide (basically a four-page expansion on my narrative above, so you can decide which […]

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Charities business income exemption IS

Inland Revenue (IR) has released for comment PUB00465: ‘Charities – business income exemption’, which is an interpretation statement that considers the extent to which business income a charitable entity derives is exempt from tax under section CW 42 of the Income Tax Act 2007. For those of you who have assisted tax charities with preparing their income tax returns, […]

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New IS on taxation of trusts released

It may not seem that long ago, 2018 in fact (although scarily whilst seeming just like yesterday, it was actually six years ago!), when Inland Revenue (IR) released a fairly comprehensive interpretation statement surrounding the taxation of trusts – IS 18/01. Therefore, some of you may be a little surprised to hear that IS 24/01 […]

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