Richard Ashby

Inland Revenue (IR) has recently noticed that the way FamilyBoost payments are calculated for those persons who derive income from schedular payments, is not working as intended. This is because present legislation treats schedular payments in the same way as salary and wages, thereby using income information for the quarter (as opposed to income from…

Inland Revenue (IR) has recently issued a draft standard practice statement (SPS), providing updated guidance to you all about their authority to issue a deduction notice to a third party to recover outstanding amounts of tax owed by you. The SPS has a reference of ED0245 and is a 15-page read if the content is…

I would be very surprised if you have not, at some stage, been asked questions by your clients as to whether the motor vehicle costs incurred in getting themselves from their home to their place of work were tax deductible or whether the travel between home and work by one of their employees in a…

Inland Revenue (IR) have just released a Questions We’ve Been Asked (QWBA) for comment, titled “How do the bright-line rollover relief provisions apply to transfers of residential land between associated persons?” The QWBA is referenced PUB00489, and will soon be joined by an updated version of QB 17/02 – “Income tax – date of acquisition…

Inland Revenue (IR) has issued a draft interpretation statement titled ‘Look-through companies and disposal of residential land under the bright-line test.’ It is a 50-page document and is referenced PUB00455. The Interpretation Statement (IS) covers 5 specific scenarios, which involve Look-through companies (LTC) and residential land, and endeavours to explain how the bright-line rules (including…

Inland Revenue (IR) has recently issued the Standard Practice Statement (SPS) 24/01, titled ‘Requests to change a balance date.’ The SPS is effective from July 30, 2024, and replaces the earlier version – SPS 18/02. The SPS discusses scenarios where the taxpayer (I note the reference to ‘customers’, but I’d question whether any of us actually…

Inland Revenue (IR) has released a draft Interpretation Statement (IS) titled ‘Income tax – identifying the relevant item of property for depreciation purposes.’ The issue covered by the commentary is important because it is first necessary to identify the relevant item of property to ensure it is a depreciable item and, if so, determine the…

What is GST? The Goods and Services Tax (GST) is a consumption tax charged on most goods and services in New Zealand. The current rate is 15%. GST is added to the price of taxable goods and services, and businesses are responsible for collecting this tax from their customers and paying it to the Inland Revenue…

New Zealand business recession stories In 2006, Rod Drury founded Xero, a cloud-based accounting software company in New Zealand. When the Global Financial Crisis (GFC) hit in 2008, businesses struggled, but Xero saw an opportunity. They recognised that small businesses would look for cost-effective and efficient solutions to manage their finances remotely. Despite the recession, Xero focused…

Children in Family Office environments have the unique advantage of growing up with considerable financial resources at their disposal. However, with this privilege comes the responsibility of managing wealth wisely and understanding the legalities surrounding relationship property. In many of the families we work with, financial management often falls into the hands of an individual.…

AUTHOR: Lily Li New Zealand has officially entered a recession, and as a business owner, you’re likely feeling the pressure of high inflation and rising borrowing costs. Reducing your tax bill legally and effectively is now more critical than ever. Here’s a guide to help you maximise your tax deductions. 1. File your tax returns…

With July 1 fast approaching, which will see the residential land bright-line period reduce back to two years, IR has released QB 24/01, titled ‘If a person has two or more homes, which home is their main home for the purpose of the main home exclusion to the bright line test?’ Now, you’ll appreciate that…