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Chartered Accountants

Trusted advisers of all tax compliance and annual accounting issues facing both individuals and small businesses.

Business tax bill is now law

Posted on Apr 12, 2017 by editor

The Taxation (Business Tax, Exchange of information, and Remedial Matters) Act 2017 received Royal assent on 21 February 2017. The new legislation focuses on changes to business taxation to make tax simpler. From 1 April 2017, the threshold for self-correction of errors under section 113A of the Tax Administration Act 1994 has increased from $500 to $1000; the use-of-money interest will be reduced or removed for the vast majority of business taxpayers; and most RWT exemption certificates can now be issued for more than one year. For the 2017-18 and later income years: The 63-day rule for employee remuneration has […]

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Preparing for an Inland Revenue audit

Posted on Mar 15, 2017 by editor

Inland Revenue conducts audits on businesses to ensure they are paying the correct amount of tax and are complying with tax laws. Businesses can be selected for an audit for various reasons, i.e. random selection, to analyse business accounts or tax returns, selecting a particular industry or area, and so on. However, Inland Revenue won’t disclose the reason you have been chosen. If your business is selected for an audit, there are some things you can do to prepare. Inland Revenue will send you a letter telling you what records it needs to see and you will be provided with […]

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Changes to online GST

Posted on Feb 16, 2017 by editor

Inland Revenue has introduced changes to help New Zealanders better manage their GST online. The changes to GST are the first of many changes over the next few years to make tax simpler. Here are some of the following changes: GST payments and returns – Pay your GST when you file your return without having to log out of myIR. – Make GST payments by direct debit, or by using your Visa or MasterCard credit or debit card. – Set up email and text message reminders when your GST return and payment is due or late, to avoid penalties. – […]

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Flexibility for those affected by recent earthquakes

Posted on Jan 19, 2017 by editor

Inland Revenue is providing added flexibility for those affected by the recent earthquakes that may not be able to meet a particular filing or payment date. All customers in affected areas including Wellington, can ask Inland Revenue to grant relief from penalties and use-of-money interest. Inland Revenue is encouraging those who have been affected by the recent earthquakes and are struggling to deal with their tax affairs to contact them as soon as possible. Additional relief is provided for farmers and fishers as the recent earthquakes are likely to materially affect their income for the 2017 income tax year. Approval […]

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Faster GST refunds

Posted on Dec 21, 2016 by editor

From February 2017, New Zealand businesses will have faster access to GST refunds after a change made to tax rules. The Minister of Revenue Michael Woodhouse has announced GST refunds will be available to the taxpayer in just two days by direct credit. The Tax Administration (Direct Credit of GST Refunds) Order 2016 will make it compulsory for Inland Revenue to provide GST refunds by direct credit to a taxpayer’s identified account. The current process uses a cheque from Inland Revenue which takes an average of 10 days to become available. The change comes as a result of extensive public […]

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FBT on the private use of a motor vehicle

Posted on Nov 23, 2016 by editor

Fringe benefit tax (FBT) is payable for any whole or part day (24-hour period) a motor vehicle is available for private use. The default FBT day starts from midnight, unless an alternative start time, i.e. 9am is selected. If a vehicle is taken home overnight, it will generally incur two days’ FBT. For example, where an employee takes a work car home at 6pm and returns it to their employer’s premises the following day at 2pm, the employer will have to account for two days’ FBT. Electing an alternative start time applies to all motor vehicles an employer files an […]

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A guide to GST registration

Posted on Oct 27, 2016 by editor

From 1 October 2016, non-resident businesses meeting the GST (Goods and Services Tax) registration criteria are expected to charge and return GST on any remote (including online) services they supply to customers who reside in New Zealand. Non-resident businesses are expected to register for GST when: they exceed or expect to exceed the GST threshold (that is their sales exceed NZD $60,000 in the last 12 months or are expected to be more than NZD $60,000 in the next 12 months) their customer is a resident in New Zealand they supply a qualifying remote service A qualifying remote service is […]

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Salary exchange for private use of company vehicle

Posted on Sep 29, 2016 by editor

If an employer pays an employee a lower salary in exchange for them using a company vehicle for their private use, this will affect their Working for Families Tax Credits entitlements and student loan obligations as the salary reduction is treated as part of their income. For example, an employer may offer a new employee: $50,000 salary and the private use of the work car, or $58,000 salary without private use of the work car If the employee decides to use the employer-provided car instead of the $8,000 in additional salary, they must include the $8,000 as income for Working […]

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Understanding GST in a property transaction

Posted on Aug 24, 2016 by editor

The GST implications of a property transaction often cause a lot of confusion for vendors and purchasers. There are specific legal and tax implications that both parties need to be aware of prior to drafting any agreement. Serious consequences can arise for both parties if not dealt with correctly, so it is important for vendors and purchasers to understand the basics of GST on property transactions. Vendors To register for GST the vendor must be using the land for “taxable supplies” for GST purposes and the land must not be used as a principal place of residence. Examples of taxable […]

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Keeping accurate records for your tax return

Posted on Jul 26, 2016 by editor

It is vital for all employers, employees and individuals to keep accurate and complete records when completing tax returns. Accurate records will help complete tax returns faster and avoid possible penalties for incorrect returns or underpaid taxes. For employers, your business records should include banking information; proof of income; expenses; cash books and wage books. Those who claim expenses against their income must keep sufficient records that support their claims. A tax record includes any information or document about sales; income; expenses; assets and liabilities i.e. receipts or bank statements. Records can be paper-based or electronic; however they must be […]

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Latest news

Business tax bill is now law

Posted on April 12, 2017 by BDS Hughes

The Taxation (Business Tax, Exchange of information, and Remedial Matters) Act 2017 received Royal assent on 21 February 2017. The new legislation focuses on changes to business taxation to make tax simpler. From 1 April 2017, the threshold for self-correction of errors under section 113A of the Tax Administration Act 1994 has increased from $500 to $1000; the use-of-money interest will be reduced or removed for the vast majority of business taxpayers; and most RWT exemption certificates can now be issued for more than one year. For the 2017-18 and later income years: The 63-day rule for employee remuneration has […]

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