by Munro Benge | Sep 21, 2018 | Technical Updates
On 20 September 2018, the Tax Working Group (the Group) updated the public on its progress and thinking with the publication of its interim report, “Future of Tax”. In a press release, the Chair, Sir Michael Cullen, said that the Group had conducted a wide-ranging...
by Munro Benge | Sep 7, 2018 | Issue 12 October 2018
Expanding your business can be exciting, but if you grow too fast – and without adequate planning – you could face major problems. Besides the uncertainty of how long the growth period will last, it’s common to lose focus of some of the factors that play a key role in...
by Munro Benge | Sep 7, 2018 | Issue 12 October 2018
Cecilia and James Robinson founded My Food Bag in March 2013 with Masterchef winner and dietician Nadia Lim, her husband Carlos Bagrie and former Telecom chief executive Theresa Gattung. With a concept based on delivering a week’s worth of recipes and the...
by Munro Benge | Sep 7, 2018 | Issue 12 October 2018
Steady cash flow is the fuel that powers your business, but when you’re busy doing a million things at once it can easily slip to the bottom of the priority pile. Here are some tips to keep the cash flowing while you’re growing: Invoice quickly – good debtor...
by Munro Benge | Sep 7, 2018 | Issue 12 October 2018
There are several options available when it comes to accessing money to invest in your business. However, did you know that provisional tax payments are also a source of finance? Tax Finance, an option offered by an IRD-approved tax pooling provider such as Tax...
by Munro Benge | Sep 7, 2018 | Issue 12 October 2018
If you’ve seen the film The Wolf of Wall Street, you’ll be familiar with the concept of money laundering – an illegal process where ‘dirty money’ received from criminal activities is passed through legitimate businesses and made ‘clean.’ In response to a growing...
by Munro Benge | Sep 7, 2018 | Anti-Money Laundering
If you have recently tried to start a new investment or open a bank account, you would have been required to prove your identity, location of residence, and proof of your source of funds. These requirements are all part of the Anti-Money Laundering and Countering...
by Munro Benge | Sep 7, 2018 | Issue 12 October 2018
Did you know the mileage rate we’ve been referring to for years is now the kilometre rate? If you’re a sole trader or in a partnership (and use your own vehicle for business), you can claim your running costs as an income tax deduction. Traditionally, if you own a...
by Munro Benge | Sep 7, 2018 | Issue 12 October 2018
Visualise, plan and prepare for growth When you consider every large corporation started out as a small business, the idea of growth is exciting! To avoid growing pains, however, the first step is to create a focused vision for your business. Here’s how: Define your...
by Munro Benge | Sep 6, 2018 | Newsletters
Planning a summer business trip with a personal holiday tacked on the end? Renting out the bach and unsure what expenses can be claimed? Whatever your situation, we want to make sure you’re getting the expense claim tax break you’re entitled to. Here’s the lowdown on...
by Munro Benge | Sep 6, 2018 | Trusts
Do you have a family trust? Thinking of forming one as a way to future-proof your assets for you and your children? Take note – the Trustee Act is getting a makeover. While there are still a few parliamentary hurdles to jump, now’s the time to get your head...
by Munro Benge | Sep 6, 2018 | Trusts
Up until now, a trustee’s job description has been clear as mud with many families getting into strife unaware of their trustee’s responsibilities. If the new bill comes into place, a trustee’s role will be clearly outlined, and include: Knowing the terms of the trust...
by Munro Benge | Sep 6, 2018 | Trusts
#1 Extending perpetuity laws At the moment, when you set up a family trust, it has a time limit of 80 years. Then you have to wrap it up and distribute the assets. The new legislation suggests extending it to 125 years, which may involve significant succession...
by Munro Benge | Sep 6, 2018 | Trusts
Whether you’re thinking of becoming a trustee for your own family trust or someone else’s, it’s important to know your obligations under the current law before accepting the role. 8 things to know before becoming a trustee It’s a legal responsibility with a lot of...
by Munro Benge | Sep 6, 2018 | Trusts
Family trusts are a popular way to protect and manage your assets, such as the family home, for you and your family, now and in the future. They can have a valuable role to play, but they’re not suitable for everyone. Here are the pros and cons of family trusts to...
by Munro Benge | Sep 6, 2018 | Trusts
Get your paperwork in order: Document your trust actions carefully (if you don’t already) and make sure they’re accurate. Revisit your succession planning: Talk to us to make sure your succession plans still make sense if this legislation goes through. Review your...
by Munro Benge | Jun 7, 2018 | Newsletters
Given the importance of keeping your PAYE and GST record-keeping and payments in order, it might be tempting to think that Fringe Benefit Tax, or FBT, is a relatively minor thing. But don’t be fooled. In 2017, Inland Revenue created a dedicated audit team to focus on...
by Munro Benge | Jun 7, 2018 | Newsletters
New Zealand’s is an export-led economy, driven by a handful of major industries like dairy and wine. But more and more smaller players are also conquering offshore markets with smart, innovative products and services in every sphere. If you’ve ever contemplated trying...
by Munro Benge | Jun 7, 2018 | Newsletters
If you receive the Families Package (formerly the Family Incomes Package), you may be affected by three changes coming on 1 July 2018. They include: a Winter Energy Payment to help older people and low income families heat their homes a Best Start tax credit for...
by Munro Benge | Jun 7, 2018 | Newsletters
If you’re applying for an ACC CoverPlus Extra policy, it’s worth noting that the policy no longer starts on the date of the application, but when you sign the offer letter. So if you have such a letter in your in-tray waiting to be signed, now’s the time to get onto...
by Munro Benge | May 22, 2018 | Budget 2018
“We are committed to living within our means and having a buffer to deal with the risks and shocks that a small country like New Zealand inevitably faces.” Hon Grant Robertson, Finance – Minister There weren’t too many surprises with the 2018 Budget. It marks a...
by Munro Benge | May 22, 2018 | Budget 2018
Health spending is the headliner of the 2018 budget, with an extra $750 million allocated to capital spending and an additional $3.2 billion to operational funding over the next 4 years. The Minister described this as “bread and butter funding”. The new capital is...
by Munro Benge | May 22, 2018 | Budget 2018
“Our tax system will be fairer and more balanced to encourage investment in the productive economy.” Grant Robertson The budget position on tax is something of a watching brief. The Tax Working Group (TWG) was a tangible presence while the Budget was read but their...
by Munro Benge | May 22, 2018 | Budget 2018
There is a drive to widen the tax base. With that in mind, the Government will provide extra operating funds to Inland Revenue to collect more taxes and, in particular, to ensure outstanding company tax returns are filed. At a proposed cost of $31.3 million this is...
by Munro Benge | May 22, 2018 | Budget 2018
The Budget allocates $1 billion over four years to finance tax incentives for more research and development (R&D) by Kiwi businesses. R & D has had something of a Stop Go course over the last decade with a range of measures deployed. These have included...
by Munro Benge | May 22, 2018 | Budget 2018
Announced in February, the Provincial Growth Fund (PGF) has been allocated $1 billion across both operating and capital expenditure. This includes funding across the One Billion Trees programme and investment-ready initiatives. It is early days yet to predict outcomes...
by Munro Benge | May 22, 2018 | Budget 2018
While the Government points out the Budget provision for $1.6 billion in new operating funding over four years is a 45% increase on last year’s Budget, most seem to agree that it still won’t go far enough. $395.8 million in new capital funding for better schools and...
by Munro Benge | May 22, 2018 | Budget 2018
December’s mini-Budget allocated $2.1 billion for KiwiBuild to deliver 100,000 affordable houses across the country, including 50,000 in Auckland over the next 10 years. Budget 2018 commits more than $1 billion in new funding towards housing, including $369 million in...
by Munro Benge | Apr 12, 2018 | Newsletters
Want to win new customers? Ok great. But whatever you do, don’t ignore the ones you already have. Studies show that the longer your customers stay, the more they’ll spend with you*. Happy customers = loyal customers = boosted bottom line. *Depending on the type of...
by Munro Benge | Apr 12, 2018 | Newsletters
How raving fans can rock your business You may have heard the term ‘raving fans’. It’s a passionate subset, usually about 10-15% of your customer base, who are so in love with your business that they shout it out from the rooftops. They keep coming back, not because...
by Munro Benge | Apr 12, 2018 | Anti-Money Laundering, Newsletters
New legislation puts laundering in the spotlight While New Zealand is hardly the money laundering capital of the world, we still see our share of shady activity. Every year, around $1.35 billion of fraud- and drug-related money is laundered through legitimate New...
by Munro Benge | Apr 12, 2018 | Newsletters
The minimum wage in New Zealand has increased from $15.75 to $16.50 per hour. Minister for Workplace Relations and Safety, Iain Lees-Galloway, says the $0.75 rise will benefit around 164,000 workers and their families, and will increase total wages by $129 million per...
by Munro Benge | Apr 12, 2018 | Newsletters
Regardless of your stance on global warming, there’s no denying that we’ve had some unusual weather patterns of late. This summer was one of the hottest and stickiest on record – hampering output at times, and making it difficult to operate efficiently. But an...
by Munro Benge | Mar 15, 2018 | Newsletters, Property
Revenue Minister Stuart Nash has confirmed the bright-line test on residential property sales will be extended from two years to five years. At present, income tax must be paid on any gains from residential property sold within two years of acquisition, with some...
by Munro Benge | Mar 15, 2018 | Newsletters
The end of the financial year can be either stressful or a seamless part of what you do. Ideally, your end-of-year accounts will confirm what you think your business has been doing for the past 12 months. Be a good Scout to avoid end-of-year migraine Being prepared is...
by Munro Benge | Feb 16, 2018 | Newsletters
An employee can take unpaid parental leave from the workplace when they are having a baby or taking on the permanent care of a child under six years old, providing the employee meets the eligibility criteria. If the employee is eligible for parental leave and takes...
by Munro Benge | Jan 31, 2018 | Newsletters
One of the first questions business owners ask when a new government enters power is what changes, if any, are coming in the area of tax. Revenue Minister Stuart Nash provided a good steer on that when he addressed Chartered Accountants Australia and New Zealand. The...
by Munro Benge | Jan 31, 2018 | Anti-Money Laundering
Money laundering is big business in New Zealand. Every year $1.35 billion of fraud- and drug -related money is laundered through seemingly legitimate businesses. In response, the Government introduced specific Anti-Money Laundering and Countering Financing of...
by Munro Benge | Jan 31, 2018 | GST, Newsletters
IRD into Stage Two of Business Transformation IRD’s been working hard to be easier to do business with. As you read this, its new tax system is kicking in, giving you new and simpler ways to manage your GST obligations through myIR. Enhancements include the...
by Munro Benge | Dec 12, 2017 | Newsletters
Season’s greetings! Thank you for all your support this year. Our office will be closed from midday 22 December 2017 and re-opening on the 8 January 2018 although some people will still be away on leave. If you have any urgent issues over that period, please call the...
by Munro Benge | Dec 12, 2017 | GST, Newsletters
Provisional tax and GST are due on 15 January. The timing of these payments isn’t ideal as many of you will be indulging in the delights a summer break offers. But it’s important that you don’t neglect your tax obligations – especially as Inland Revenue will charge...
by Munro Benge | Dec 12, 2017 | GST, Newsletters
Are you planning a Christmas event for your clients? Is gift-giving on your to-do list? Take a minute to refresh yourself on what is deductible as a business related expense. Presents Are you thinking of gifts for clients, business associates or team members? If gifts...
by Munro Benge | Nov 13, 2017 | Newsletters
If you have an excellent reputation as an employer, your productivity and profit should benefit. The thing is, though, a reputation like this comes from what you believe and show. It may require some creativity. Read our feature in this month’s newsletter to...
by Munro Benge | Nov 13, 2017 | Newsletters
Getting a job at Google is reportedly 10 times harder than getting a place at institutions like Harvard or Yale. The company employs 7000 people a year, from 3 million applicants. Google has staff friendly initiatives that attract top candidates. Your business may be...
by Munro Benge | Nov 13, 2017 | Newsletters
You may provide company vehicles to some employees. In some cases, the vehicle is a work tool – for example, a ute for a project manager. In other cases, it is part of a salary package. Whatever the reason, Inland Revenue has good news and bad news. The good news is...
by Munro Benge | Nov 13, 2017 | Newsletters
Fifty years ago, farmers and others sprayed toxic chemicals onto weeds in blissful ignorance of the need for personal protective equipment. How things have changed! Today, regulations govern the handling and use of all hazardous substances. And, like many other safety...
by Munro Benge | Nov 13, 2017 | Newsletters
Tax authorities around the world are increasingly working together to winkle out tax evaders from their overseas hiding places, and who can blame them? Our increasingly interconnected world makes it easier than ever for people to hide money overseas – and evade tax....
by Munro Benge | Nov 13, 2017 | Newsletters
A large percentage of audit targets used to be selected randomly. Time has certainly moved on and Inland Revenue (IR) now has much more sophisticated methods of targeting non compliers, through methods such as ‘data mining’. For example the Land Information New...
by Munro Benge | Oct 11, 2017 | Newsletters
New Zealand is a “standout nation” according to the latest Digital Evolution Index, released by Tufts University in Boston in July. The report, by the university’s The Fletcher School, identifies New Zealand as among the digital elites, having high levels of digital...
by Munro Benge | Oct 11, 2017 | Newsletters, Trusts
Parliamentary plastic surgery is in store for the Trustee Act, to make trust law easier to access and understand. On 1 August, Justice Minister Amy Adams introduced the Trusts Bill to Parliament. This will be the first significant change since the introduction of the...
by Munro Benge | Oct 11, 2017 | GST, Newsletters
Do you hate it when GST return time rolls around? If so, you’re in good company. For many business owners, the pain isn’t so much having to hand money over to IRD, but having to prepare and file a return. But that pain is easy to avoid. Here’s how: If we complete your...
by Munro Benge | Oct 11, 2017 | Newsletters
While it’s easy to think of business culture as a bit soft compared with, say, achieving sales, in fact it’s anything but. A 2014 study reported that public companies named in a “Best Places to Work” list in 2009 outperformed the S&P 500 by 115 percent in the...
by Munro Benge | Oct 11, 2017 | Newsletters
Revenue Minister Judith Collins recently said that correcting simple tax errors and sending that information to Inland Revenue was still largely manual and may be costing business. Here’s some good news. Inland Revenue proposes integrating PAYE into normal business...
by Munro Benge | Sep 11, 2017 | Newsletters
If you use Airbnb to provide short-term accommodation in your house in which you also live, the IRD’s “mixed-use asset (holiday home)” rules don’t apply and guests are not classed as boarders. Except when you list a whole house which is vacant for 62 days each year,...
by Munro Benge | Sep 11, 2017 | Newsletters
If you rent out your holiday home sometimes, you may have to pay tax on that income. The IRD says you have a “mixed-use” holiday home if, during the tax year, you use it for: Private use, and Income-earning use, and It’s unoccupied for 62 days or more. It is still...
by Munro Benge | Sep 11, 2017 | Newsletters
If you receive income, you must pay tax. So if you have rental income, you have to pay tax on it, right? Maybe, maybe not – if you get rent from boarders or homestays. Boarders and homestays When you get income from boarders or homestays, your tax position depends on...
by Munro Benge | Sep 11, 2017 | Newsletters
Sometimes boats and aircraft are used for private and commercial purposes. In such cases, the income from their use may be liable for tax. Boats and aircraft (valued at more than $50,000) become mixed-use assets if they are used privately sometimes, and commercially...
by Munro Benge | Sep 11, 2017 | Newsletters
A threshold for reportable tax debt is now in effect, giving creditors greater protection from businesses owing debts of more than $150,000. The IRD is now allowed to disclose to certain credit reporting agencies, information about companies with significant tax debt....
by Munro Benge | Aug 15, 2017 | Newsletters
If you want to succeed in business, understand that Cash is King. Your business can’t survive without cash. The following six takeaways are essential for business success: Protect your cash position, by knowing what it is. Build a cashflow statement and always keep it...
by Munro Benge | Aug 15, 2017 | Newsletters
The purpose of a business is to make money, and that means you have to know the difference between profit and cashflow. Net profit is what you have left after you deduct all your business expenses from all your revenue. You change net profit only by changing the...
by Munro Benge | Aug 15, 2017 | Newsletters
A tax bill passed in May made changes that affect cashflow. Companies get more choice with RWT From 2017-18, companies can choose to not deduct resident withholding tax on a fully imputed dividend paid to a corporate shareholder. A fully imputed dividend has a tax...
by Munro Benge | Aug 15, 2017 | GST, Newsletters
A key principle of the tax system is taxpayers should pay tax as income is earned. That doesn’t work well for businesses with seasonal or volatile incomes, and is why the Government announced, early this year, a new method for paying provisional tax. The Accounting...
by Munro Benge | Aug 15, 2017 | Newsletters
Taxpayers who earn income from various sources may get caught short if they don’t plan ahead. This could come about in various ways: Airbnb Overseas investment Shares in an overseas company Airbnb income If you rent rooms or homes through Airbnb, you may not realise...
by Munro Benge | Aug 15, 2017 | Newsletters
The way contractors pay tax changed on 1 April, giving greater choice, and making it easier to get tax right. The rules around schedular payments have changed to allow this, and are compulsory for all contractors hired by a recruiter — or other labour hire business —...
by Munro Benge | Aug 15, 2017 | Newsletters
Changed Research and development (R&D) tax credit rules, which came into effect at the start of the 2016 income year, can help business cashflow. The R&D Tax Credit regime allows a “cash out” of an organisation’s R&D tax losses. The cashed-out amount...
by Munro Benge | Oct 11, 2018 | GST, Technical Updates
In a test case involving stakes payments in the racing industry, the High Court has held that the Canterbury Jockey Club Inc (the Club) was entitled to GST input tax deductions for stakes payments paid to GST-registered trainers and jockeys in horse races conducted by...
by Munro Benge | Oct 9, 2018 | Technical Updates
The High Court has held that the taxpayer failed to establish that debts were written off as bad at the relevant time or that the debtors were released from making all remaining payments by law. The taxpayer also failed to establish that he carried on business for the...
by Munro Benge | Oct 5, 2018 | Technical Updates
On 3 October 2018, the Government announced the design of the research and development (R&D) tax incentive following extensive consultation with business. The key features of the R&D tax incentive include: a credit rate of 15% a $120 million cap on eligible...
by Munro Benge | Oct 5, 2018 | Technical Updates
The Social Security Act 2018 (No 32 of 2018) received the Royal assent on 28 September 2018 and mainly comes into force on 26 November 2018. The Social Security Bill (now the Social Security Act 2018) was formerly part of the Social Security Legislation Rewrite Bill...
by Munro Benge | Oct 3, 2018 | Technical Updates, Trusts
The High Court has held that annual forgiveness of debts to a charitable trust are monetary gifts paid to that charitable trust and as such qualified as charitable gifts. The background On 14 October 2007, Mrs Roberts and her late husband jointly established the Oasis...
by Munro Benge | Oct 3, 2018 | Technical Updates
The High Court has upheld the second deregistration decision made by the Charities Registration Board (Charities Board) in relation to the charitable status of Family First New Zealand (Family First). Family First’s appeal from this deregistration decision was...
by Munro Benge | Oct 2, 2018 | Technical Updates
The government released the discussion document on the 26 September 2018, “Targeting serious crime: extending information sharing”, calling for public submissions on proposals to extend an existing information sharing agreement between Inland Revenue and the New...
by Munro Benge | Sep 13, 2018 | Technical Updates
On 30 August 2018, Inland Revenue released Commissioner’s Statement: “Determining ‘market rental value’ of employer-provided accommodation — boarding schools”. In Commissioner’s Statement CS 16/02, the Commissioner provided guidance to assist taxpayers in estimating...
by Munro Benge | Sep 12, 2018 | GST, Technical Updates
The Taxation Review Authority (TRA) has dismissed a taxpayer’s challenge and confirmed the Commissioner’s assessments relating to PAYE obligations and income tax and GST liabilities. The background Between 1972 and 1994, the taxpayer was a sole trader trading as XYZ....
