by Munro Benge | Jun 7, 2018 | June 2018
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 | June 2018
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 | June 2018
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 | June 2018
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 | April 2018
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 | April 2018
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 | April 2018, June 2018, May 2018, September 2017, October 2017, November 2017, December 2017, March 2018
Things to do this month By now you should be thinking about whether you have all the information you need to give us to complete your annual accounts. If you haven’t, put getting the information together to give to us at the top of your to-do list. Run your eye over...
by Munro Benge | Apr 12, 2018 | April 2018
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 | April 2018
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 | April 2018
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 | March 2018
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 | March 2018
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 | February 2018
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 | February 2018
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 | February 2018
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 | February 2018
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 | December 2017
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 | December 2017
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 | December 2017
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 | November 2017
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 | November 2017
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 | November 2017
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 | November 2017
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 | November 2017
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 | November 2017
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 | October 2017
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 | October 2017
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 | October 2017
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 | October 2017
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 | October 2017
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 | September 2017
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 | September 2017
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 | September 2017
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 | September 2017
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 | September 2017
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 | 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 | Jul 4, 2018 | July 2018
The Best Start tax credit (BSTC) is a new component of Working for Families Tax Credits (WIFTC). It is a payment to help families with the costs in a child’s first three years. It is available for all qualifying families with children due or born on or after 1 July...
by Kelly Smith | Jul 2, 2018 | Newsletters
On 28 June 2018, the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Bill (72-1) was introduced into Parliament. The Bill proposes modernising the revenue system by making tax simpler and easier for individuals and simplifying...
by Munro Benge | Jul 2, 2018 | Newsletters
On 26 June 2018, Inland Revenue released two Questions We’ve Been Asked (QWBA) explaining when a parent’s payment to a school will be a gift so that the school can issue a donation tax receipt to the parent. Also released was a public ruling relating to goods and...
