Showing posts under "Tax"

IRD compliance activity in relation to bright-line test

Dated: July 19, 2018

Inland Revenue is sending letters to taxpayers who have sold land that they have owned for less than two years. The letter suggests that unless the property was the taxpayer’s main home for 50% of the time they owned it, the taxpayer may need to pay tax on the sale proceeds. The letter includes aContinue reading 

Extension of Residential Land Bright-line Rule

Dated: June 28, 2018

The bright-line period for the residential land bright-line test has been extended from two years to five years. The bright-line test taxes a sale of residential land when the sale occurs within the bright-line period. Before this change, the bright-line period was the two-year period beginning on the date the title to property was registeredContinue reading 

Understanding your profit

Dated: June 28, 2018

Survey results from participants that attended our recent cloud accounting seminars series, reported that the main item they would like assistance with is “understanding financial statements”. Given financial statements are produced at least annually (if not more frequently), business owners should in theory understand and be able to interpret their meaning. Piecing together the meaningContinue reading 

Do you have Australian Investments? You may have Australian tax obligations

Dated: June 28, 2018

As you may be aware New Zealand has entered into an Automatic Exchange of Information Agreement with approximately 100 other countries, including Australia.  This results in information being shared by “financial institutions” with the relevant tax authorities.  The first round of information is being shared later this year. If you have investments in Australia (otherContinue reading 

New Hybrid and Branch Mismatch Rules

Dated: June 15, 2018

The Taxation (Neutralising Base Erosion and Profit Shifting) Bill also introduces rules to address hybrid and branch mismatch arrangements that arise with cross-border arrangements that exploit differences in the tax treatment of an instrument, entity, or branch under the laws of two or more countries. A hybrid or branch mismatch arrangement can result in aContinue reading 

Changes to Thin Capitalisation Calculations

Dated: June 15, 2018

The Taxation (Neutralising Base Erosion and Profit Shifting) Bill contains a number of amendments to New Zealand’s tax laws designed to prevent multi-nationals lowering their exposure to New Zealand income tax. Among those changes are changes to the thin capitalisation rules. One proposed change is for “Total Assets” to be calculated net of “Non-Debt Liabilities”.Continue reading 

BUDGET 2018: A mixed bag for New Zealand

Dated: May 17, 2018

As expected, the 2018 Budget had little in the way of new tax announcements with most of the changes previously announced and, in some cases, already enacted. The Budget includes an extra $6.8 million for Inland Revenue to “crack down on tax dodgers” – whatever that means – with this activity expected to raise $183Continue reading 

GST on Imported Goods – The “Amazon tax”

Dated: May 17, 2018

The Government has announced its intention to introduce GST to low-value imported goods from 1 October 2019.  The so-called “Amazon tax” is not a new tax as such, but it is a change to the existing GST rules. The proposal mimics the changes made to the GST rules to make imported digital services subject toContinue reading 

Proposed R&D tax credits – back to the future?

Dated: May 17, 2018

In pursuit of its policy to encourage businesses to invest more in research and development (R&D), the Government has released a public discussion document on proposals for implementing tax incentives for R&D. The discussion document proposes the introduction of a tax credit for eligible R&D. The last Labour Government introduced what proved to be aContinue reading