The idea of retiring at a ripe old age free from financial pressures is a pleasant vision for many. As the benefits of saving for retirement are recognized globally, it is becoming more common for individuals to migrate to New Zealand with superannuation funds from their previous country of residence. Generally, once an individual is...
The 2013 Budget continued the recent pattern of making small changes to New Zealand’s tax framework, which implies the Government is broadly happy with how it is operating. The changes that were announced are intended to strengthen the tax base and support the business environment. A brief overview of the proposed changes is provided below....
Two employment law cases received considerable media attention recently and highlight how employment dispute stories have become very newsworthy. Both involved employers who dismissed employees for reasons either wholly or partly attributable to reputational damage. This should serve as a reminder to other employers to be concerned about the potential implications of this sort of...
The Court of Appeal recently ruled against Alesco NZ Ltd (a wholly-owned subsidiary of Alesco Corporation, an Australian company) regarding their use of optional convertible notes (OCNs) to fund a business acquisition. In simple terms, the OCN is a form of loan subject to a zero percent interest rate that could be exchanged for shares...
One would be forgiven for thinking that the Government’s recent back down on charging FBT on carparks located in the Auckland and Wellington CBDs means that the status quo remains. However, the draft legislation as it was introduced includes four proposed changes that would see FBT apply when: Carparks are provided in the Auckland and...
The Trustees Act 1956 (‘The Act’) forms the basis of New Zealand’s trust law. Given the age of the Act, it can be difficult to interpret and apply in today’s environment, which has arguably led to an increase in the number of court disputes. The Law Commission has been asked to review the Act and...
Multi-nationals such as Starbucks, Apple, and Amazon have been under the spotlight lately due to the low amount of tax they pay in comparison to their total earnings. For example, Google reported that it paid US$248 million in taxes on foreign income of US$7.633 billion. However, it is difficult to discern from mainstream media reports...
The minimum contribution rate for employers and employees will increase from two percent to three percent of gross salary or wages from the first pay period commencing on or after 1 April 2013. Employers will need to change the contribution rates for existing KiwiSaver members if the employee’s contribution rate is two percent. If the...
Removal of Tax Credits Three tax credits have been repealed effective from the 2013 income year. These are: tax credits for income under $9,880, childcare rebates and housekeeper rebates. Taxpayers will still be able to make claims for the above for the 2012 tax year and previous years. Student loan voluntary repayment bonus removed Effective...
Taxpayers may/may not be aware that a further nine categories of “income” are included in addition to a person’s taxable income to calculate the Working for Families Tax Credits (WFF) from the 2012 income year. These are: Attributable trustee income; Attributable fringe benefits; PIE income; Passive income of children; Income of non-resident spouse; Tax-exempt salary...
© Knobloch & Associates Ltd, 2024.
Designed and Maintained by Nika Consulting Group Ltd.
© Knobloch & Associates Ltd, 2024.
Designed and Maintained by Nika Consulting Group Ltd.
