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...
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Removal of Tax Credits Three tax credits have been repealed effective from the 2013 income year.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...
One of the most difficult decisions to make as a business owner is how much to charge for your products. There is often a reluctance to review pricing because of the fear of upsetting existing customers or due to a lack of time. However, there are several actions you can take to make your pricing...
The Government has introduced a Bill into Parliament that will limit taxpayers’ ability to claim a tax deduction for costs associated with mixed-use assets, i.e. assets that are used both privately and rented to third parties, for example baches and boats. When enacted, the new rules will apply from 1 April 2013. The new rules...
In an effort to reduce uncertainty regarding the tax treatment of employee reimbursements and payments for meals, accommodation, communication and clothing, the IRD released an officials’ issues paper in November 2012. The IRD is seeking feedback on proposals to introduce legislation specifically pertaining to these types of expenditure. Meals Employee meal costs when travelling for...
When a landlord makes a payment in cash to induce a tenant into signing in to a lease, the payment is usually deductible to the landlord. Under the existing rules, a lease inducement payment received by the tenant is non-taxable. This was confirmed in a ruling by the Privy Council case in CIR v Wattie (1998)...
Deductibility of expenses on rental properties is quite clear but not so with properties partially used for private purposes, such as “baches” or holiday homes. Taxpayers often want to claim partial deductions for expenses (interest being the largest) for the period holiday homes are let out. Until recently, the Inland Revenue had allowed the property...
Investment in real estate, especially residential properties, remains a popular choice of investment. One can see why it is attractive to New Zealand taxpayers — For one, there is no capital gains tax on the eventual sale of the property and land tends to appreciate with time; The current rate of after-tax return on fixed-term...
© Knobloch & Associates Ltd, 2024.
Designed and Maintained by Nika Consulting Group Ltd.
© Knobloch & Associates Ltd, 2024.
Designed and Maintained by Nika Consulting Group Ltd.
