Leased apartments and GST

Some investors have purchased apartments with a guaranteed rental income by virtue of it being leased to a management company. As a result, this makes the leased apartment a going concern i.e. the apartment is considered an active business with an active lease to a management company. And because it is purchased as a going…

Important changes from 1 April 2014

Foreign Superannuation (or Pension Fund) New rules relating to taxability of receipts from overseas pension funds (other than Australian Superannuation) kick in from 1st April 2014. They need to be disclosed and included in NZ tax returns. The tax regime relating to these receipts is complex and taxation can vary from 4.76% to 100%. However,…

Planning Ahead

Did your New Year’s resolutions include making significant changes, gaining control over, or simply maintaining your business in its current form? If so, putting a plan in place will help you think through the critical aspects of your business and help you to make good decisions in the year ahead. Like a map, a plan…

Buying and selling land – the taxpayer loses

The Taxation Review Authority (TRA) has recently heard a case involving a Trust that had been buying bare land, building houses and then selling them but not treating the proceeds as taxable.   The Trust itself comprised three trustees, Mr and Mrs B, and their solicitor who acted as an independent trustee. Over a 12…

Deferring your income for tax purposes

As the amount of income tax you have to pay is determined on an annual basis it is important to ensure items of income are allocated correctly to a particular year. Although common sense will get the right answer in most situations, being aware of some of the concepts around this topic could help you…

Year end chores

For many businesses, 31 March is an important date because it is the end of their financial year, and it is the last day their accountant has to file their prior year’s tax return. To make the year end process as smooth as possible (at least from a tax perspective), a few “to dos”, along…

Paying tax on losses

Generally speaking it makes sense for tax to be paid on profits, but is it fair that tax should be paid on losses… Within New Zealand’s tax legislation there is a set of provisions called the financial arrangement rules. These rules basically identify gains and losses that arise on certain financial instruments (such as interest…