Agriculture News: April / May 2014

 

  • Dairy milk prices have dropped for the fifth consecutive time in a row, which hopefully will contribute to the decision to leave interest rates where they currently are.  As farmers selling our produce, the last thing we need is high interest rates equating to a high dollar.  On the counter side of this argument, the housing demand – especially in Auckland – is still significant, as are the increasing numbers of new immigrants to New Zealand and the building boom commencing in Canterbury.
  • Stock prices appear to be holding despite the drought some of us have experienced in recent months.  Weaner prices appear to have been a mixed bag with good lines selling well at the fares, however lower to middle of the range stock was marginal.  Dairy cow prices also appear to be consistent with the previous year, despite the record Fonterra pay out.
  • Now is the time for regressing and getting ready for the winter months, and here’s hoping for another mild winter like most regions experienced last year.
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SMEs: The Important Role of Internal Control Reviews

Consideration of an entity’s control environment is often regarded as the domain of large entities such as publicly listed companies or government departments. While the control environment of a small or medium-sized entity (SME) may differ from that of a large organisation, it is equally important that it is reviewed regularly in order to ensure the effective management of risks which may change with the business.

In the context of SMEs, the effectiveness of the management of risks in the control environment is determined by the attitude, actions and awareness of business owners and management towards the internal control system and their perceived importance of it to the SME’s overall objectives. The control environment sets the tone and culture of an organisation. 

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Industry Benchmarks

In conjunction with Statistics New Zealand, the IRD provides industry benchmark figures for a range of industries.  The benchmark figures enable small to medium-sized enterprises to compare their performance against industry benchmarks. Forty-five industry benchmarks are available, including accommodation and food services, retail, manufacturing and construction services amongst others. The industry benchmark information can be…

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UHY Strengthens Presence in Western Asia

UHY Haines Norton welcomes new member, Abdul Jabber Certified Accountants and Consultants Office in Saudi Arabia, to the global accountancy network UHY, of which our firm has been a member since 2004.

Abdul Jabber Certified Accountants and Consultants Office was established in 1992. The firm’s head office is based in Jeddah with a branch in Riyadh.  The firm provides accounting, audit, tax, consulting and specialised IT services for a portfolio of clients in the private and government sectors.

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Introducing Capital Gains Tax Into New Zealand

UHY Haines Norton Managing Director Grant Brownlee considers the implications of a Labour government introducing Capital Gains Tax.

We recently asked Labour’s Phil Twyford, MP for Te Atatu, whether Labour would introduce a Capital Gains Tax (CGT) if they are elected.  Phil indicated a CGT would be introduced within the first 100 days of their first term.

So what might a CGT look like in New Zealand?  To provide an answer to that question I thought it would be a good idea to look across the Tasman and pose a few questions to Bill Charlton, a Partner from UHY Haines Norton in Brisbane.

Question 1: When CGT was introduced into Australia, what impact did it have on the property market?

When CGT was introduced, and in its first one or two years, it had very little influence on the property market at all.  There were two main reasons for this.  First, prior to the introduction of CGT, Australia already had a system of taxing property transactions where the property was sold within 12 months of its purchase.  This was deliberately done to eliminate any debate about whether a sale was of a revenue nature (and taxable) or of a capital nature (and not taxable).  So, short term property transactions were already caught in the tax net.  Investors were aware of this tax and had already taken it into account.  The CGT rules merely replaced these existing rules and CGT had no impact at all on short term sales.

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Staff News: February / March 2014

Congratulations to Sanjana Govind, currently on maternity leave from our Audit department, who welcomed her gorgeous baby boy Arnaav on 10th January 2014.     Congratulations also to Audit team member Hema Lallubhai, who married Deelan Sital on 19th January 2014 in a beautiful traditional Hindu wedding ceremony at BAPS Shri Swaminarayan Temple in Avondale.…

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