Taxing Matters: June/July 2017

A summary of the latest tax changes relating to individuals and businesses. The government has now set a threshold for reportable tax debt. After extensive consultation, a recent Order in Council has set a threshold of $150,000, meaning that a company’s tax debt over this amount may be disclosed to certain credit reporting agencies. If…

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Taxing Matters: December 2016

Previously, we advised that business gifts to customers comprising of food and drink were 100% tax deductible for income tax purposes. However, Inland Revenue have now changed their position on the classification of these items. As of 1st September 2016, gifts of food and drink are now classed as ‘entertainment expenses’ and are therefore only…

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Check Your PIR Every Year

The Prescribed Investor Rate (PIR) is the tax rate that is applied to the taxable investment income earned on your savings under Portfolio Investment Entities (PIEs). Typically your KiwiSaver investments will be PIEs. Favourable tax rates were applied to PIEs when they were created several years ago in order to encourage New Zealanders to invest…

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The Beginner’s Guide To The Property Bright-line Test

Parliament has recently passed legislation requiring greater disclosure for New Zealand property transactions. Refer to our article “‘New Property Rules Took Effect on 1 October 2015: What Should Buyers and Sellers Be Aware of Now?” for more information about the new disclosure regime. As well as requiring further disclosure for property transactions, Parliament is proposing…

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