Taxing Matters – October 2012

Taxing matters provides a summary of topical tax information relating to individual tax and business taxation.

Parental Leave Payment
Eligible employees or self-employed persons taking parental leave are entitled to the parental leave payment paid by the government. The payments are for a maximum of 14 weeks; the maximum payment is $475.16 a week before tax.

Individual Tax Rates
The individual tax rates for the current tax year (1 April 2012 to 31 March 2013) are income up to $14,000 – 10.5 %, 14,001to $48,000 – 17.5%, $48,001 to $70,000 – 30% and $70,001 and over 33%.

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No Matter How Much Things Change, Two Certainties Remain

It’s been 40 years since I qualified as a Chartered Accountant and in that time we’ve seen some changes.

Back then we worked at desks, not work stations. Most people had their own office and, although it’s unthinkable today, smoking in the office was commonplace. There were neither computers nor faxes, not even photocopiers. Instead we used mechanical adding machines.

Accounts were typed using carbon paper. Tax returns were typed or hand written and posted to the IRD. IRD numbers did not exist, nor did ACC, GST or FBT, but we knew about accounting for Estate Duty, Land Tax and Excess Retention Tax.

West Auckland was populated by orchards and vineyards.  West City Mall hadn’t yet made it to the drawing board. It was a toll call from Henderson to Auckland, and a 20 cents toll (tax deductible) to cross the harbour bridge.  You couldn’t pay by credit card or EFTPOS. All transactions were cash or cheque including payroll which were generally paid weekly in cash.

It’s hard to imagine now but housing interest rates peaked at 22%.


UHY Haines Norton Audit Moves to Paperless Environment

Audit Partner Sungesh Singh on moving to a paperless audit environment:

Sungesh Singh - UHY Haines Norton Audit

After relying on traditional paper based processes the audit division of UHY Haines Norton has left the past behind by adopting a paperless environment for its audits. To enable us to make the progression to a paperless environment we have recently implemented a CASEWARE paperless audit system and are already experiencing efficiency gains.

The audit process is enhanced by adopting electronic processes by improving the quality, quantity, timeliness and effectiveness of audits.  Moving to a full electronic environment enables us to provide prompt and comprehensive reporting at the conclusion of an audit including reporting on internal control weaknesses and potential fraud and error issues.

Amnesty International was the first audit that we completed using the Caseware methodology and we were delighted with how smoothly and effectively the audit went.