Cash Basis Persons Rule

The IRD has recently broadened the scope of “cash basis persons” to include all entities (including companies and trusts) subject to certain thresholds not being exceeded. Previously companies and trusts were required to accrue income earned but not received at 31 March 2009 (or at balance date for non standard balance dates). Provided company’s and…

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Employee Tax Deductions

Employees are generally not able to claim any expenditure against their salary and wages, however there are two common exceptions to this as follows:

  1. Expenditure incurred in preparing a tax return is deductible, including for salary and wage employee
  2. Insurance premiums relating to income protection insurance are deductible including for salary and wage employees.

 

Private Boarders

If you have four or fewer private boarders living in your home and the income received from the boarders is below the thresholds stipulated by the IRD you do not need to return the boarding income received in your tax return. The IRD thresholds are as follows: If you have either one or two borders…

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