Industry Advice on Finance, Business & Tax for the New Zealand Market

As the end of the tax year approaches, it's essential to prepare your income tax return promptly to avoid late filing penalties. While the process may seem overwhelming, proper planning and information can streamline it significantly. This article outlines key recent tax changes that may impact your filing, helping you navigate your obligations efficiently and effectively.

With the temperature continuing to rise around the world, it is important for everyone to do their part. The carbon trading system is part of the New Zealand Government’s Emissions Trading Scheme (ETS) and provides a unique opportunity for businesses to reduce their carbon footprint and address the impacts of climate change.

Ring-fencing of rental losses refers to new tax regulations that prevent investors from offsetting residential property losses against their other income, such as salaries or business earnings. Instead, if rental deductions exceed income, these losses will be carried forward to offset future residential property income until fully utilised. This article explores the implications of these changes for property investors and offers insights into effective financial strategies in light of this legislation.

The current economic environment presents challenges for individuals and businesses, impacted by the COVID-19 pandemic and rising living costs. Despite this, many are still looking to innovate and upgrade technology and vehicles. Key questions include whether to buy or rent and how to fund these purchases. This article explores these leasing options and provides insights into making informed financial decisions.

We examine the intricacies of entertainment expenses and fringe benefit tax (FBT) in New Zealand, highlighting key considerations for businesses. It clarifies what qualifies as taxable benefits, offers practical tips for managing FBT obligations, and explores strategies to maximise tax deductions. Understanding these elements is essential for businesses aiming to optimise their tax position while ensuring compliance with relevant regulations.

In today’s evolving business landscape, ensuring proper compensation for shareholders and employees is crucial. This article explores the two main payment methods for business shareholders: shareholder salaries and PAYE (Pay As You Earn). It highlights the advantages and challenges of each, helping you choose the option that best suits your circumstances and optimises compliance and financial benefits.

Navigating the complexities of estate planning can be as challenging as a bobsledder's training run, with unexpected twists that could lead to difficulties. In the second part of this series, we delve into the intricacies of ensuring a fair and equitable distribution of assets to beneficiaries after a loved one's passing.

While we often hear that death and taxes are certainties in life, the lack of clear guidance on managing the complexities that arise after a loved one's passing is striking. This article sheds light on the often-overlooked aspects of estate planning and the importance of proactive preparation, helping to ease the burden for those left behind.

The Inland Revenue Department's recent report on the Fringe Benefit Tax (FBT) regime evaluates its regulatory stewardship under the Public Sector Act 2020. This review analyses the current structure and functionality of the FBT system while assessing its future adaptability to evolving business environments over the next 5 to 10 years.

With inflation rising and impacting every aspect of daily life in New Zealand, businesses must carefully monitor cash flow to navigate increasing costs. By managing outflows effectively and optimising spending, companies can better weather economic uncertainty. This article provides key strategies to help businesses safeguard their financial health and maintain stability in challenging times.

The shareholder’s current account is often one of the most important financial accounts in a company, yet many business owners are unsure of how it works. This guide simplifies the key concepts and provides clarity on how to manage your account effectively, especially in cases where the company owes you money or you’ve withdrawn funds.

Budget 2022 saw funding dedicated to the Research and Development Tax Incentive (RDTI). With Callaghan Innovation Limited and the Inland Revenue Department working together to evaluate entitlement upon review, the RDTI operates as a tax credit to incentivise businesses and individuals who perform R&D activities that are carried on in New Zealand.