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

We look at the Government's draft legislative proposals with respect to limiting the deductibility of interest expense for residential property investments and a number of changes to the bright-line rules.

Today the Prime Minister announced a huge package of policies aimed at increasing housing affordability that includes changes to the bright-line test and interest deductions on investment property.

Reading the 194-page interim report from The Tax Working Group (TWG) - a culmination of months of work reviewing submissions - here are our first impressions...

Most people want to pay their fair share of tax, but the complexity of tax continues to evolve where even the simplest of mistakes can cost you dearly in penalties and interest – given the increased funding the Inland Revenue Department will receive you need to ensure you have your tax affairs in order.

Since 2017, Inland Revenue has had a dedicated audit team for Fringe Benefit Tax (FBT). Though FBT is a small part of tax revenue, it’s now a key audit focus, making compliance and accurate tax positions more important than ever.

Effective KPI reporting is built on transparency, accountability, and comprehensive communication. It can help businesses to reduce costs, identify new opportunities, and make better decisions. It provides an opportunity for staff at all levels of a business to reflect on their performance and, if required, take actions that improve the overall performance of the business.

Family. Gifts. Carols, baubles, tinsel on the tree. When it comes to Christmas time, these are the things that most Kiwis are going to be thinking about—but there’s one more thing that business owners need to keep in mind over the Season of Giving: how much they should be giving to their employees in pay over the holidays.

A major rewrite of New Zealand trust law is underway, and your trust could be impacted. IRD is scrutinising trusts with questionable commercial logic but favourable tax outcomes, while proposed law changes aim to give beneficiaries more visibility into trust activities and the income being generated.

Company cars often come under extra scrutiny during the Christmas period, especially when used privately. Understanding how Fringe Benefit Tax (FBT) applies during holidays is essential to avoid unexpected costs. This article explains key FBT rules, exemptions, and how to stay compliant when company vehicles are used over the festive season.

‘Tis the season of giving! But if you’re planning to give your clients and/or employees a present this year, you should temper your generosity of spirit with the correct tax treatment of gifts for employees. After all, you wouldn’t want the IRD to put you on its naughty list… here’s what you need to know:

Selecting the right KPIs for your business is an important part of achieving your strategic goals. However, with the masses of data available to businesses in the digital age, it can be difficult to know which KPIs will deliver the most value.

A familiar scene: you’re on your way to a board meeting alongside your C-suite. You and your team have formulated a plan that could revolutionise the business, but you need board approval to get started...