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

In 2015, the Tax Department introduced a ‘bright-line test’ for the sale of residential property. If you buy and sell a property within two years, this test is used to determine if you are required to pay tax on the profit. We explain how the bright-line test works and the responsibilities of residential property owners.

Property taxation is currently a hot area of focus for the Tax Department. If you’re buying, selling or renting property in New Zealand, it’s important to understand how property taxation works and your responsibilities as a business owner.

If you are moving to New Zealand, or are returning to New Zealand from overseas, then you could qualify for the transitional tax resident exemption. We explain what this means and how it impacts your tax obligations.

As the tax landscape continues to change with increased complexity of tax regulation both domestically and overseas, the management of tax is fast becoming a necessary part of today’s advisory board agendas. Graham Lawrence gives some important advice to business owners who want to get it right.

Many businesses overlook the importance of Fringe Benefit Tax (FBT), risking profitability due to compliance errors. Proper FBT treatment is a strategic responsibility for business leaders, especially as recent Tax Department reviews signal stricter enforcement.

Before you consider raising equity, it’s important to get your finances in order. Here are ten questions to ask yourself to help determine the financial health of your business.

You’re ready to approach investors and apply for business funding… or are you? Sometimes in business, you have to jump in feet first and learn to swim as you go. Other times, it pays to do some research before you take a leap of faith. Raising capital usually falls under the latter. You might only get one chance to impress potential investors or lenders, so you want to walk into these discussions confident and maximise your chances for funding.

Businesses with strong balance sheets are more likely to survive economic downturns and be ready to thrive when the going gets good again. So what does a strong balance sheet look like, and how can you take steps to strengthen yours?

Keeping the balance sheet “out of the red” is a top priority for any business owner. To do this and “stay in the black”, it’s important to be regularly scanning the horizon for any signs that you could be heading towards rough financial waters. There several indicators of potential financial trouble.

The 2016 Taxation Act introduces a provision allowing companies involved in intensive R&D to cash out tax losses tied to research expenditures. This aligns with the government’s Business Growth Agenda, aimed at promoting innovation as a key driver for economic progress.

How should I spend my net profit? This is a question most business owners grapple with when their business starts to run at a profit.

At a time when the tax landscape continues to change, it appears an old established rule dating back to the 90’s has become one of the focuses of the New Zealand Tax Department’s current compliance programme.