[fsn_row][fsn_column width="12"][fsn_text] As businesses expand, a common decision is whether to create new companies to accommodate new ventures, risks, products and/or acquisitions. A well-designed group structure enables a ‘parent’ company to create distinct entities that operate independently. This approach has several benefits - it provides flexibility as it allows control and visibility over each entity's [...]
[fsn_row][fsn_column width="12"][fsn_text] After the introduction of the Trust Disclosure rules in March 2022, in November 2023 Inland Revenue released a high-level summary (in the form of a 40-page report) of insights from the first year of reporting. While tax advisors and clients alike may have begrudgingly completed the disclosures initially, the statistics may prove to [...]
[fsn_row][fsn_column width="12"][fsn_text] The Working for Families Tax Credit (WFFTC) is a notoriously complex scheme when it comes to determining eligibility and quantifying entitlement. This leads you to wonder how well the scheme is policed by Inland Revenue, and whether fraud is able to ‘fly under the radar’. Accordingly, it was heartening to see a case [...]
[fsn_row][fsn_column width="12"][fsn_text] The concept of what is a “dividend” is very broad and starts with the default proposition that any transfer of value from a company to a shareholder is a dividend. That concept includes the simple scenario of an interest free loan to a shareholder or a person associated to a shareholder; which can [...]
[fsn_row][fsn_column width="12"][fsn_text] Sitting back at your desk after a month of busy family time or relaxing beach days, business owners and executive teams should start to think about not only the year ahead, but the long-term viability of their businesses. With rapid changes and multiple existential threats impacting different businesses in different ways, it might [...]
[fsn_row][fsn_column width="12"][fsn_text] For 99.9% of the time, New Zealand companies are incorporated to operate a business and derive income. On establishment, the focus tends to be on items such as: whether a company is the appropriate vehicle, e.g. does limited liability protection warrant it; who should own the shares, e.g. in personal names or in [...]
[fsn_row][fsn_column width="12"][fsn_text] As increasing interest rates have bitten and with industry sectors such as retail and construction not performing as strongly, some businesses are struggling. As the end of the financial year approaches, now is a good time to assess whether any of your accounts receivable need to be written off as ‘bad’. This is [...]
[fsn_row][fsn_column width="12"][fsn_text] Important update: Trustee tax rate increase. We regret to inform you that the new Government has reinstated the bill which will increase the trust tax rate from 33% to 39% on 1/4/2024. After much delay and speculation, this new tax threshold is now a certainty. Clearly the Government finances are in terrible shape, and we presume they had [...]
[fsn_row][fsn_column width="12"][fsn_text] When the top personal tax rate for individuals increased to 39% from 1 April 2021, it was not surprising to see an increase in the number and quantum of dividends declared by companies (owned by individuals) in the lead up to the change. With the anticipated increase in the Trust tax rate from [...]
[fsn_row][fsn_column width="12"][fsn_text] Given the necessity of providing fast relief, the wage subsidy scheme provided during COVID in NZ was largely based on trust. Today, MSD operates a Wage Subsidy Integrity and Fraud Programme aimed at ensuring the integrity of the payments and who received them. So far, 38 people have been brought before the courts [...]