IRD giving away holidays

Yes, it’s true. The IRD has started giving away free all inclusive holidays with your room, meals, beverages and even some sports activities included.  To be eligible, you’ll need to stop filing tax returns and start specialising in cash-jobs.  The most recent “winners” were in the building sector but that doesn’t mean they won’t open this up to your industry too.

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Changes to property tax

Buying and selling residential property soon?  You need to know about the upcoming changes because, with careful planning, you may still have a chance to take advantage of the old rules.

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Nosey neighbour newsletter

28639284_s (2)Recently we stumbled upon Remuera’s nosey neighbour website and realised that it’s not just house prices people get curious about.  As chartered accountants, we’re constantly asked what people are earning and given our strict confidentiality we’ve mastered the art of answering without answering …. but today we’re giving you some specifics.

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Christmas party taxing the band

14968238_sQuestion:

Santa is going to splash out on a band at this year’s Christmas party. He has booked the elves’ favourite band, The Pixies.  Does Santa need to deduct tax when he pays the band?

Answer

Santa will have to deduct tax if The Pixies are not a company.  Payments to musicians and members of a band are treated as “schedular entertainment activities” and subject to tax. Payments to the members will therefore be subject to a deduction at the flat rate of 20c for every $1 of payment if they have given Santa a tax code declaration form (IR 330). If no such form is provided, the tax is increased by 15c in the dollar on the usual withholding rate, ie, 35c in the dollar. If The Pixies hold a valid certificate of exemption (COE), or if The Pixies are a company, no tax is required to be deducted.

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Reference:  CCH New Zealand, Income Tax Act 2007, ss RD 8, sch 4.

Are insurance payouts taxable

3Crikey!  It’s bad enough dealing with the hassle of making an insurance claim without another smack in the face finding out you also have to pay tax on the payout.  Unfortunately, there’s no hard and fast rule stipulating whether business insurance payouts are taxable so what you need to do is examine the purpose of the insurance policy: Continue reading Are insurance payouts taxable

Can I do my own tax return

8840178_sAnyone can do their own tax return but whether they should is the real question. It’s a bit like that 1980’s advert where two over-sized mice are debating whether they can get the cheese out of a giant mousetrap by themselves. In true kiwi style they decide it’s “worth a crack” and sadly, with a slam of the trap, it’s all over for poor Nigel the mouse.  Having a crack at your own tax return is just the same except you won’t see the traps.  The traps only become visible when you’re audited and by then it’s too late.  Continue reading Can I do my own tax return