IBBZ Accounting
Chartered Accountants & Tax Specialist
Useful tips for Small Business
General update by IBBZ Accounting on latest tax news, business growth and technology tips.
New financial reporting framework easing the reporting burden for overseas companies
It is now easier for overseas businesses to operate in New Zealand. New financial reporting standards simplify audit requirements for overseas companies.
Currently if New Zealand business is owned by the Overseas Shareholders (company incorporated outside of New Zealand) the financial statements of the company must be prepared, audited and filed with the NZ Companies office. The auditing of financial statements does add financial burden especially on a small business, and this could be up to $8,000. The law itself had been quite stringent on all overseas investors so regardless of size of the business all financial statements must be audited with the exception of non-active status of the business.
However, from 01-04-2014 these requirements have been changed, and the new requirements making it simple for Overseas Companies to operate in New Zealand. For example, A New Zealand business which is owned by overseas shareholders will benefit from this exemption. The benefit would be mainly for businesses small in size i.e. less than $10 million in revenue or $20 million in assets.
This exemption is a remarkable improvement in the direction of facilitating foreign investments in New Zealand. It will help all small overseas businesses including Indian businesses to do business in New Zealand without worrying about compliance cost mainly auditing expense.
New changes to overseas companies audit requirements are coming into effect for the financial year beginning at 1-4-2014.Overseas companies will only be required to prepare general purpose financial statements and have their financial statements audited if they are (Company Act 1993, section 206)
• FMC reporting entities: includes issuers, non-bank deposit takers
• Large: Overseas companies with over $10 million revenue or over $20 million assets (Financial Reporting Act 2013, section 45).
All other (overseas) companies should only prepare the minimum reports required by the Inland Revenue Department and there are no audit requirements.
These changes ease the financial reporting burden from many overseas companies and allow them to focus on running their business.
Example: A successful restaurant in Port Villa, operating the same restaurant in Auckland, it is 100% owned by that business, the turnover of the New Zealand business is $1.5 million. The annual financial statements are not required to be audited and filed with the NZ companies office from 01st April 2014.
Date published: 06 June 2014
About the author:
Saurav Wadhwa is an Auckland based chartered accountant and a director of IBBZ Accounting Limited. He is very passionate about helping small business owners. His easy going personality and a friendly nature makes him easily approachable. For all your accounting and tax problems including overdue tax returns, and IRD audits & disputes you can contact him at This email address is being protected from spambots. You need JavaScript enabled to view it. or 027 5555 458.
Legal stuff:
Information above is provided by IBBZ Accounting Limited for general use only, if you are intending to rely on any of the information above please consult with us or seek a professional advice. If information provided above result in any kind of loss to you we can not be held responsible.
Saurav Wadhwa is a Principal Accountant at IBBZ Accounting Limited
M Bus (TAX) PG Cert (LAW) CA CPA
Membership and Qualification:
- Masters in Professional Business Studies (Taxation) with Distinction from Auckland University of Technology
- Post Graduate Certificate in LAW, Law School at Auckland University of Technology
- Chartered Accountant(CA), New Zealand Institute of Chartered Accountants (NZICA)
- Certified Practicing Accountant(CPA), CPA Australia
- Bachelor of Commerce, Grad. Cert. in Business from Auckland University of Technology
Saurav has many years of practical experience in tax & accounting services and is the co-founder of IBBZ Accounting Limited. He is qualified both in law and accounting. Saurav has worked in various tax & accounting specialist roles for large corporates in New Zealand. He loves to work with Small Businesses.
His key focus is on:
- Tax advisory for small and family operated businesses on a wide range of taxation issues.
- Legitimate tax saving structures.
- Advising on range of new business issues.
- Ensuring business growth is attained.
- Effective cash flow planning.
Saurav specialises in Tax Disputes resolution, Tax Relief applications, Tax Debt resolution/management, and representation in Tax Audit. Saurav can represent you in Taxation Review Authority, in Tax Dispute Court Cases or he can represent you during Tax Audit Investigations.
Blend of skills in Tax laws and accounting, makes him perfect advisor for small businesses and individuals like you. Saurav understands how to safeguard your business from creditors risk, maximise the business growth and pay low taxes. He can be your good strategic and business partner. He is of a friendly nature and easily approachable.
Saurav understands the numbers very well. He is a qualified Chartered Accountant and registered with highest professional accounting bodies of Australia and New Zealand. He can help you to plan for the future to satisfy all your financial needs.
Consumed by a hunger for knowledge, Saurav has never stopped furthering his education or expanding his pool of knowledge. Nothing gives Saurav more satisfaction than assisting his clients to achieve their financial goals. His diligence, passion and accuracy has earned him a reputation as a reliable professional who strives to serve his clients above and beyond the call of his duties.
Saurav was nominated for the Best Accountant of the year and the Young Entrepreneur of the year, and his company IBBZ Accounting won the award of Best Small Business 2014. In 2015 Saurav won the award of Best Accountant of the Year.
In 2017 Saurav was appointed as a committee member to New Zealand Public Practice Board of CPA Australia.
Saurav is a dedicated family man. Saurav is very fond of outdoor activities and enjoys pretty much all outdoor activities: running, bike, motorbike, snorkel, fishing, skiing etc. Saurav, is also a self-confessed workaholic, spends some of his free time thinking about his client’s affairs and forecasting their financial future.
He can be contacted on saurav@ibbz.co.nz or 09 272 8050
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