Chartered Accountants & Tax Specialist
General update by IBBZ Accounting on latest tax news, business growth and technology tips.
Team building is a systemic process where individuals work together in a well-coordinated and cooperative way turning into a cohesive team in order to achieve common goal. Team work is crucial for the success of a business. With team building skills, knowledge, talent and creativity of different individuals are blended together to get the best out of them.
Effective team building enhances working relationship between individuals, improves cooperation and as a result, produces better results, improves productivity, boosts morale and overall motivates team.
Business networking is a process of creating and nurturing relationships with other businesses, clients or potential customers. It is mutually beneficial for both the parties to enhance their knowledge, build new business opportunities and learn from success of others.Continue reading
Employee engagement is the degree to which employees feel enthusiastic about their work, are highly committed and put their best effort in the growth of the business. As employees are backbone of any business, so employee engagement not just meant for running your business smoothly, but also helps in overall success.
Engaged employees are focused, full of energy and always present in the situation. They are constantly ready to do more than what is expected out of them as they feel connected with the purpose of the business. According to Gallup, companies with engaged employees outperformed their peers by 147% in earnings per share.
Problem solving is a process of working on the minuteness of a problem in purpose of reaching a solution. These days, none of the businesses have immunity towards problems, so they face many problems every day. In one situation, problems can be small, easy and simple or big, difficult and complex in other. How a business handles a problem makes a huge difference in its success and failure.Continue reading
The services provided by your company to the customers before and after purchasing products or services is called customer service. Your customers can be new, potential or existing. If you want to grow your business, then customer service is the heart of your business irrespective of its size.
The success of many small businesses depend on how you wish to grow the profits by using appropriate advertising. Advertising builds reputation of your company in the market and encourage customers to try your products or services, increasing sales and generating more profit. However, before you advertise it is important to understand what’s your target customers, whether male or female, their age group, how many in number you want to target, where to target at local, regional or national level in order to reach many customers.Continue reading
In a tax case Van Uden v Commissioner of Inland Revenue  NZCA 487 the decision was delivered on 08th November 2018. High court decision was upheld in the favor of IRD explaining New Zealand Tax Residency and Permanent Place of Abode Test.
The decision confirms the interpretation of permanent place of abode as set out in Commissioner of Inland Revenue v Diamond  NZCA 613. Permanent place of abode in New Zealand can be seen as “a home in New Zealand”
This case provides very good explanation on New Zealand Tax Residency and Permanent Place of Abode Test.
The permanent Place of Abode test overrides 183 days test for New Zealand Tax Residency.
Recruitment is a continuous process of creating, developing and nurturing the relationship with potential talent. It is useful especially when you are hiring skilled and talent employees in the company. These prospective talents can be attracted from your competitors or developed within the company if they see a consistent opportunity to grow professionally and personally. At the same time, hiring for executive level can take unlimited time from few weeks to few years because the more competitive the talent is in the market, rarely they will be available.
Communication is the essence of business. There is a constant flow of information connecting people at different hierarchy within a company and customers. This communication can be written, oral or through gestures. On one side, a well-managed communication can lead to success of a company, a poor communication can be a disaster on the other.Continue reading
As amended, section 11A(1)(k) land related services provided to non-residents outside New Zealand at the time the services are performed are eligible for zero-rating, if they are:
• not directly in connection with land in New Zealand or
• not in connection with land in New Zealand and intend to enable or assist a change in physical condition, ownership or other legal status of that land or
• directly in connection to land outside New Zealand
Successful working relationships are required to have happy workplace. These relationships could be with business partners, clients, suppliers and employees.
On 01 Feb 2019 Tax working group headed by sir Michal Cullen has recommended the Government to introduce capital gain tax. The formal report is due to be released to the public on 21 Feb 2019. The government may consider the introduction from 01 April 2021
It is expected the scheme will be broad based with very little and no exemptions, excluding family home.
Sir Michael Cullen is the same person who was behind the introduction of GST in New Zealand. The GST scheme is a broad based with very little exemptions, almost everything in New Zealand attract GST. It makes New Zealand GST unique in the world. New Zealand is the only country in the world who has broad based consumption tax with no exemptions not even on essential items. GST collects significant revenue for the government.
Overthinking can be dangerous. However, thinking should be in a manner of critically analysing the subject. It should have the ability to reason and have logical judgements. A critical thinker can easily differentiate between rational thoughts based on careful consideration and emotional thoughts based on personal bias. Critical thinker is an active leaner rather than a passive recipient of information and analyse information objectively before jumping to the conclusion.Continue reading
Accounting and Human Resource are both crucial areas for a company. Being a Human Resource Manager requires to have number of skills like ability to connect with people at different levels, perform thorough assessment on employee’s skills, character and of course HR planning to meet company’s goals. So, it is important for HR professionals to possess business acumen because it helps to understand the drivers of revenue and cost of their company. Areas of accounting like financial reporting, budgeting and cost information help to make better planning and controlling decisions.Continue reading
A New Zealand tax resident may have a controlled foreign corporation, which is involved in business of rental. Different tax rules apply for such corporations.
The CFC rules were reformed in around 2009 to make New Zealand businesses compete globally and provide certain exemptions to them. If CFC is in a business of rental this can add some complexities in calculating the exemptions.
General rule of thumb is rental income is attributable income. However, certain exemptions are provided in the legislation.Continue reading
Is your business struggling financially, operationally or you just do not have enough time to focus on the business.
Have you thought about restructuring your company? Have you heard the term “restructuring”, what is this, is this right for your business?Continue reading
If you own or looking to own residential real estate, you should know about speculation tax. You should also be aware of the Government tax policy to address New Zealand housing affordability.Continue reading
Auckland residential market has been hot topic for several years. It has been going in only one direction upwards. The Government has been trying to make changes in tax policies since 2010. Firstly, they abolished LAQC, and depreciation on building, then introduced bright line test. Currently the bright line test has been extended to 5 years from April 2018 onwards, and Ring fencing of rental losses are being introduced from April 2019.Continue reading
A person is allowed a deduction for the amount spent on employing people. Payment related to employment could be in the form of wage and salary or payment of leaves. Section EA 4 says payment must be made within 63 days after the end of the income year. Any payment not made within 63 days after the of the income year, becomes income of the person for tax purposes. It means deduction is not allowed for the unpaid portion.Continue reading
In the recent tax case of Singh v The commissioner of Inland Revenue  NZCA 506, the court of appeal held the Commissioner can ignore sections 176, 177, 177c of the Tax Administration Act 1994 when pursuing bankruptcy due to non-payment of tax.Continue reading