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Useful tips for Small Business

General update by IBBZ Accounting on latest tax news, business growth and technology tips.
MAY
21
0

Budget 2015 bring new property tax rules

Budget 2015 bring new property tax rules

Budget 2015 bring new property tax rules

The Government will give extra $29million to the IRD in Budget 2015 for the property tax compliance activities. This is mainly to ensure property speculators also pay their fair share of tax, which is currently by enlarge being avoided.

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MAY
12
0

A Government attempt to make Tax Administration Simpler

A Government attempt to make Tax Administration Simpler

With the purpose of improving the current tax system, the Government has introduced some proposed changes to modernise New Zealand’s tax administration. These changes will make a huge impact on business, individuals and social policy customers in New Zealand.

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NOV
06
1

Tax Audit: What are the rights of a taxpayer?

Tax Audit: What are the rights of a taxpayer?

A tax audit is an examination of your financial affairs to check you have paid the correct amount of tax and you are complying with the tax laws. It could be a small check of GST or a full audit check on your business.  IRD may choose random business to start the audit and in the audit, there are some certain rights of a taxpayer.

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NOV
05
0

National policy for stable taxation accrues economic benefits

National policy for stable taxation accrues economic benefits

 

The National Party planned to introduce a stable tax system, without making drastic changes to the minimum wage. The level of minimum wage impacts the level of unemploymen in the economy. National considers a number of issues non-negotiable. Among them are (a) No Capital Gain Tax (b) No change in GST (c) Reduction in Company Tax Rate in the long run.Loss-making start-up companies are supported by new tax rules that help them to cash out all or part of their tax losses from R&D expenditure. Inland Revenue Department (IRD) has larger outlay to target property speculators and others avoiding tax, making the system become fairer for everyone.

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SEP
29
0

What is Director's Liability?

Companies going into voluntary or forced liquidation may have limited liability (the extent of the money invested) but such limitations do not cover the taxes due to the Inland Revenue Department (IRD). 

For instance, if a Company with $1000 as capital collapses, the liability of its Directors would be limited to $1000.

 

However, such limitations would not apply to IRD.

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SEP
29
0

Explaining Minimum Family Tax Credit

Minimum family tax credits are mainly available to low income earners. Minimum family tax credit is a payment made to families with dependent children aged 18 or younger, so they have a minimum income of $438 a week after tax ($22,776 p.a. from 1-4-2014).

 

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SEP
29
0

Why and How Time Management Skills are Important for The Success of Your Business

Time management skills are like a good pair of pants – you need to try several pairs before you find the right one which suits you best.  Time management is not very difficult as a concept but it is hard to put into practice.

  

In this article we will introduce a time management tool called priority matrix. You can have try and see whether it is the right one for you.

 

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SEP
29
0

Residential Care Subsidy

Some people set up a family trust to receive residential care subsidy when they get old. By setting up a trust they dispose their interest in an asset to be eligible to receive subsidy. With changing rules of social security it is getting harder to get residential care subsidy.

With the abolition of gift duty you can gift as much as you want and there will not be any tax duty. However, for residential care subsidy there still is a maximum level of gift per couple is $26,000.

 

What is residential care subsidy?

Residential care subsidy is paid to rest homes or hospitals directly for entitled people by the Ministry of Health.

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SEP
29
1

Introduction to Look Through Company

Look through company (LTC) is a fairly new concept to our tax system which was introduced in Budget 2010. Basically the main purpose of introducing LTC is to strengthen our tax system by putting a cap on loss attribution rules.

Look through company rules were applicable from 01/04/2011 onwards and only apply to New Zealand resident companies.

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SEP
29
0

Imputation Account

What is it?

Subpart OB of ITA 2007 defines the rules related to Imputation credit accounts (ICA). Every company in New Zealand need to maintain an ICA account, basically if you are paying income tax then it is advisable to maintain this correctly as when you start distributing dividend you can also distribute imputation credits to the shareholders.


Imputation credit account is a memorandum account (section OA2), and section OA3 defines an ICA account must record all credits and all debits that arise in the account as at their credit date or debit date. 
Credit balances
The credit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of credits over debits.
Debit balances
The debit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of debits over credits.

 

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