CLIENT NEWSLETTER – SUMMER 2021/2022

In each article below we have provided a short summary of the topic. If you would like to read more please click on the link to our website for the full article and newsletter.


SUMMER CLOSE DOWN PERIOD

We are closing for the Summer break on Thursday 23rd of December 2021 at midday and re opening on Monday 17th of January 2022. 


We wish you a safe and happy holiday season and a Happy New Year.

 

Clarity for Property Investors

In March 2021 the Government announced changes to the bright-line test and interest deductibility for residential properties.  Following the release of a discussion document in June, there has still been significant uncertainty regarding the specific details of how the new rules will apply. However, the government has now provided clarity through the release of draft legislation on 28 September 2021.  For the purposes of the legislation, a new term has been coined - "disallowed residential property" (DRP), which refers to those properties for which interest deductibility will be affected.....Click here to read more 

Is your Christmas Spirit Tax Deductible? 

A reminder of the entertainment and FBT rules

Christmas is fast approaching and so is the time that businesses may reward customers and staff with Xmas functions and Xmas gifts. This article considers the deductibility of these expenses....Click here to read more 


New Tax Legislation

On 9 September 2021, the Government introduced the Taxation (Annual Rates for 2021-22, GST and Remedial Matters) Bill ("the Bill") into Parliament, containing over 100 tax amendments. Changes of note are summarised as follows. One significant amendment is in relation to purchases from associated persons. Under current law, if a GST registered person ('the purchaser') acquires second-hand goods from an associated person who has not used them to make taxable supplies, and that associate originally purchased the goods from a non-GST registered person, the purchaser's second-hand goods deduction is zero. This has been a frustrating ........Click here to read more 

Where is this going?

On 2nd December 2020, legislation was introduced by the Government that increased the top personal marginal tax rate to 39% on income over $180,000 from the start of the 2021/22 income year.

Three other changes were included in that legislation. It introduced:

  • new information gathering powers for the purpose of tax policy development,

  • a new requirement for most trusts that derive assessable income to prepare financial statements, and ......... Click here to read more 

GST Warranty - Sale & Purchase Agreements for Real Estate

Near the top of the first page of the Auckland District Law Society "Agreement for Sale and Purchase of Real Estate" sits the following question:  The vendor is registered under the GST Act in respect of the transaction evidenced by this Agreement and/or will be registered at settlement: Yes / No.  The answer to the question comprises a warranty by the vendor regarding their GST registration status.  After undertaking extensive planning, seeking accounting advice and getting a valuer to determine an apportionment of the property value, the purchasers became aware that Ms Marr was GST registered. Unable to claim any GST.......Click here to read more 

McIsaacs Covid 19 Response - Visiting our office  

Protecting the health and wellbeing of our people, clients, family and communities is top priority.   We are implementing this policy because we believe at this time, vaccinations are how we safely move into an environment with fewer restrictions for businesses, our communities and each of us personally. From 16 December 2021, we will require all visitors to our office to be fully vaccinated........Click here to read more 

15 January 2022 Provisional Tax......

We will be advising clients what provisional tax they have payable for 15 January 2022 before we close for the summer holidays.  The standard safe harbour option (2020 Residual tax +10% or 2021 Residual tax plus 5%) may not be appropriate for this provisional tax payment if your profitability has changed significantly. This could be due to impacts of Covid 19.  Please contact us if you would like us to review your tax position to date and provide advice on what amount should be paid and what options are available for paying provisional tax because cashflow is already difficult during summer holidays with close downs, paying staff holiday pay, GST and Provisional tax.


Please continue to stay safe everyone.

All the best from the team at McIsaacs.

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Please note: The above E-newsletter notes and the related articles on our website are of a general nature and therefore we urge clients who may be affected by these changes to contact us to discuss your specific circumstances before making any changes or drawing any conclusions.

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  • Takapuna Office

    Ground Floor, Takapuna Finance Centre
    159 Hurstmere Road
    P O Box 331 626
    Takapuna, Auckland

    Phone +64 9 414 4050
    Fax +64 9 447 1645
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