CLIENT NEWSLETTER – WINTER 2019

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

Ring Fencing of Rental Losses

New legislation has been enacted on 26 June 2019 which restricts taxpayers from being able to offset their rental losses derived from residential investment property against other sources of income. The rules take effect from 1 April 2019, the current financial year!  ........Click here to read more....



Audit Shield Insurance


Later this month you will be receiving an email from us regarding our Audit Shield Master Policy, which is tax audit insurance that we are offering to our clients.  Over the last two years Accountancy Insurance, who work with us to offer Audit Shield have seen an increase in the number of claims they pay out to participants.  In New Zealand they have seen a significant increase in Inland Revenue activity focusing on small businesses. Particularly in the areas of GST verifications (IRD reviewing GST returns for unusual activity, eg Large refunds) and Risk reviews (early reviews, prior to IRD making a decision to audit).  ........ Click here to read more. ...

Payments to Shareholders

Broadly speaking, a payment from a company to a shareholder is likely to be a salary / wage or a dividend, and therefore taxable income. However, loans from a shareholder to a company and therefore loan repayments are also commonplace. Whilst interest on such loans is taxable to the recipient, loan repayments should not be ...... Click here to read more....

Charities Working Group

The Department of Internal Affairs (DIA) is currently leading a comprehensive review of the Charities Act. With more than 27,000 registered charities in New Zealand and annual total spending of more than $17 billion, the sector forms a significant part ........Click here to read more....

Tax Pooling explained

Inland Revenue (IRD) charges a high rate of interest on late tax payments (currently 8.22%), and in some circumstances the complexity of the provisional tax regime makes interest charges hard to avoid. Add on late payment penalties, and the cost of meeting your tax obligations starts to feel punitive .......Click here to read more...

 

Short Term Accommodation

Inland Revenue (IRD) is currently consulting on tax obligations that arise on various forms of residential rental, such as renting out a room within your home, or letting property using a peer-to-peer platform, such as Airbnb or Bookabach. One of the proposed changes relates to the 'standard cost' rules for boarders or home-stay students. Currently, income earned below the threshold of $266 a week ........ Click here to read more...

 

 

2019 Client Annual Checklists

These can be found on our website under the tab "Financial Resources" or by following this link .


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

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