FOOD FOR THOUGHT

Family. Gifts. Carols, baubles, tinsel on the tree. When it comes to Christmas time, these are the things that most Kiwis are going to be thinking about—but there’s one more thing that business owners need to keep in mind over the Season of Giving: how much they should be giving to their employees in pay over the holidays.

A massive overhaul and rewrite to trust law in New Zealand is currently underway—and your trust may be affected.

If you use a company vehicle as a benefit for your employees, you need to make sure you’re keeping the IRD happy over the holidays.

‘Tis the season of giving! But if you’re planning to give your clients and/or employees a present this year, you should temper your generosity of spirit with the correct tax treatment of gifts for employees. After all, you wouldn’t want the IRD to put you on its naughty list… 

Listening to the second leaders debate this week, I could not help but let my mind wander to the same question businesses have been asking for. We need innovative tax policy now which can both redeploy resources, use existing infrastructure better, and propel New Zealand forward.

From 1 April 2017, tax must be deducted from all payments made to contractors working under a ‘labour hire arrangement’ for a labour hire business. This change will impact many businesses and different industries such as: employment agencies, 'temp' agencies, on-hire businesses as well as the wider recruitment, IT and healthcare industries. 

In 2015, the Tax Department introduced a ‘bright-line test’ for the sale of residential property. If you buy and sell a property within two years, this test is used to determine if you are required to pay tax on the profit. We explain how the bright-line test works and the responsibilities of residential property owners.

Property taxation is currently a hot area of focus for the Tax Department. If you’re buying, selling or renting property in New Zealand, it’s important to understand how property taxation works and your responsibilities as a business owner.

If you are moving to New Zealand, or are returning to New Zealand from overseas, then you could quality for the transitional tax resident exemption. We explain what this means and how it impacts your tax obligations.

As the tax landscape continues to change with increased complexity of tax regulation both domestically and overseas, the management of tax is fast becoming a necessary part of today’s advisory board agendas. Graham Lawrence gives some important advice to business owners who want to get it right.