CCH - a Wolters Kluwer business
COVID-19: permitted businesses can prepare for opening on Tuesday 28 April New Zealand will move from Alert Level 4 to Alert Level 3 at 11.59pm on Monday, 27 April, the Prime Minister announced yesterday. As she had previously signalled, only businesses able to maintain strict physical distancing and meet stringent health and safety rules will […]
Read MoreNew loss carry-back scheme for businesses Question: Co A was, up until recently, in good financial health. It is expecting to return $800,000 in net income for the year ending 31 March 2020. Co A has already paid $124,000 in provisional tax installments and has a final provisional tax payment of $100,000 due on 7 […]
Read MoreCOVID-19: how will workplaces operate once NZ moves to Level 3? On 16 April 2020, the Prime Minister supplied information on how working life will look when the Government makes the decision to move New Zealand to Level 3. So far as daily life in general is concerned, many of the features of Level 4 […]
Read MoreFresh suite of COVID-19 measures to assist business community The Government has announced a suite of new measures to provide relief for businesses during the COVID-19 pandemic. Chief among the action points announced is a tax loss carry-back scheme. A tax bill will be introduced later this month (April) to enable this. Other measures revealed […]
Read MoreImportant message for businesses regarding overdue tax payments Inland Revenue has issued an important message for businesses regarding recent legislative change on the remission of use of money interest (UOMI). The message is intended to provide clarity on the remission of UOMI and other measures available to taxpayers who are struggling to pay their tax […]
Read MoreCustoms COVID-19 update The New Zealand Government has placed temporary entry restrictions into New Zealand to assist with the containment of the COVID-19. Trade is an essential service and during all COVID-19 Alert Levels, Customs will continue to ensure imports and exports clear the border. The following is the latest information published by Customs on […]
Read MoreCOVID-19: company law changes announced The Government is proposing amendments to the Companies Act 1993 as another lifeline in the wake of the COVID-19 outbreak. The proposals are intended to keep affected companies afloat by: Encouraging directors to keep trading through creating a “safe harbour” from insolvency breaches if directors consider, in good faith, that […]
Read Moreby Diren Fernando, Partner at HWL Ebsworth, Sydney and consultant to the Australian & New Zealand Insurance Reporter. Originally published by Wolters Kluwer in Australian Law Week, Issue 7, 18 Mar 2020 and amended for New Zealand in light of recent events. It hardly needs saying that the outbreak and spread of COVID-19 have had […]
Read MoreGST – converting Airbnb to long-term residential rental due to COVID-19 outbreak QUESTION: An individual owns a property which they use to provide short-term holiday accommodation via Airbnb in a tourist destination. The individual claimed GST on the purchase of the property in 2013. Due to government-imposed travel restrictions, the individual decided to rent the […]
Read MoreCOVID-19: essential workers to receive payment if unable to work The Ministers of Social Development and Workplace Relations and Safety have announced that essential workers who take leave to comply with public health guidance would be supported with a leave scheme to enable them to receive income without feeling pressured to go to work. This […]
Read MoreCOVID-19 wage subsidy: tax consequences The Government’s 12-week wage subsidy (available for both employees and the self-employed) is paid in one lump sum to the employer. The tax treatment for the employer is as follows: the lump sum is excluded income no GST applies to the lump sum receipt when the payment is passed on […]
Read MoreCOVID-19: measures to retain transport construction workers Advance payments are to be made to transport construction industry contractors to enable them to retain their workforce, Transport Minister Phil Twyford announced today. This would put the industry in a better position to quickly gear up post lockdown in carrying out construction projects vital to New Zealand’s […]
Read MoreWrap up: all you need to know about the Government’s COVID-19 wage subsidy scheme This commentary applies to wage subsidies made under scheme after 4pm on 27 March 2020. Wage subsidies are available for businesses significantly impacted by COVID-19. The subsidy is for 12 weeks. It is: $585.80 per week for a full-time employee (20 […]
Read MoreCOVID-19: Government announces modifications to wage subsidy scheme On Friday, 27 March 2020, Finance Minister Grant Robertson announced that modifications had been made to the wage subsidy scheme introduced by the Government to ensure people didn’t lose their jobs during the national lockdown. The modifications took effect at 4pm that day. They include: The obligation […]
Read MoreCOVID-19 Response Taxation Bill through all stages On 25 March 2020, the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill (No 237-3) was introduced into Parliament under urgency and passed through all stages, and has received the Royal assent. The policy proposals in this omnibus Bill are all aimed at assisting the Government’s response […]
Read MoreCOVID-19 Update: wage subsidy cap removed and other measures announced The Government has removed the $150,000 per business cap on wage subsidies that can be paid to employers affected by COVID-19. The announcement made today (23 March 2020) increases the expected cost of the scheme from $5.1 billion to $9.3 billion. The wage subsidies scheme applies […]
Read More17 March 2019 Fiscal response to COVID-19 announced by Government Finance Minister Grant Robertson announced the coalition government’s package to cushion the economic impact of the COVID-19 virus this afternoon at 2pm. Calling the $12 billion package “the most significant peace-time economic plan in modern New Zealand history”, the finance minister noted the following key […]
Read MoreDownload the Bulletin New Zealand Trusts & Asset Planning Guide In this issue: Cases considered Trustees seeking the Court’s blessing to a proposed course of action. The importance of a retiring trustee securing an indemnity from the continuing or new trustee. Solicitor/trustee failing to be indemnified for litigation and Beddoe order at short notice. Tracing […]
Read MoreNew anti-money laundering laws introduced On 13 March 2017, the Minister of Justice, the Hon Amy Adams, introduced the Anti-Money Laundering and Countering Financing of Terrorism Amendment Bill (248-1). The Bill is intended to bolster New Zealand’s existing anti-money laundering laws which help to protect businesses and make it harder for criminals to profit […]
Read MoreNZ Superannuation age going up to 67 On 6 March 2017, the Prime Minister, the Rt Hon Bill English, announced that the Government will progressively lift the age of eligibility for NZ Superannuation by six months each year from July 2037 until it reaches 67 in July 2040. This means everyone born on or […]
Read MoreBill replacing Customs and Excise Act introduced On 23 November 2016, the Customs and Excise Bill (209-1) was introduced into Parliament. The Bill will replace the Customs and Excise Act 1996. The Bill significantly modernises both the language and structure of the legislation while preserving the current law apart from making certain changes. Some detail […]
Read MoreEarthquake legislative instruments available The following legislative instruments relating to the Hurunui/Kaikoura earthquakes were notified in the New Zealand Gazette on 21 November 2016: Goods and Services Tax (Grants and Subsidies) Amendment Order 2016 (2016/269) This Order, which comes into force on 21 November 2016, amends the Goods and Services Tax (Grants and Subsidies) Order […]
Read MoreClarifying the tax treatment of foster care payments On 10 November 2016, the Social Development Minister, the Hon Anne Tolley, and the Revenue Minister, the Hon Michael Woodhouse, announced that changes to tax laws will clarify that payments to foster carers for the care of children and young people cannot be treated as income and […]
Read MoreRevamp to 60-year old trust law On 10 November 2016, the Justice Minister, the Hon Amy Adams, released draft legislation that will update New Zealand’s trust law and aid in their administration. Ms Adams noted that trusts play an important part in New Zealand. Between 300,000 and 500,000 trusts are operating today. New Zealanders use […]
Read MoreGeneration Wealth Management, Pukekohe improves trust management with CCH iTrust Cloud Trust Management Software Before subscribing to CCH iTrust, Generation Wealth Management used a heritage system provided to them by their Trust company. They had identified the ability to continue using this software as a risk to the business and so the directors looked round […]
Read MoreConning Barraclough Chartered Accountants improves trust management with CCH iTrust Cloud Trust Management Software Before subscribing to CCH iTrust, Conning Barraclough used a manual system to manage their clients’ trusts. Graeme Conning explains their rationale for signing up to iTrust, the transition process and the benefits of the new system for the firm and their […]
Read MoreGST threshold for online purchases progresses On 30 June 2016, the Minister of Customs, the Hon Nicky Wagner, announced that the Government wants to lower the threshold on online purchases that qualify for GST from mid-2018 but said that Customs needs to look into more detail around what some of the collection mechanism options could […]
Read MoreGovernment releases foreign trusts inquiry On 27 June 2016, the Minister of Finance, the Hon Bill English, and the Minister of Revenue, the Hon Michael Woodhouse, released tax expert John Shewan’s independent inquiry into Foreign Trust Disclosure Rules, and the steps the Government is taking to strengthen the tax rules as part of its work […]
Read MoreSpecial report on residential land withholding tax On 13 June 2016, Policy and Strategy, Inland Revenue, released a special report on residential land withholding tax. The Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016, enacted on 13 May 2016, introduced a new withholding tax – residential land withholding tax […]
Read MoreWhat should you look for in a Trust Management System? If you want to protect yourself and your firm against future complaints against your trust practice then it’s vital to keep good records…in one place! Trusts tend to be long-term so it’s often a few years or even decades before you start getting tricky questions. […]
Read MoreCloud storage and software systems are an increasingly common alternative to in-house data storage and software storage. The advantages include flexibility and cost. However, these advantages must be balanced against privacy/confidentiality obligations and the need for certainty that stored documents will retain their original form and content. The New Zealand Law Society’s Practice Briefing: Cloud […]
Read MoreThe two recent Clayton v Clayton judgments have brought a new landscape for attacking trusts. This bulletin from Wolters Kluwer covers the judgment details. The Clayton v Clayton (Claymark Trust) judgment concerned the successful appeal by Mrs Clayton from the decisions by the courts below, not to make an order against the Claymark Trust under […]
Read MoreFMA found not to have erred in deregistration of financial service provider The Court of Appeal has allowed an appeal by the Financial Markets Authority (FMA) from the High Court’s decision that the deregistration of financial service provider, Vivier and Co Ltd, be quashed: Financial Markets Authority v Vivier and Company Ltd [2016] NZCA 197. […]
Read MoreTPP Bill introduced to Parliament On 9 May 2016, the Minister of Trade, the Hon Todd McClay, announced the introduction of the Trans-Pacific Partnership Agreement Amendment Bill (133-1) to Parliament as an omnibus Bill. The Bill amends New Zealand law as part of the implementation of the free trade agreement named the Trans-Pacific Partnership (TPP) […]
Read MoreOmnibus tax Bill introduced The Taxation (Annual Rates for 2016-17, Closely Held Companies, and Remedial Matters) Bill (130-1) was introduced to Parliament on 3 May 2016. The Bill proposes to improve, strengthen and update the rules for closely held companies, non-resident withholding tax and the approved issuer levy, and the GST rules. It also proposes […]
Read MoreProposals to simplify tax released At a Pre-Budget 2016 speech to a Business New Zealand event in Wellington on 13 April 2016, the Prime Minister, the Rt Hon John Key, announced the release of a business tax package which includes proposals to simplify business tax. In a media release, the Finance Minister, the Hon Bill […]
Read MoreOECD Secretary-General issues statement on “Panama Papers” On 4 April 2016, the OECD Secretary-General Angel Gurría issued the following statement on the “Panama Papers”. “The ‘Panama Papers’ revelations have shone the light on Panama’s culture and practice of secrecy. Panama is the last major holdout that continues to allow funds to be hidden offshore from […]
Read MoreWhy you’re at risk if you’ve abandoned your clients’ gifting programmes When gift duty was abolished in 2011, many lawyers and accountants abandoned their clients’ gifting programmes and in the process many also stopped holding annual trustee meetings. However, this has thrown up some significant issues and shown the risks for professional trustees of not taking […]
Read MoreMinister responds to tax haven suggestion The Minister of Revenue has responded to suggestions that New Zealand is a tax haven after revelations of the use of New Zealand-registered foreign-controlled trusts uncovered by a massive leak of documents that are being called “the Panama Papers”. The documents all relate to the records over more than […]
Read MoreCourt of Appeal provides guidance on “permanent place of abode” In a decision reported as C of IR v Diamond (2015) 27 NZTC ¶22-035, the Court of Appeal has provided guidance in establishing whether a taxpayer has a “permanent place of abode” in New Zealand for tax purposes. The Court of Appeal rejected the Commissioner’s […]
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