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Read MoreUpskilling your practice for the new new normal in accountancy
Firms already on the path to digitalisation will have seen this period of prolonged remote working and online collaboration as justification for their continued investment in technology. For those pioneering firms that see technology as an enabler for the growth of their practice, it is very much a key factor in their ability to not only survive, but to thrive in a post-COVID world.
Read MoreCOVID-19 response: Level three prompts extension of wage subsidy
COVID-19 response: Level three prompts extension of wage subsidy Finance Minister Grant Robertson has confirmed that the wage subsidy scheme will be further extended nationwide for the period that Auckland is at COVID-19 Alert Level 3. The criteria for the latest extension to the wage subsidy extension are: a business must have had, or is […]
Read MoreDirector’s liability for tax and the COVID-19 ‘safe harbour’ rule in schedule 12
Director’s liability for tax and the COVID-19 ‘safe harbour’ rule in schedule 12 Inland Revenue has released BR Pub 20/06, “Income Tax and Goods and Services Tax – Director’s liability and the COVID-19 ‘safe harbour’ in schedule 12 to the Companies Act 1993”. This public ruling considers the situation where directors of a company, in […]
Read MoreCOVID-19: Small Business Cashflow (loan) Scheme extended
COVID-19: Small Business Cashflow (loan) Scheme extended On 5 July 2020, the Revenue and Small Business Minister, the Hon Stuart Nash, announced that the Small Business Cashflow (loan) Scheme (SBCS) has been extended until the end of 2020. Applications opened on 12 May 2020 and can now be submitted up to and including 31 December […]
Read MoreGuidance on recent COVID-19 tax legislation
Guidance on recent COVID-19 tax legislation On 19 June 2020, Inland Revenue advised that guidance on recent COVID-19 related legislation is now available at www.taxpolicy.ird.govt.nz. The changes were included in the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (No 10 of 2020) enacted on 30 April 2020 and the COVID-19 Response (Further […]
Read MoreCOVID-19: wage subsidy and loan schemes broadened
COVID-19: wage subsidy and loan schemes broadened The Government has decided to allow more businesses to benefit from the extended wage subsidy scheme. When the scheme was first announced, the beneficiaries of the scheme were to be businesses that had a revenue drop of at least 50%. On 5 June 2020, the Ministers of Finance, […]
Read MoreCOVID-19: foreign investment rules tightened
COVID-19: foreign investment rules tightened The Government considers that key New Zealand assets will be better protected from being sold to overseas owners in a way contrary to the national interest with the passage of the Overseas Investment (Urgent Measures) Bill. Introduced on 14 May 2020, the Bill received its first reading on 14 May […]
Read MoreCOVID-19: kilometre rates for the business use of vehicles
COVID-19: kilometre rates for the business use of vehicles Instead of making a claim for the business use of a motor vehicle based on the actual costs, a taxpayer may elect to have a deduction for the business use portion based on a kilometre rate method. The Commissioner can set the kilometre rates for the […]
Read MoreCOVID-19 Variation Determination
COVID-19 Variation Determination To help taxpayers manage the impacts of COVID-19, the Commissioner now has a discretion to vary a requirement under an Inland Revenue Act (including for these purposes, the Unclaimed Money Act 1971). This discretion is found in ss 6H and 6I of the Tax Administration Act 1994 and applies from 17 March […]
Read MoreCOVID-19: new payment for up to 12 weeks for those who’ve lost jobs
COVID-19: new payment for up to 12 weeks for those who’ve lost jobs Ministers Grant Robertson and Carmel Sepuloni announced on 25 May 2020 a new temporary payment to support New Zealanders who lose their jobs due to the pandemic. The “COVID Income Relief Payment” will be available for 12 weeks from 8 June for […]
Read MoreCOVID 19 update: body corporates to hold meetings remotely, commercial lease rents can be longer in arrears before cancellation, and mortgagors have longer to remedy defaults
COVID 19 update: body corporates to hold meetings remotely, commercial lease rents can be longer in arrears before cancellation, and mortgagors have longer to remedy defaults Temporary changes to allow body corporates to hold meetings remotely The COVID-19 Response (Further Management Measures) Legislation Act 2020 (the Response Act) makes temporary changes to the Unit Titles […]
Read MoreCOVID-19 response for small business cashflow scheme amendments
COVID-19 response for small business cashflow scheme amendments The COVID-19 Response (Further Management Measures Legislation Act 2020 (No 13 of 2020) received the Royal assent on 15 May 2020. Introduced on 5 May 2020, the COVID-19 Response (Further Management Measures) Legislation Bill (244-1) was referred to the Epidemic Response Committee and was reported back by […]
Read MoreCOVID-19 response for companies and other business entities
COVID-19 response for companies and other business entities The COVID-19 Response (Requirements For Entities—Modifications and Exemptions) Act 2020 was passed on 13 May 2020 under urgency and received Royal Assent on 15 May 2020. Previously part of the omnibus COVID-19 Response (Further Management Measures) Legislation Bill before being split off, the Act contains significant changes to […]
Read MoreNew measures to protect New Zealand’s national interest
New measures to protect New Zealand’s national interest The Government is amending the Overseas Investment Act 2005 to protect key New Zealand assets from falling unnecessarily into foreign ownership as the economy recovers from the fallout of the global COVID-19 pandemic. The Overseas Investment (Urgent Measures) Amendment Bill (261-1) and the Overseas Investment Amendment Bill […]
Read MoreCOVID-19 small business cash flow loan
COVID-19 small business cash flow loan Amendments to the Tax Administration Act 1994 and the Income Tax Act 2007 by the enactment of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act (No 10 of 2020) on 30 April 2020 authorised the Commissioner of Inland Revenue on behalf of the Crown to lend money […]
Read MoreHow Wolters Kluwer Tax & Accounting in Asia Pacific is delivering impact beyond COVID-19
How Wolters Kluwer Tax & Accounting in Asia Pacific is delivering impact beyond COVID-19 By Izzy Silva Managing Director Wolters Kluwer APAC Wolters Kluwer has served professionals in AsiaPacific for over four decades, helping them enhance workflows and make informed decisions. Our expert solutions – a combination of deep domain knowledge with advanced technology and […]
Read MoreInland Revenue update for businesses impacted by COVID-19
Inland Revenue update for businesses impacted by COVID-19 On 4 May 2020, Inland Revenue issued an update for businesses about the recent tax changes to assist New Zealand businesses to manage the impacts of COVID-19. In particular, the update refers to the changes relating to the temporary tax loss carry-back scheme and the Commissioner’s new […]
Read MoreCOVID-19 response: measure to free up for employment those on parental leave
COVID-19 response: measure to free up for employment those on parental leave Legislation introduced into Parliament today contains proposed amendments to the Parental Leave and Employment Protection Act 1987 which would allow workers entitled to parental leave to go back to work temporarily to assist in the COVID-19 response without losing entitlements to leave and […]
Read MoreCOVID-19 response and immigration changes
COVID-19 response and immigration changes On 5 May 2020, the Immigration (COVID-19 Response) Amendment Bill (243-1) was introduced into Parliament. The Bill amends the Immigration Act 2009. The Bill aims to ensure that the Government can respond appropriately and efficiently to the COVID-19 outbreak by providing additional flexibility in the immigration system. It does this […]
Read MoreCOVID-19 – further management measures introduced
COVID-19 – further management measures introduced On 5 May 2020, the Government introduced the COVID-19 Response (Further Management Measures) Legislation Bill (244-1). This omnibus Bill introduces amendments that will assist New Zealand to respond to the wide-ranging effects of COVID-19, including changes to enable businesses, local government, and others to manage and mitigate the impacts […]
Read MoreCOVID-19 specific GST issues
COVID-19 specific GST issues COVID-19 is likely to have a serious impact on businesses. For people who are GST-registered there are tax implications where supplies are cancelled or there is change of use of an asset. Some taxpayers may need to cancel their GST registration. GST on cancelled supplies If GST is returned on a […]
Read MoreSecond COVID-19 tax Bill passes through all stages
Second COVID-19 tax Bill passes through all stages On 30 April 2020, the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Bill (240-3) was introduced into Parliament under urgency and passed through all stages. The Bill now awaits the Royal assent. This is the second taxation Bill in response to the COVID-19 induced economic crisis. […]
Read MoreCOVID-19 cash flow lifeline for small businesses
COVID-19 cash flow lifeline for small businesses On 30 April 2020, the Minister of Revenue, the Hon Stuart Nash, announced that a significant package of tax reform will be pushed through all stages in Parliament on 30 April 2020 to throw a cash flow lifeline to small and medium-sized enterprises (SMEs). The Minister said that […]
Read MoreCOVID-19 income equalisation assistance for primary sector
COVID-19 income equalisation assistance for primary sector On 29 April 2020, Inland Revenue announced that measures are being taken to assist farmers, fishers and growers whose current or future income will be significantly affected by the impacts of COVID-19. Inland Revenue is aware the primary sector is now feeling the impacts of COVID-19. In particular, […]
Read MoreCOVID-19: Payments to employees for working from home costs
COVID-19: Payments to employees for working from home costs On 29 April 2020, Inland Revenue released Determination EE002: “Payments to employees for working from home costs during the COVID-19 pandemic”. This determination is a temporary response to the COVID-19 pandemic and applies to payments made for the period from 17 March 2020 to 17 September […]
Read MoreTreasury’s COVID-19 Economic Dashboard
Treasury’s COVID-19 Economic Dashboard On Friday, 24 April 2020, Treasury published its latest Weekly Economic Update and COVID-19 Economic Dashboard. Weekly Economic Update The Treasury Weekly Economic Update states that: “High frequency indicators show that economic activity continues to run at much slower levels than normal under Alert Level 4. New Zealand will move to […]
Read MoreCOVID-19: audit process will expose business abuse of wage subsidy
COVID-19: audit process will expose business abuse of wage subsidy The New Zealand Government has spelt out measures to ensure that businesses don’t abuse the wage subsidy available to them if their revenues are down. As already announced, an employee who believes that their workplace is accessing the scheme but not meeting the conditions it […]
Read MoreCOVID-19: leave payment scheme extended
COVID-19: leave payment scheme extended At the beginning of April, the Government announced that help would be given to essential businesses with workers who are unable to work for a variety of COVID-related reasons. That assistance is to be extended to all businesses, organisations and self-employed people, other than the state sector. The payment will […]
Read MoreCOVID-19: Late filing and time bar
COVID-19: Late filing and time bar Inland Revenue has advised that although it remains important to furnish the 2019 income tax returns as soon as possible, any late filing penalties will be waived if the return is filed late due to the impact of COVID-19. Late tax return filings will also have the effect of […]
Read MoreCOVID-19 residence issues – Inland Revenue and OECD guidance
COVID-19 residence issues – Inland Revenue and OECD guidance Inland Revenue On 22 April 2020, Inland Revenue issued a public statement for tax agents relating to the unintended and unprecedented consequences for the tax residence rules caused by the COVID-19 emergency. These consequences are particularly relevant for people stranded in New Zealand who were not […]
Read MoreDo safe harbour and COVID-19 UOMI concessions apply if no final provisional tax payment made?
Do safe harbour and COVID-19 UOMI concessions apply if no final provisional tax payment made? Question: Under the new rules relating to use of money interest (UOMI) write-offs, some provisional taxpayers will be eligible for relief from use of money interest for late payment of the final instalment of 2020 provisional tax if they have […]
Read MoreOECD releases guidance on COVID-19 and double tax agreements
OECD releases guidance on COVID-19 and double tax agreements The Organisation for Economic Co-operation and Development (OECD) has released guidance on the impact of COVID-19 on the interpretation of various tax issues covered by double tax agreements. The guidance recognises that many people may be stranded in a country that is not their usual place […]
Read MoreCOVID-19: permitted businesses can prepare for opening on Tuesday 28 April
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
New 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?
COVID-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
Fresh 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 MoreCOVID-19: Important message for businesses regarding overdue tax payments
Important 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
Customs 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
COVID-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 […]
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