Taxing Matters provides a summary of topical tax and business information relating to individuals and business.

Deductibility of Legal Fees   A deduction can be claimed for legal fees incurred in carrying on a business, including buying and selling rental properties, up to a total of $10,000 in any year regardless of whether the fees are of a capital nature.  Where legal fees are of a capital nature, and exceed $10,000, no deduction can be claimed.

Deductibility for Websites   The cost of creating a business website is capital expenditure and the costs should be capitalised and depreciated. The ongoing costs of maintaining or updating an existing business website are deductible when incurred.

ACC 2014/15 Rates   The new ACC levy rates for the 2015 year have been set including the following:

  • Earners account levy per $100 of liable earnings (including GST) is $1.45
  • The minimum liable earnings for self-employed workers is $28,600
  • The maximum liable earnings for Self-employed is $116,089 and for employees $118,191

IRD Use-of-Money Interest     The IRD’s current use-of-money interest rates on underpayments is 8.89% and on overpayments is 2.18%.

2013 Terminal Tax Date     Tax payers using a tax agent have until 7 April 2014 to pay their 2013 terminal tax.  Failure to make payment by that date will result in the IRD applying interest and late payment penalties to any overdue amounts.  Tax payers who do not use a tax agent should have paid their 2013 terminal tax by 7 February 2014.

Tax Due Date Falls on a Weekend or Public Holiday     Where a tax due date falls on a weekend or public holiday you have until the next working day to file and/or pay.