A summary of the latest tax changes and news relating to individuals and businesses.
- The ring-fencing of residential property losses is now a step closer. The Taxation (Annual Rates for 2019-20, GST Offshore Supplier Registration, and Remedial Matters) Bill was introduced to Parliament on 5th December 2018. This Bill introduces, among other things, the proposed measures to ring-fence residential property losses. Please refer to our earlier item on ring-fencing, which explains its impact upon residential property investors. The Bill proposes commencement for the 31 March 2020 tax year onwards, i.e. from 1st April 2019. If you are a residential property investor, pages 73-82 of the Commentary to the Bill is worth reading, and given the likely timing of the proposed new rules you may want to get your deferred repairs and maintenance done before 31st March 2019.
- The IRD has published some helpful tips on how to spot email or phone call scams. It includes tell-tale fake phrases scammers may use when trying to impersonate communications from the IRD, as well as what to do if you receive a suspicious email, phone call or text. To find out more, including news on the latest scams, go to https://www.ird.govt.nz/identity-security/scam/scam-alert.html?id=homepage.
- This is the time of year when many businesses give gifts to their customers in appreciation of their support during the year. Gifts of food or drink are 50% deductible, meaning that half of their value can be claimed as tax deductions, while gifts of items other than food and drink are fully tax deductible. More information can be found in our “Business Basics: Entertainment Expenses” brochure.
- Employment New Zealand are warning employers they could face fines of up to $10,000 for failing to comply with employment laws. Legal requirements include being able to show that employees have been paid the minimum requirements, and keeping records and current employment contracts. Penalties can be even higher if it can be proved that an employer has gained financially by not complying with the law.
- The New Zealand Companies Office has launched a new Personal Property Securities Register (PPSR), an online resource where you can register a legal claim to personal property or check for any debt or obligation attached to goods you are buying. The register is designed to help individuals and businesses protect themselves from buying, selling, leasing or hiring out goods, or selling goods on consignment.
Please contact us if you have questions regarding any of these areas.