With the New Zealand Budget released on 22 May 2025, it is worth looking over the ditch and seeing whether the grass in Australia is greener as a result of their Budget that was released on 25 March 2025. A tax cut was introduced for individuals. The rate applying to...

From the 2021-2022 income years onwards, the Inland Revenue (IRD) introduced increased disclosure requirements for trusts. The increased disclosure requirements were aimed at supporting the Commissioner’s ability to evaluate compliance with tax rules, develop tax...

Most people have heard of “tax pooling”. But it is common for people to say they have heard of it “but, I don’t really get it”. Here is an explanation of tax pooling.For the purposes of provisional tax and tax obligations generally, a fundamental aspect is the...

When the unexpected happens — a fire, flood, or major equipment failure — insurance proceeds can provide some welcome relief. However, from a tax perspective, how that payment is treated isn’t always as simple as it first appears. While many businesses instinctively...

Currently, charities in NZ are broadly exempt from income tax. This is a choice that ‘we’ as a society have made. It is centered on the view that if an organisation is established for a charitable purpose, then ‘we’ should support that organisation and maximise the...

Accountants and tax professionals focus on helping clients understand how their business is performing and to assist them in meeting their tax compliance obligations. Although tax compliance and the importance of getting things right is important, it is appreciated...

Flu vaccinations are exempt from fringe benefit tax (FBT) if they are provided to employees either through a clinic set up on work premises, or where a voucher is given to the employee to use at their doctor or another clinic. This is because the vaccination falls...

The schedular tax regime falls under the PAYE rules and typically applies to require tax to be withheld from self-employed individuals if they perform certain types of work, such as modelling or shearing. On its website Inland Revenue have noted non-compliance has...

A common complaint about Fringe Benefit Tax (FBT) is that it is too complex, particularly when it comes to motor vehicles, which becomes a point of frustration given it is one of the most commonly provided benefits. This is borne out by how common it is for mistakes...

Although not desirable, it is not unusual for an employee to raise a personal grievance with their employer. Section 123 of the Employment Relations Act 2000 (ERA) provides for a number of remedies where an employee has a personal grievance. If an employee suffers...

Tax compliance can be complex, and there is often a lot to manage and get right. It is therefore inevitable that from time-to-time mistakes will happen. When these moments occur the question then becomes “what do we do?”. Inland Revenue requires taxpayers to make a...

For some, the increase in the trust tax rate from 33% to 39% has prompted them to ask the question – should we wind up our trust? Rather than looking at the purpose of having a trust with a narrow tax lens, it may be of benefit to consider your circumstances more...

A common complaint made by employers is that the amount of time it takes to meet their FBT obligations is disproportionate to the amount of tax it actually generates. This frustration is arguably borne out in the number of mistakes that are often made when calculating...

Inland Revenue has commenced consultation on what topic should be covered in its next Long-Term Insights Briefing (LTIB). Inland Revenue, like other government departments, is required to produce a LTIB once every three years. The purpose of an LTIB is to identify and...

The depreciation rate for non-residential buildings has been reduced to 0%, effective from the 2024 / 25 income year. However, commercial fit-out remains depreciable. This makes the distinction between the two important because it is the difference between not being...

Over the last 18 months there have been a number of businesses fall over – which in and of itself has not been surprising given the recent economic climate. However, one element that serves as a warning for us all is the flow on effect of those failures. Not just in a...

Tararua District Council is teaming up with our accounting firm to dive deep into the long-term economic effects of Cyclone Gabrielle and other pressures on the Tararua District farming community. With nearly 70% of our land classified as rural, agriculture is a key...