Sharp as tax

As record property prices are recorded in some places (e.g. state houses selling for $2 million in Auckland), it is perhaps timely to remember that while NZ does not have a formal capital gains tax, profits on land can easily fall into the taxing net.

Let us reconsider the key principles underpinning when allowances paid to employees are either taxable (as remuneration) or tax free. This will become particularly relevant as the IRD's new view on accommodation allowances is applied.

This year has been interesting in many ways, more punctuated by case law and hardening of IRD positions than significant legislative change to the tax framework, although the significant delay of long-ago announced legislation will mean there are some law changes for us to manage.

New Zealanders have always had a passion for investing in land.

As we head into summer, it is timely to consider issues around holiday homes and their potential GST implications.

Although New Zealand taxation rules have been developed with a view to encourage innovative research and development, tax deductibility for such has traditionally been fraught with difficulties.

From April 1, 2008, individuals have been able to claim a rebate on all charitable or other public benefit gift in a tax year if they meet the requirements.

The Working For Families Tax Credit ("WFFTC") scheme has been in place for some years, but has over time been amended and tinkered with.

It is not often there is a tax case that can strike fear into the hearts of tax advisers and business owners alike, but the ongoing saga of Penny and Hooper has been one such case, especially given early suggestions that simply the use of company or trust structures could constitute tax avoidance in some circumstances.

It has been suggested that if something is said often enough, it becomes the truth/norm. This article is to offer an alternative view to a theory currently being espoused in many social and business settings around town.