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by admin on October 8, 2010

The goal of NZ Tax is to provide everyday New Zealanders with a reference to help them complete their tax returns.

Completing your taxes can be a daunghting process. It can be stressful and professional advice can be costly. We have pages of useful tax information that is easy understand and easy to follow.

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Pros and Cons of Lump Sum Gifting

January 31, 2012

The imposition of gift duty was abolished on 1 October 2011. It is now possible to make gifts of any sums without incurring an obligation to pay gift duty. This means you are able to make an immediate gift to your trust of the balance of the amounts stilt owed by the trust to you, [...]

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LTC Loss Limitation Rule

April 12, 2011

Telegram Services Ltd is a look-through company. The shareholders of Telegram Services Ltd are Rolf (50%) and Liesl (50%). Telegram Services Ltd has no paid up capital and is funded by shareholder advances from Rolf and Liesl. Telegram Services Ltd has also borrowed funds from the bank, which are jointly guaranteed by Rolf and Liesl. [...]

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Qualifying companies and look-through companies compared

April 12, 2011

On 15 October 2010, the Government released the draft legislation on the proposed changes to the qualifying company rules. The draft legislation creates a new tax entity called a look-through company, which will be taxed in a similar manner to a limited partnership. Existing qualifying companies and loss-attributing qualifying companies will be able to elect [...]

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LTC Interest Deductibility Made Clearer

April 11, 2011

Some presenters of seminars on LTCs have suggested converting an LAQC to an LTC could give rise to issues about the tax deductibility of interest. An LTC is transparentfor tax purposes. Therefore if a client owned their home and sold it to an LAQC, a problem could arise when the LAQC converts to an LTC. [...]

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Changes to tax treatment of RWT on trusts' interest income

December 11, 2010

The announcement has just been made regarding the tax treatment of resident withholding tax (RWT) in relation to trusts. The Government will introduce legislation in 2011 to amend the tax treatment of RWT on interest income derived by trusts. Inland Revenue has concluded that RWT deducted from gross interest paid to a trust forms part [...]

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GST time of supply rules – 1 October GST changes

November 9, 2010

Goods and services tax (GST) is a comprehensive consumption tax that applies to supplies of goods and services (other than exempt supplies) made in New Zealand by a registered person in the course or furtherance of a taxable activity. Understanding when a supply is treated as having been made is critical to the application of [...]

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NRWT and FITC – new rules

November 7, 2010

Under amendments to the FITC regime that came into effect from 1 February 2010 FITC now applies only to non-residents with less than 10% direct voting in a New Zealand company when the NRWT rate applicable to a fully imputed dividend (the effective rate is determined under a DTA where there is one in place) [...]

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Ring Fencing Property Losses

November 2, 2010

Are you worried about possible tax changes in the May budget? Especially ring fencing property losses? Personally I do not think the government will bring in ring fencing of property losses, but what happens if they do? How will this affect your weekly cashflow if you can no longer get a special tax code or [...]

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GST Changes

October 21, 2010

A bill tabled in Parliament yesterday will close off a loophole in the GST rules where some taxpayers have avoided paying GST on their property transactions. The bill also clarifies the change-in-use rules and the GST boundary between commercial and residential accommodation. One of the most important measures in the Taxation (GST & Remedial Matters) [...]

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Liabilities

October 21, 2010

Accounting definitions are important for those who is learning accounting and want to master theory and practice. These definitions provide understanding of the main accounting aspects and their practical application. This article will explore definition of liability. Concept Considering the definition of Liability we can that it is a debt owed by the business to [...]

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