The New Zealand government continues to forge closer links with other governments when it comes to the sharing of tax information.
To this end it has announced that New Zealand will assign up to the global Automatic Exchange of Information (AEOI). The agreement comes into effect from the 2018 tax year.
Inland Revenue has advised of another change to the Use of Money Interest (UOMI) rates charged on underpayment and overpayment of New Zealand tax.
Despite the comments we hear from many the many business that get hit with UOMI (use of money interest), is not actually a penalty.
As at 11:10 this morning the average Kiwi worker stopped working for the government and everything they earn for the rest of the year is their’s to keep.
That’s based on a very tongue-in-cheek statistic based on OECD figures that show government expenditure is around 40% of the annual economy but, hey, any excuse for a party!
We are getting phone calls from a number of British migrants who moved to New Zealand prior to 31 March 2014 and took their British pension funds with them.
Those taxpayers who have decided to try out the warmer shores of Australia and are starting to receive letters from New Zealand’s Inland Revenue Department.
Inland Revenue has released a draft Standard Practice Statement relating to the notification of an upcoming audit or investigation.
So why is this important?
Inland Revenue has updated the regulations that impact on low-interest loans made by companies to employees and shareholders.
There is new legislation being enacted in New Zealand that comes into effect in April aimed at reducing the “work” toll in New Zealand workplaces.
While preparing New Zealand income tax and GST returns we are noticing a tendency for clients to claim a tax deduction for parking fines, late fees charged by the New Zealand Companies Office and the like.
Unfortunately, the tax rules ensure you do not get a benefit from being naughty.
From the current tax year (the one starting 1 April 2015) there are certain transactions that deal with associated persons that are now required to be reported for New Zealand tax purposes.
They apply when the associated person is not a tax resident of New Zealand.