A lesson for us all

The "general permission" under the Income Tax Act broadly allows expenditure to be deductible if it is:

  • incurred in deriving assessable income, or
  • incurred in the course of carrying on a business for the purpose of deriving assessable income.

 

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Is it time to review your finance function?

To be successful, a business needs to strive for profitability and growth. An important element of this is the need to regularly review internal processes and functions. The finance function should be included in that process.

 

The finance function of any business needs to encapsulate the right tools, systems and processes to provide management with relevant, timely and accurate information to enable effective decision making.

 

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When your home is in a trust

It’s common to allow a family to live in their home owned by a family trust, on the basis the family pays all expenses.

 

If this agreement isn't documented, the payments made by the family could be treated as either rent paid for the use of the house, gifts to the trust or loans to the trust.  Remove the uncertainty by making sure there is proper documentation. One way of doing this is to get the trustees to record an appropriate minute in a meeting.

 

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Plan to make business bigger, better

“Planning is critical.”       – From Colyn Devereux-K Fragrance Holdings

 

Accountants talk of budgeting. This is putting dollar amounts to a business plan. What is a business plan? It’s anything you like! Why do we urge you to plan? Because you’ll get better profits if your plan is a success.

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IRD Compliance focus

We are seeing the IRD getting tougher in a number of areas these days. 

Requests from clients to have payment plans to clear income tax or GST debts or to have penalties reduced are being rejected in most instances nowadays. 

Up until a few months ago the IRD appeared to be reasonably agreeable to many of our requests on behalf of our clients but attitudes appear to be shifting.

 

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Women in the workforce

Thirty years ago, women would generally leave school at an earlier age than men and with fewer qualifications. The roles women assumed in society were very different and were often paid a much lower wage than what was received by their male counterparts. However, economic development, changing social beliefs and increased education has led to more women obtaining jobs in occupations once reserved for men. Employment opportunities are opening up as more and more females further their education through tertiary institutions.

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Business structuring

Whether you are starting a new business or looking at expanding your existing business, deciding on the commercial structure to adopt can seem daunting and the help of an advisor is likely to be sought. Irrespective of that help, the final decision will be made by you – based on your answers to the following types of questions.

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CHRISTMAS GIVING – TAX DEDUCTIBILITY

As usual with IRD even the happy time of Christmas brings with it tax complications and rules!

For example:

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