Iain Blakeley

Barrister - Tax Expert - Business Adviser - Director, Professional, Practical, Fast, Affordable

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IRD wants to hear from employers

IRD wants to hear from employers

IRD wants to know what employers think of their proposals for correcting and adjusting PAYE filings. This recently released officials' paper sets out the background and proposals: http://taxpolicy.ird.govt.nz/publications/2017-ip-paye-error-correction/overview A tax...

NZ businesses are getting it wrong

I'm seeing increasing evidence of misunderstanding over how the zero rating rules apply. From 1 April 2014 non-resident businesses can register for GST in NZ under a new system which allows them to claim GST refunds on business related costs. Historically a business...

Exporters beware!

There's no GST on exports, right? Wrong! Sometimes GST does apply to exports. Here's an example: NZ Ltd agrees to sell products to UK Ltd. UK Ltd is going to use the parts in the creation of a sculpture in the UK. NZ Ltd invoices UK Ltd and receives payment before the...

NZ tax department reveals its compliance focus

Our new tax Commissioner has just released a document outlining her department's key compliance programmes for 2012/13.http://www.ird.govt.nz/resources/6/6/661d18004c5fb8aea1cde57bdeadb8e8/our-compliance-focus-2012.pdf?CACHEID=661d18004c5fb8aea1cde57bdeadb8e8The 32...

Emissions units

Receiving emissions units can cost you. It's easy to assume GST doesn't apply to emissions units. The legislation has specific provisions which "zero rate" many supplies of emissions units so perhaps the natural presumption is, you don't have to worry about GST...

Penny and Hooper decision carries GST lessons.

The Supreme Court ruled yesterday that orthopaedic surgeons Ian Penny and Gary Hooper avoided tax when they diverted income from their practices to lower tax rate entities such as companies and trusts. A significant issue was the below market salaries they paid...

Refunds

A lot of refunds are changing hands at the moment. All sorts of arrangements are being cancelled because of mother nature and today we read Contact and Telecom have discovered billing errors which will require refunds being paid to customers. A word of caution: if you...

IRD leniency

The IRD is to be commended for quickly responding to the tragic events in Christchurch and reassuring residents there they will not be faced with penalties if they are unable to keep up with their tax obligations as a result of the earthquake. This will be welcome by...

Interesting stats from the Australian Tax Office

According to a document on the integrity of GST systems in small to medium enterprises issued by the Australian Tax Office recently: - In 2009-10 the ATO identified on average $AUD42,000 of under reported GST for every small to medium enterprise they investigated. - A...

What not to do when dealing with the tax department

A recent case is littered with examples of how not to handle your tax affairs. Case 2 2011 NZTRA 11 The taxpayer wanted to challenge assessments issued by the IRD. The court said she couldn't because of the way she managed her tax affairs. She didn't even get a chance...