Tax loopholes

Last week the government announced its “final decisions on proposals to address base erosion and profit shifting” – in other words, closing loopholes on international tax dodgers. The announcement was made without a lot of... Read more

Budget 2017

The National Government has produced a measured and politically clever Budget. Where this budget differs from its previous budgets is that it has opened its wallet and distributed the benefits of eight years of conservative management and the... Read more

Land banking and tax

There has been a great deal of attention given to Auckland’s Unitary Plan. For some landowners, that will be good news financially as the value of their property rises to reflect a more intensive economic use. There may however be a tax... Read more

Tax matters: P lab repair costs

Are costs incurred to repair damage to a rental property from use as a P lab tax deductible? The answer is not as straight forward as one may think. Here are some key points. If the repair cost is covered by insurance then any compensation received... Read more

Foreign trusts and the two year test

The Shewan report into foreign trusts was tabled at the end of last month. As expected, it found the disclosure laws relating to foreign trusts were “inadequate”. It said, “The rules are not fit for purpose in the context of... Read more

Tax tips – The bright-line rule – defining the start and end of the two-year period

The bright-line rule only applies to residential properties bought on or after 1 October 2015, but exactly what is the purchase and sales dates is causing some confusion. Under this rule taxpayers pay tax on the gain in resale value of a property... Read more

Taxing matters and the Panama Papers

Tax has been headline news since the release of the “Panama Papers” – the huge trove of hacked files from a Panama based legal firm. The highly confidential papers are particularly damaging to those using shady offshore tax havens... Read more

Tax matters

On 17 September Stuff reported on the conviction of Christchurch property developer, David Henderson, on seven charges of tax fraud. The case is a useful reminder for business owners. Here are some of the key points from the article: The charges... Read more

Interest rates and property prices

There are some pretty seismic things happening in the finance markets at present. Last week the Reserve Bank lowered the Official Cash Rate (OCR) by 0.25% and signalled further reductions are possible (the reviews are six-weekly). My translation of... Read more

IRD after their “fair share”

The IRD is getting serious about collecting its “fair share” of tax from property investors. In the last five years its property auditing activities have collected $258m in additional tax. So it’s not surprising a cash-strapped... Read more