INDEX
-
Relevant Business and Taxation Articles
-
Bankruptcy- Tax Position
-
Speeding Up your Computer
-
Minumum Wage Rates
-
GST- Zero rated Supplies
-
GST- Exempt Supplies
-
GST- Secondhand Goods
-
Non-standard Balance Date
RELEVANT BUSINESS AND TAXATION ARTICLES
The McLean and Co. website contains an extensive number of articles prepared by McLean and Co. relating to taxation and business matters. Here are a selection that will be of interest:
 |
Franchising Basics www.mcleanandco.co.nz/Page90.htm
| Tax Audits www.mcleanandco.co.nz/Page33.htm
| Setting Prices www.mcleanandco.co.nz/Page105.htm
| Creating a Successful Market Niche www.mcleanandco.co.nz/Page83.htm |
We are happy to accept new clients. Please contact ourselves at the contact points highlighted above if we can assist you in your accounting and taxation requirements. Our website lists information required for this in the following link:
BANKRUPTCY- TAX POSITION
On bankruptcy all money owed to IRD at the date of bankruptcy , with the exeption of Child Support but including Student Loan amounts, will form part of IRD's claim. IRD will write off any amount that cannot be recovered due to bankruptcy.
A liable person who becomes bankrupt still has to pay their existing Child Support debt, along with any future Child Support liability.
The Official Assignee will receive any tax refunds owing to the bankrupt taxpayer during the term of the bankruptcy. Once discharge from bankruptcy is obtained, any refunds go to the taxpayer , unless there are other post-bankruptcy tax debts.
A new IRD Number is automatically issued by IRD from the date of bankruptcy, so that IRD can keep pre- and post- bankruptcy tax accounts separate. Bankrupt taxpayers need to give their new IRD Number to all parties who previously held the pre-bankruptcy IRD Number e.g employers, banks, and Work and Income (including its StudyLink service for subsequent student loans drawn down)
A bankrupt is required to file all returns due up to the date of bankruptcy. If a bankrupt is required to file for income tax, they must file one return from 1 April to the date of bankruptcy, under the original IRD Number, and another return from the date of bankruptcy until 31 March, under the new IRD number.
SPEEDING UP YOUR COMPUTER
When PCs get slower the chances are they need a clean out. Try the steps below to speed up your PC.
Its unlikely that these steps will harm data on your PC , but we can't be held responsible for any loss of data or other consequences arising for activating these steps.
Cleaning Out Unused Files
This action will delete temporary and unused files that eat up valuable disk space. Disk Cleanup will ask you to identify which disks need cleaning and scan it for files that can be safely deleted
Start-------------> Programmes----------------->Accessories---------------------> System Tools----------------> Disk Cleanup
Defrag
Files which are saved and deleted can quickly become scattered across your hard disk, which slows your PC as it has to search for file fragments before the file can load. Defragging a PC hard disk can take some time and you shouldn't use your PC while it is running, so defrag when you dont need your PC for several hours.
Start-------------> Programmes----------------->Accessories---------------------> System Tools----------------> Disk Defragmenter
MINIMUM WAGES
The minimum wage rates were revised upwards from 24 March, 2003. The new rates are:
|
|
Youths (16-17) |
Adults
(18+) |
|
|
|
|
|
Per hr |
$6.80 |
$8.50 |
|
8 hr Day |
$54.40 |
$68.00 |
|
40 hr Week |
$272.00 |
$340.00 |
The minimum wage rates apply to all types of work and workers aged 16 years and over (including full-time, part-time or casual employees; homeworkers, commission and piece rate workers) with the following exceptions:
§ Under Rate Permits – granted by labour inspectors for workers incapable of earning wages at the appropriate minimum rate prescribed.
§ Training
Rates – applying to apprentices working under apprenticeship contracts
covered by the Industry Training Act.
§ Board and Lodging Deductions – which may reduce the minimum wage by up to 15% for board and up to 5% for lodging.
Note, there is no minimum wage for people under the age of 16.
GST - ZERO RATED SUPPLIES
Goods and Service Tax is calculated at the rate of 0% rather than the standard rate for some supplies. The 0% rate appies to supplies of:
| exported
goods
| exported
services
| goods
situated overseas
| taxable
activities disposed of as going concerns
| newly
refined precious metal
| certain
supplies in respect of which excise duty and petroleum duty are payable. | |
Zero-rating only applies if the supply would otherwise be taxable at the standard rate. Supplies which are taxed at either the standard rate or 0% are termed "taxable supplies"
GST - EXEMPT SUPPLIES
Exempt Supplies are expressly excluded from GST. The following are exempt:
| supplies
of financial services
|
supplies
made by a non-profit body of donated goods and services
| supplies
of residential accommodation, including supplies of leasehold land used
for that purpose
|
supplies
of fine metal (other than those that have been zero-rated)
| the
sale of a house, or the reversionary interest in fee simple estate of
leasehold land, which has been used by the same person in the five years
previous to the sale exclusively for the supply of residential
accommodation
|
penalty
or default interest
| |
A GST registered person who purchases secondhand goods in the course of a taxable activity may be able to claim a secondhand goods credit. A credit can be claimed only if:
| the goods are purchased for the principal purpose of making taxable supplies | ||||
| the
goods are in New Zealand
|
the
sale is a non-taxable supply (e.g. a supply made by an unregistered person or
an exempt supply) by way of sale, and
| payment
has been made during the relevant taxable period | |
NON-STANDARD BALANCE DATES
Non-standard balance dates fall into two categories:
|
An early balance date is one that falls in the period 1 October to 30 March (inclusive) in the six months before 31 March
| A late balance date is one that falls in the period 1 April to 30 September in the six months after 31 March. |
|
Industry |
Balance
Date |
|
Apiarist |
30 November or 31 December |
|
Beef Cattle or Dairy Farming |
31 May |
|
Education and Childcare related Services |
31 December |
|
Fishing |
30 September |
|
Horse Breeding |
31 July |
|
Kiwifruit Orchard |
31 March, 30 April, 31 May or 30 June |
|
Meat Processing or Orchard |
31 August or 30 September |
|
Pipfruit Orchard |
31 December |
|
Seed Dressers |
30 November |
|
Sheep Farming |
30 June |
|
Tobacco Growing |
31 July |
If you wish to apply for a non-standard balance date you need to include the following information in your written application:
| your
full name and IRD number.
| the
industry you belong to
| the
balance date you wish to use
| reasons
why you want a non-standard balance date
| the
names of any associated businesses that already use this balance date and
their IRD number if known)
| |
If you do not belong to one of the industry groups mentioned or you want to use a non-standard balance wish to apply for a non-standard balance date not specified above, you need to include the following additional information in your written application:
| details
of actual or predicted cash flows, stock patterns, customer demands and
seasonal patterns
| any
other information to show that financial accounts prepared to the proposed
non-standard balance date would be more appropriate than using a 31 March
balance date. | |
If we can assist further, please email McLean and Co as follows: