McLEAN AND CO. Chartered Accountants

Accounting          Taxation         Business Advice and Development Assistance           Audits                             

 P.O. Box 10 , Clive         133 Main Rd, Clive           Tel. (06) 8700952          Fax. (06) 8700955 

Email murray@mcleanandco.co.nz                                  Website www.mcleanandco.co.nz

 
 
EMAIL NEWSLETTER  DECEMBER 2007
 
 

Welcome again to the McLean and Co. Newsletter in which we discuss current taxation and business matters. We trust you find it informative.  

 

NEW CLIENTS

We are happy to accept new clients.  We would be happy to assist colleagues and acquaintances as new clients.

 

INDEX

  1. GST- is your Business winding down?

  2. GST- New Due Dates

  3. Do you sell Online?

  4. Are Family Trusts for Everybody?

 

XMAS TIME AND OFFICE DATES

Merry Xmas and Happy New Year to all.  May 2008 be very succcessful business wise to you.  The office will be open through the Xmas- New Year period, but will close down January 5 2008 and not reopen until January 14 2008.

There are still a few outstanding clients pertaining to 2007 income tax return requirements.  We would be happy to see you, if you are available and have your records ready , up to January 4 2008, in regard to these.  We get extremely busy on audit commitments from the time the office reopens in the new year for a two month period and therefore would be able to provide a more prompt service up to January 4 2008 than subsequent.  Please contact the office if you would like to make an appointment.

 

GST- IS YOUR BUSINESS WINDING DOWN

If the value of your taxable supplies within a 12 month period is $40,000 or less, your GST registration becomes voluntary, unless you expect the value of your taxable supplies to exceed $40,000 within the next 12 months.  This means you have the choice- you can stay GST registered , and continue to charge GST, or you can deregister and stop charging or claiming GST.  When you deregister IRD will stop sending you GST returns.  There is a process however to go through however to achieve this, as follows:

It is therefore suggested that you consult McLean and Co before doing so.

 

GST- NEW DUE DATES

Alligned with IRD's new measures to allign provisional tax and GST payments from 1 April 2008 there will be some changes to GST due dates.  GST taxable periods will not change at all- only the due date that you need to file and pay your GST will change.  This means that you will continue to file and pay your GST the same number of times each year as you have in the past.

As the new dates are not consistently the same date each month it is suggested that you refer to the GST taxable period and due date printed on the GST Return that IRD send you each time you receive a GST Return.

The following table indicates the due dates if you file your GST Returns every two months:

If your two monthly GST Taxable Period ends on the last day of

Under the new due dates, your GST Returns and Payments are due on:

January 28 February
March 7 May
May 28 june
July 28 August
September 28 October
November 15 January

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DO YOU SELL ONLINE?

Lots of people sell things they no longer want or need on online auction sites. If the sales aren't part of a business this is usually fine and there are no tax implications.

However if you regularly sell things online you may in fact be in business and may have tax obligations you didn't know about. If you are in business, you should be declaring your sales for income tax purposes.

 

So when are you in business?

As a general guide, you are in business if you:

If any of the above situations apply to you, then you may be operating a business. IRD routinely monitor transactions on online auction sites, and one of the key things that IRD look at in audit processes is to determine if you are in business is how often or how regularly you trade.

 

What are your tax obligations?

Your tax obligations are exactly the same regardless of whether you sell things online or in a shop.

If you are in business, profits on sales are subject to income tax. If your turnover is over $40,000 per year you must also register for goods and services tax (GST). Like any other business you must keep sufficient records for seven years so that we can confirm your income and expenses.

 

 

FAMILY TRUSTS FOR EVERYBODY?

Trusts have been developed in British law over many centuries.  Essentially, they are a protective measure whereby a person (called a settlor) 'gifts' assets to a trust, for the benefit of specific recipients.  This means that these assets no longer belong to the settlor- they belong to the trust- - and must be used for purposes specified by the settlor at the outset.

Major motivational factors why persons decide to set up trusts are:

Negatives relating to trust formation could be:

 

 

 

McLEAN AND CO KNOWLEDGE CENTRE AND ARTICLES ABOUT TAXATION AND BUSINESS IN GENERAL PRESS HERE FOR BUSINESS STARTUP KNOWLEDGE CENTRE PRESS HERE
FOR INFORMATION ABOUT COMPANY INCORPORATION PRESS HERE FOR PREVIOUS MONTH EMAIL NEWSLETTERS PRESS HERE

FOR PROPERTY INVESTMENT AND TAX INFORMATION PRESS HERE

FOR FRANCHISE INVESTMENT AND TAX INFORMATION PRESS HERE


The information provided in this email newsletter is for informational purposes only.   McLean and Co. accept no responsibility for the opinions and information expressed in the information provided and it is provided "as is" without warranty of any kind.    The user assumes the entire risk as to the accuracy and use of this document.   Readers are asked to seek professional advice pertaining to their own circumstances.    The McLean and Co. email newsletter may be copied and distributed subject to the following conditions:
  • All text must be copied without modification and all pages must be included.
  • This document must not be distributed for profit.    

 

If we can assist further, please email McLean and Co as follows:

 CONTACT McLEAN AND CO. BY EMAIL BY CLICKING ON THIS LINK

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