Shareholder Issues 2 September 2014

Size: px
Start display at page:

Download "Shareholder Issues 2 September 2014"

Transcription

1 Shareholder Issues 2 September 2014 Questions & Answers Q1: Sorry I m confused; you mentioned the 66% rule again. Does that mean if you pay a salary of $100,000 with PAYE deducted (paid regularly through year) can you pay a shareholder salary of $50,000 at the end of the year without PAYE deducted? A1. No, it s an all or nothing approach. srd 3(3) states - The person may choose to treat all amounts paid to them in the income year in their capacity as employee of the close company as income other than from a PAYE income payment. Q2. Attribution - Is it legitimate deduction to pay spouse of person providing services for admin type duties? A2. Yes, there is no problem paying a spouse a fair market salary/wage for services actually rendered. Q3. LTC - Property Investment Co, is it legitimate to pay management fee to one of shareholder for administration duties with respect to the company? A3. Yes, the working owner definition and deductibility provision supplements the general permission which means if you satisfy the general permission, you don t need to rely on sdc 3B for a deduction. sdc 3B is not designed to disallow deductions, but rather allow certain deductions which may not otherwise be available. Provided the management fee is fair and reasonable and reflects services actually provided, and those services have the necessary connection/link with the LTC business/income earning activity, they will be deductible under the general permission. Q4. But PAYE versus non PAYE is all or nothing...following earlier Q what happens if Attribution rules cause profit to a shareholder drawing PAYE salary A4. In terms of the attribution rules, the mechanism for attributing income to a service provider does not deem the amount attributed to be a PAYE income payment. It merely treats the amounts as income of the individual and not of the company for income tax purposes. Accordingly, this would not upset the ability to pay non-paye deducted salaries, nor would the attributed amount be deemed a PAYE income payment and subject to PAYE.

2 Q5. What happens if Attribution rules cause profit to a shareholder drawing PAYE salary A5. As per A4 above. The attribution rules apply but don t impact on PAYE/non-PAYE payments. Q6. Can we pay a PAYE salary from a trading trust, and also make an income distribution to the same person as a beneficiary? A6. Yes, there are no problems paying a PAYE salary from a trading trust a trading trust is no different than any other employer in that regard. However, you can t pay a non -PAYE shareholder salary from a trading trust. Q7. Please clarify the purpose / application of the 66% rule referred to earlier in the seminar. A7. This provision dates back to the Income Tax Act 1976 so I can t say exactly why it was introduced. However, I assume it is there to allow shareholder employees of small/close companies to opt into the provisional tax regime rather than the PAYE regime, presumably to give them the flexibility to adjust their salaries depending on the performance of the company. Q8. Re Excessive Remuneration - how should the added requirement for close company remuneration not influenced by relationship be applied? A8. Refer response to Q28 Q9. For contract services to a shareholder employee, can we pay withholding tax as opposed to PAYE? (We meant one or the other - withholding or PAYE, not both) A9. Withholding tax obligations are also contained within PAYE income payments per srd 3 and are now referred to as schedular payments. They capture payments such as director s fees, farm contract work, commercial cleaning and maintenance. As such, they are all caught by the rule in srd 3(3) all or nothing. This would mean if you deduct withholding tax from payments for contract services provided, you would be forced to deduct PAYE in relation to a shareholder salary. Q10. What happens when your PAYE salary does not reach the Penny v Hooper threshold? A10. This would be a bit like the attributions rules see A4. If IRD challenged the amount payable and decided to assess the shareholder for a larger portion of the company profits, this would not be done by way of a shareholder-salary on which PAYE may need ot be deducted. IRD would simply assess the shareholder for the additional income and remove it from the company s assessment. Page 2 of 9

3 Q11. What happens when you have a coy with attribution issues and a PAYE salary has been paid? What do you do with surplus profits? A11. See A4 above. Q12. What happens if a client s company accounts are not filed on time does this mean you cannot declare a shareholders salary? A12. No, you can still declare a shareholder salary nothing hinges on filing the returns on time. But, remember, you have to show the shareholder salary was incurred at balance date and paid within the time frame for filing the return. Therefore, you would need to at the very least have credited the shareholders current account with the salary amount by the due date for filing. Q13. Can we pay one shareholder a PAYE salary and another shareholder a non PAYE salary? A13. Yes, absolutely no problems with this. The issues of PAYE v non-paye applies on an individual basis. The choice is that of the shareholder-employee not the company. Q14. If we ceased PAYE payments in February and still need to do the 'top up' payment for the year, would we open PAYE registration for June to reflect the final payment to be made within the 63 days? A14. Yes, assuming we can show the salary was incurred at 31 March, we would have until 2 June to pay the salary, and this would trigger a PAYE liability in the next PAYE return (20 July for a once per month filer). Q15. If there are 2 shareholders, one can be on PAYE and another on non PAYE? A15. Yes, see A13 Q16. Can you claim GST on the reimbursing of depreciation component? A16. No, there is no GST component on a reimbursement of depreciation. Q17. If IRD don't enforce the rules what are the long term implications of us doing it wrongly- re slide on IRD picking up A17. The risk is that one day they change their focus and ping you for interest and penalties. Same consequence as continuing to drive at 109kph on the motorway when the Police start enforcing the 100kph speed limit. Page 3 of 9

4 Q18. Question regarding the GST element of reimbursements. I would have thought that one would not have been allowed to claim back the GST on 100% of a vehicle lease because (36months) there is an interest component. A18. If the lease is an operating lease, the monthly lease fee will be subject to GST. Therefore GST could be claimed back on a reimbursement but only to the extent of the business use. Only a finance lease has an interest component. Q19. Including accountancy fee and ACC (unless invoice received)? A19. The same rules regarding expenditure being incurred apply to accounting fees as they do to any other expense. With respect to ACC, sef 3 provides a specific rule in relation to timing of deductibility. It states that the deduction is allocated to the income year in which the premium is due or payable. Q20. Question regarding accrual of accountancy fee and ACC was during your discussion of allowed accrues - when committed or when not committed. A20. See A19. Q21. What about the interest component of a lease? ex GST A21. See A18 - for tax purposes there is no interest component in an operating lease despite what the commercial reality is. Q22. What do you do if PAYE salary say $150k and then find that salary is less than 80% of income in a personal services company? How do you pay out balance so not in issue re Penny and Hooper? A22. You could pay an additional salary with PAYE deducted or wait until the next year and pay a bonus in relation to the previous year and not deduct PAYE. Key point is that in the latter case, the income is deemed derived and the deduction incurred in the later income year. This may still satisfy IRD that >80-% of the prior year profits have been distributed. Q23. Re salary and Penny and Hooper. If you pay a bonus to get to the 80%, what date is it paid and when do you pay over PAYE? A23. See A22. Q24. Why is the attribution rules not excluded where you have a rental property on the basis that it has substantial equipment as part of the activity? A24. There must be personal services income before the attribution rules apply. Income from a rental property is not personal services so the rules wouldn t apply irrespective of the level of investment in assets. Page 4 of 9

5 Q25. Regarding non-paye salaries, section EA 4 extends the time allowed for crediting or paying shareholder salaries to the last date for filing the relevant return. If a client has provided us with their information long after the return was due, does that mean we don t have the freedom to distribute a shareholder salary for the late year? An example would be a client who has only recently given us their information for the last 3 years. There was no special agreement to extend filing with the IRD. A25. Refer answers above. It may still be possible to show the expense was incurred and the salary credited to account if the client s internal accounting system would show this. Otherwise, technically you may be out of luck. Again, this comes back to the enforcement issue with IRD. They may blindly accept the expense as being incurred and paid without questioning it, but this doesn t make is right Q26. In the LTC section there is a bullet point saying working owners can be reimbursed for expenses tax free but not owners. Does this mean that a shareholder who does not have an employment contract with the LTC can t be reimbursed for expenses they paid out of their own pocket? Likewise, in an ordinary company how about shareholders who do not have PAYE salaries? A26. What this means is that they can t be reimbursed tax free under scw 17 because they are not employees. In theory, any payment by the company to reimburse the LTC owner would be treated as 1. Tax deductible to the LTC, with GST claimable provided a GST invoice is retained, and 2. Taxable income to the owner but the owner could then offset the expenses actually incurred netting the profit down to nil. Point being the owner should disclose the income and expense in their return. We suspect the practical reality is that the owner simply wouldn t bother returning the income or claiming the expense, but that is the practical reality rather than the technically correct position. The other practical reality is that IRD probably won t care either way, but if they ever did raise the issue you would need to produce the relevant evidence (invoices etc). If the expenses were significant, we would recommend disclosing them in the owners return to ensure statute barring can be relied on. In relation to shareholder-employees in an ordinary company, they are still considered an employee for the purposes of scw 17 if they received a non-paye deducted salary. Page 5 of 9

6 Q27. It has been our understanding that GST cannot be claimed on a motor vehicle reimbursing allowance paid to a shareholder employee. In your presentation you suggested that GST can be claimed on a reimbursing allowance. I agree that GST can be claimed on a direct reimbursement, or an allowance paid where there has been a continuous log book. However our practice has been that you can t claim GST on motor vehicle reimbursing allowances. Could you please explain why GST is able to be claimed on a reimbursing allowance and the relevant legislative backing? A27. If the reimbursing allowance is based on actual expenses and the relevant GST invoices are retained, there is no problem with claiming the GST component. If the allowance is based on a fair and reasonable estimate or mileage rates, then there is no GST component that could be claimed. In terms of a statutory reference, there is none. The GST Act does not contain the equivalent of the Income Tax Act 2007 s scw 17. However, there is a long standing IRD policy contained in TIB Vol 4, No 8 (April 1993) relating to reimbursements of home telephone costs. It is widely accepted that the principles underlying this policy apply to all forms of expense reimbursements not just telephones. Q28. With respect to shareholder salaries your slides state that if a NZ tax resident is an adult working 30 plus hours a week in the company you can pay whatever salary you want. Is this suggesting that if we have a husband and wife who are both shareholder employees of a company, both working in excess of 30 plus hours a week, where the husband is full time contracting deriving income and the wife is doing admin, we can credit whatever salaries we like i.e. 50% husband and 50% wife. This scenario assumes the attribution rules don t apply. Or does the requirement re remuneration not influenced by relationship modify this provision? A28. sgb 25 recharacterises excessive remuneration as a dividend. However, sgb 25 does not apply if - (a) the service provider is an adult employed substantially full-time in the business of the company; and (b) the service provider participates in the [management or administration] of the company; and (c) the amount provided to the service provider was not influenced by their relationship with a shareholder or director; and (d) the service provider is a New Zealand resident. The argument/interpretation in the situation above would be that, both the husband and wife are working full time in the business and as equally hard as each other. Therefore, the reason they receive 50% each of the profits of the company as a Page 6 of 9

7 salary has nothing to do with the fact one is a relative of the other and everything to do with the effort put in. Q 29. Can you please provide a reference to the exclusion from FBT for the key man insurance where the benefit is payable to the employee (page 19) A29. scx 31 excludes from the FBT rules a premium for income protection insurance paid by an employer for the benefit of an employee if a payment of the insurance to the employee would be assessable income of the employee. sce 11 deems payments under such policies to be taxable income of the employee. Q30. does the upstream loan situation discussed also apply to debtor balances owing to the subsidiary from the parent? A30. No, provided the terms of trade relating to the debtor balances are the same for the shareholder or associated person, they will not give rise to a deemed dividend. In order for a deemed dividend to arise there must first be shareholder capacity. Where the terms of trade for the shareholder/associate are exactly the same as any other customer, there is no shareholder capacity. Q31. with the TBI - can it be paid to selectted shareholders only or has to be paid to all shareholders? A31. This is more a company law issues than tax but my understanding is that a bonus issue in lieu or a bonus issue elected to be a TBI under scd 8, must be offered to all shareholders of a particular class they are treated exactly the same as any other company dividend/distribution. Q32. Re RWT on Dividends. Please confirm RWT exempt on company shareholder only for the following example, Trust Shldr 1 40%, Trust Shldr 2 20%, Coy Shldr 3 40%. ie RWT applies to trust shareholders, but not coy shareholder. A32. Assuming we have understood the question correctly, RWT must be deducted on interest paid to the company shareholder because it is not in the same group as the company paying the interest (it only holds 40% of the paying company). The exclusion from RWT on interest and dividends contained in srf 2 requires the payer and payee companies to be in the same group. This depends on who the shareholders in the paying company are and we don t have that information. Q33. Page 17 first slide. Is ownership and term of lease and/or A33. These are or tests - apologies for slightly misleading slides. If the term of the lease exceeds 75% of the estimated useful life (45 months for a motor vehicle), the lease is a finance lease and it is irrelevant whether ownership passes or not. Likewise, if the lease provides for ownership to transfer under the lease, it does not matter that the lease term may be less than 45 months. Page 7 of 9

8 Q34. Slide 9 - Sorry, how is LCVI calculated? A34. One of our examples was as follows. Company A Company B LCVI Shares Shares % Trust % Individual % Lowest Common Voting Interest 99.1% In the above example, the Trust owns 99 out of 100 shares in Coy A being 99%. It owns 999/1,000 shares in Coy B or 99.9%. The trust s lowest common voting interest is therefore 99%. The individual owns 1/100 shares in Coy A being 1%. It owns 1/1,000 shares in Coy B or 0.1%. The trusts lowest common voting interest in both Coy A & Coy B is therefore 0.1%. Add the LCVI for the Trust and individual together and we get 99.1%. Q35. Wholly Owned Group : what happens if the group wasn't formally created, does it automatically exist? A35. Yes, it automatically exists. A wholly owned group exists as a question of fact, no elections or otherwise are required (unlike a consolidated group which is a completely different kind of beast altogether). Q36. If S/H C/A has positive balance at start of year, then Od during the year, can we offset credit interest from start of year against interest on OD c/a? A36. Yes, in my view you can offset interest to end up with a net amount payable or receivable. Q37. Regarding Pg 18 summarising preferences for Finance/operating leases- this appears to be the opposite of Pg 17 middle slide A37. Assume this question relates to my narrative to the two slides (the slides themselves are completely different and I can t see where they contradict each other). I ve listened to this part of the Webinar presentation and I can t see where the contradiction lies. With respect to the middle slide on page 17, I commented that full income tax and GST deductions but paying FBT works well when the business use is low. In relation to the slide on page 18 it states the full deductions/fbt option works well when the private use is high. Page 8 of 9

9 Q38. Facts: Company A has shareholder 1 is an individual (1%) and shareholder 2 is a trust (99%). Shareholder 1 current account was overdrawn, but shareholder 2 current account is in credit. Shareholder 1 is the beneficiary and trustee of shareholder 2. Question: Should the company charge interest to shareholder 1? Can shareholder 1 & 2 be treated as 1 because of shareholder being a beneficiary and trustee of shareholder 2? A38. Yes, shareholder 1 s current account is overdrawn and therefore interest needs to be charged. The trust and individual cannot be treated as a single shareholder to overcome the need to charge interest. However, you could consider setting the debts off against each other. Page 9 of 9

SHAREHOLDER ISSUES Part II. Prepared & Presented by nsatax Limited

SHAREHOLDER ISSUES Part II. Prepared & Presented by nsatax Limited SHAREHOLDER ISSUES Part II Prepared & Presented by nsatax Limited Disclaimer This webinar is of a general nature only. Please obtain specific advice on client situations as minor changes in facts may result

More information

Tax Traps For Lawyers. Disclaimer. First Message of the Day. Presented by nsatax Limited. Sir Issac Newton s law of motion. nsatax s law of motion

Tax Traps For Lawyers. Disclaimer. First Message of the Day. Presented by nsatax Limited. Sir Issac Newton s law of motion. nsatax s law of motion Tax Traps For Lawyers Presented by nsatax Limited Disclaimer This webinar is of a general nature only. Please obtain specific advice on client situations as minor changes in facts may result in significantly

More information

A collection of Q & As on LTCs

A collection of Q & As on LTCs A collection of Q & As on LTCs The following have been adapted from questions asked by attendees of the NZICA webinars on the Look-Through Company regime presented by Frank Owen in February 2011. Disclaimer:

More information

Tax Planning Checklist

Tax Planning Checklist Tax Planning Checklist For the year ended 31 March 2014 Contents Year end tax planning checklist 1 General tips on minimising tax 4 Help us to process your records efficiently and quickly 5 Help yourself

More information

NOTES TO ASSIST COMPLETION OF BUSINESS QUESTIONNAIRE

NOTES TO ASSIST COMPLETION OF BUSINESS QUESTIONNAIRE NOTES TO ASSIST COMPLETION OF BUSINESS QUESTIONNAIRE Never change company shareholding without conferring with us because there are tax implications. Please note the following comments 1. Cars If you sell

More information

For the year ended 31 March 2015. Guide to year end tax planning

For the year ended 31 March 2015. Guide to year end tax planning For the year ended 31 March 2015 Guide to year end tax planning Contents Introduction Year end tax planning checklist 5 Current income tax rates 9 Provisional tax overview 11 Penalties regime 13 Record

More information

Death, Estates & Relationship Property Issues

Death, Estates & Relationship Property Issues Death, Estates & Relationship Property Issues Prepared & Presented by nsatax Limited Disclaimer This Seminar is of a general nature only. Please obtain specific advice on client situations as minor changes

More information

FBT Tips and Tricks. Disclaimer. What We Will Cover Today. Prepared & Presented by nsatax Limited

FBT Tips and Tricks. Disclaimer. What We Will Cover Today. Prepared & Presented by nsatax Limited FBT Tips and Tricks Prepared & Presented by nsatax Limited Disclaimer This seminar is of a general nature only. Please obtain specific advice on client situations as minor changes in facts can cause significantly

More information

2007 ANNUAL ACCOUNTS QUESTIONNAIRE Financial year ended 1 April 2006 to 31 March 2007

2007 ANNUAL ACCOUNTS QUESTIONNAIRE Financial year ended 1 April 2006 to 31 March 2007 Business Name Main Contact Email Mobile Phone Please check the list below to ensure you have provided all the applicable information and return this completed questionnaire with your records. Incomplete

More information

2012 Annual Financial Statements Questionnaire

2012 Annual Financial Statements Questionnaire Nair & Chen Chartered Accountants Limited 280 Great South Rd PO BOX 74-322 Greenlane Auckland 1051, New Zealand 2012 Annual Financial Statements Questionnaire Business Name: Financial Year ended: 2012

More information

Look-through companies

Look-through companies IR 879 May 2014 Look-through companies A guide to the look-through company rules 2 LOOK-THROUGH COMPANIES www.ird.govt.nz Go to our website for information, and to use our services and tools. myir secure

More information

Fundamentals of Australian Taxation. Snehal Shah Director GMK Partners Pty Ltd

Fundamentals of Australian Taxation. Snehal Shah Director GMK Partners Pty Ltd Fundamentals of Australian Taxation Snehal Shah Director GMK Partners Pty Ltd Disclaimer This presentation is of a general nature only and is not intended to be relied upon as, nor to be a substitute for,

More information

SAMA CONFERENCE Tax and the Doctor Presented By Hassen Kajie

SAMA CONFERENCE Tax and the Doctor Presented By Hassen Kajie SAMA CONFERENCE Tax and the Doctor Presented By Hassen Kajie 2 Contents Introduction Income Tax Pay as you earn Value added Tax Capital Gains Tax Donations Tax Estate Duty To incorporate or not Examples

More information

Monash University. Novated Lease Vehicle Policy

Monash University. Novated Lease Vehicle Policy Novated Lease Vehicle Policy Please note: changes and modifications to this policy and its attachments may occur from time to time without prior notice. It is encouraged that you review the policy on the

More information

7.1. What is a director s loan account?

7.1. What is a director s loan account? 7. Directors loan accounts 7.1. What is a director s loan account? A director s loan account (DLA) (also known as a director s current account) is a notional balance between a company and its directors.

More information

Paying your way. Tax issues for the self employed

Paying your way. Tax issues for the self employed Paying your way Tax issues for the self employed May 2012 Tax issues for the self employed This is a brief overview of tax issues that affect the self employed. Understanding your tax responsibilities

More information

Individual income tax return guide

Individual income tax return guide IR 3G May 2013 Individual income tax return guide 2013 Please read page 5 to see if you need to file this return. Complete and send us your IR 3 return by 7 July 2013, unless you have an extension of time

More information

Look Through Company: Revocation, Liquidation & Share Sale Issues 12 August 2014

Look Through Company: Revocation, Liquidation & Share Sale Issues 12 August 2014 Look Through Company: Revocation, Liquidation & Share Sale Issues 12 August 2014 Questions & Answers All references are to the Income Tax Act 2007 unless stated otherwise. Q1: If the shareholders revoke

More information

Tax facts. Annual tax rates and dates 2014-2015 as of 1 April 2014

Tax facts. Annual tax rates and dates 2014-2015 as of 1 April 2014 Tax facts Annual tax rates and dates 2014-2015 as of 1 April 2014 Contents 03 Income tax rates 05 Goods and services tax (GST) 06 Tax penalties and interest 08 Fringe benefit tax (FBT) 10 Depreciation,

More information

Year-end Tax Planning Guide - 30 June 2013 BUSINESSES

Year-end Tax Planning Guide - 30 June 2013 BUSINESSES Year-end Tax Planning Guide - 30 The end of the financial year is fast approaching. In the lead up to 30 June, this newsletter covers some of the year-end tax planning matters for your consideration. BUSINESSES

More information

CANADIAN CORPORATE TAXATION. A General Guide January 31, 2011 TABLE OF CONTENTS INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1

CANADIAN CORPORATE TAXATION. A General Guide January 31, 2011 TABLE OF CONTENTS INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1 CANADIAN CORPORATE TAXATION A General Guide January 31, 2011 TABLE OF CONTENTS PART A PAGE INCORPORATION OF A BUSINESS 1 POTENTIAL ADVANTAGES OF INCORPORATION 1 POTENTIAL DISADVANTAGES OF INCORPORATION

More information

Tax facts & figures New Zealand

Tax facts & figures New Zealand Tax facts & figures New Zealand 2013 New Zealand Tax facts & figures 2013 For the latest information on developments in tax law and policy visit our web site at: pwc.co.nz New Zealand Tax facts & figures

More information

DOING BUSINESS IN GERMANY Overview on Taxation

DOING BUSINESS IN GERMANY Overview on Taxation DOING BUSINESS IN GERMANY Overview on Taxation March 2015 1. Introduction 1.1. Generally, taxes are administered and enforced by the competent local tax office. These local tax offices administer in particular

More information

Tax facts & figures New Zealand

Tax facts & figures New Zealand Tax facts & figures New Zealand 2012 2 PwC New Zealand Tax facts & figures 2012 Contents Liability to income tax Imposition of income tax 7 Gross income 7 Exempt income 8 Allowable deductions 8 Income

More information

ebrief for freelancers and contractors Borrowing company money

ebrief for freelancers and contractors Borrowing company money ebrief for freelancers and contractors Borrowing company money The facts behind the Directors Loan Account Taking money from the business for personal use when trading as a partnership or sole trader is

More information

10 EASY STEPS TO MANAGING CONTRACTING

10 EASY STEPS TO MANAGING CONTRACTING 10 EASY STEPS TO MANAGING CONTRACTING Working as a contractor is incredibly rewarding, both financially and professionally. The challenge of contracting is simple you are an independent professional judged

More information

Individual income tax return guide

Individual income tax return guide IR 3G March 2014 Individual income tax return guide 2014 Please read page 5 to see if you need to file this return. Complete and send us your IR 3 return by 7 July 2014, unless you have an extension of

More information

IR 274 July 2014. Imputation. A guide for New Zealand companies

IR 274 July 2014. Imputation. A guide for New Zealand companies IR 274 July 2014 Imputation A guide for New Zealand companies 2 IMPUTATION Introduction The dividend imputation system lets companies pass on to their shareholders credits for the New Zealand income tax

More information

Business expenses are a common example of a transaction which will show up in a DLA.

Business expenses are a common example of a transaction which will show up in a DLA. .1. INTRODUCTION (DLA) simply describes the situation where either the company owes a director money or vice versa. Typically, a DLA is first created shortly before a company first starts to trade where

More information

Taxation Considerations in the Purchase and Sale of a Business. Greg Vale

Taxation Considerations in the Purchase and Sale of a Business. Greg Vale Taxation Considerations in the Purchase and Sale of a Business Presented by Level 12, 111 Elizabeth Street SYDNEY NSW 2000 T: +61 2 9993 3833 F: +61 2 9993 3830 W: www.bvtaxlaw.com.au E: info@bvtaxlaw.com.au

More information

Inside this Issue. Tax Issues With Insolvent Entities

Inside this Issue. Tax Issues With Insolvent Entities March 2008 Inside this issue: Tax Issues with Insolvent Entities Directors: Inside this Issue Given the current climate and whilst not wishing to put a damper on things we thought it timely to outline

More information

Life Assurance Policies

Life Assurance Policies clarityresearch Life Assurance Policies Summary 1. Some life assurance policies are not taken out as a means of purely providing life insurance (for this subject, please see the Research Notes in the Protection

More information

Individual income tax return guide

Individual income tax return guide IR 3G April 2012 Individual income tax return guide 2012 Please read page 5 to see if you need to file this return. Complete and send us your IR 3 return by 7 July 2012, unless you have an extension of

More information

Trusts and estates income tax rules

Trusts and estates income tax rules IR 288 June 2012 Trusts and estates income tax rules Types of trusts and how they re taxed 2 TRUSTS AND ESTATES www.ird.govt.nz Go to our website for information, services and tools. Secure online services

More information

IR 361 April 2011. Tax and your property transactions

IR 361 April 2011. Tax and your property transactions IR 361 April 2011 Tax and your property transactions 2 Tax and your property transactions www.ird.govt.nz Go to our website for information, services and tools. Secure online services login to check your

More information

DOING BUSINESS IN AUSTRALIA. Presented by Sean Urquhart Tax Partner at Nexia Australia T: 61 2 9251 4600 E: surquhart@nexiacourt.com.

DOING BUSINESS IN AUSTRALIA. Presented by Sean Urquhart Tax Partner at Nexia Australia T: 61 2 9251 4600 E: surquhart@nexiacourt.com. DOING BUSINESS IN AUSTRALIA Presented by Sean Urquhart Tax Partner at Nexia Australia T: 61 2 9251 4600 E: surquhart@nexiacourt.com.au DISCLAIMER The material contained in this publication is in the nature

More information

Related parties debt remission

Related parties debt remission Issue 3/2015 Related parties debt remission Related parties debt remission Inland Revenue has released an Officials Issues Paper seeking feedback on proposed legislative changes intended to make the debt

More information

Salary Packaging. Information Kit. Catholic Schools Office Diocese of Lismore

Salary Packaging. Information Kit. Catholic Schools Office Diocese of Lismore Salary Packaging Information Kit Catholic Schools Office Diocese of Lismore 13 TABLE OF CONTENTS SALARY PACKAGING... 1 HOW IT WORKS... 1 SALARY PACKAGING AND THE OPERATION OF INCOME TAX LEGISLATION...

More information

Fundamentals Level Skills Module, Paper F6 (MYS)

Fundamentals Level Skills Module, Paper F6 (MYS) Answers Fundamentals Level Skills Module, Paper F6 (MYS) Taxation (Malaysia) Judlee Sdn Bhd June 20 Answers and Marking Scheme Marks (a) Income tax computation Year of assessment 200 Net profit before

More information

However, this week s announcement particularly in regards to big business audits includes a growing focus on the following areas:

However, this week s announcement particularly in regards to big business audits includes a growing focus on the following areas: Issue 5, August 2003 Briefly in Tax Taxation Specialists - Business Advisors THIS ISSUE ATO Spotlight is Bigger and Brighter for 2003-04 Areas under the spotlight with the ATO are expanding once again,

More information

Tax planning for retirement By Jenny Gordon, head: Retail Legal

Tax planning for retirement By Jenny Gordon, head: Retail Legal Tax planning for retirement By Jenny Gordon, head: Retail Legal Agenda Tax deductions on contributions from 1 March 2015 Non-retirement funding income Tax during build up Tax on transfers Tax on lump sum

More information

TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS

TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS TAXATION OF INTEREST, DIVIDENDS AND CAPITAL GAINS IN CYPRUS LAWS AND DECREES The Income Tax (Amendment) Law of 2005 The Special Contribution for Defence (Amendment) Law of 2004 The Assessment and Collection

More information

Fundamentals Level Skills Module, Paper F6 (HKG)

Fundamentals Level Skills Module, Paper F6 (HKG) Answers Fundamentals Level Skills Module, Paper F6 (HKG) Taxation (Hong Kong) December 200 Answers and Marking Scheme Cases are given in the answers for educational purposes. Unless specifically requested,

More information

IR 261 August 2014. Direct selling. Tax facts for people who distribute for direct selling organisations

IR 261 August 2014. Direct selling. Tax facts for people who distribute for direct selling organisations IR 261 August 2014 Direct selling Tax facts for people who distribute for direct selling organisations www.ird.govt.nz 3 Contents Introduction 4 www.ird.govt.nz 4 How to get our forms and guides 4 Part

More information

technical factsheet 180 Related parties

technical factsheet 180 Related parties technical factsheet 180 Related parties CONTENTS 1. Introduction 1 2. Legislative requirement 1 3. Accounting standards 3 4. Example 5 5. Checklist 7 6. Sources of information 10 This technical factsheet

More information

Small Business Tax Interview Checklist - 2011 Tax Return

Small Business Tax Interview Checklist - 2011 Tax Return The interview checklist is a series of questions to assist clients and tax practitioners complete tax returns efficiently and consistently and to help identify relevant tax issues for special consideration.

More information

Tax on buy to let properties

Tax on buy to let properties Tax on buy to let properties This article covers the basics of how the various different forms of tax may affect your rental property, you can download our guide as a free pdf to keep here. Do you pay

More information

Advanced guide to capital gains tax concessions for small business 2013 14

Advanced guide to capital gains tax concessions for small business 2013 14 Guide for small business operators Advanced guide to capital gains tax concessions for small business 2013 14 For more information visit ato.gov.au NAT 3359 06.2014 OUR COMMITMENT TO YOU We are committed

More information

Year-end Tax Planning Guide - 30 June 2014 BUSINESSES

Year-end Tax Planning Guide - 30 June 2014 BUSINESSES Year-end Tax Planning Guide - 30 The end of the financial year is fast approaching. In the lead up to 30 June, this newsletter covers some of the year-end tax planning matters for your consideration. BUSINESSES

More information

AUTOMOTIVE UPDATE. Trust distribution. Division 7A loan and unpaid present entitlement. Partner, Brisbane Tel: +61 7 3237 5744 mark.ward@bdo.com.

AUTOMOTIVE UPDATE. Trust distribution. Division 7A loan and unpaid present entitlement. Partner, Brisbane Tel: +61 7 3237 5744 mark.ward@bdo.com. AUTOMOTIVE UPDATE AUTOMOTIVE tax planning 2013 With another financial year end fast approaching, BDO s automotive team provides some guidance on practical measures to minimise your dealership s tax position

More information

Accounting For Your Future INCORPORATION OF PROFESSIONALS IN ONTARIO. Details of the Legislation (Ontario Business Corporations Act)

Accounting For Your Future INCORPORATION OF PROFESSIONALS IN ONTARIO. Details of the Legislation (Ontario Business Corporations Act) Accounting For Your Future INCORPORATION OF PROFESSIONALS IN ONTARIO Author: Hugh Faloon, CA, CFP, TEP, Tax Partner Status of Particular Professional Bodies The following professions have been allowed

More information

INDEX: WWW.FIRSTBOOKKEEPING.COM.AU

INDEX: WWW.FIRSTBOOKKEEPING.COM.AU INDEX: ü Step 1 Getting started in business registrations Page 3-4 ü Step 2 What you need to know about business income tax Page 5 6 ü Step 3 Business Expenses what to claim Page 7 ü Step 4 Working from

More information

Around the Office Commercial Newsletter

Around the Office Commercial Newsletter Around the Office Commercial Newsletter June 2013 P 03 365 0881 F 03 377 2991 E admin@brownglass.co.nz www.brownglass.co.nz THIS EDITION ACC CoverPlus and CoverPlus Extra Fringe Benefits & the Company

More information

ANNUAL QUESTIONNAIRE BUSINESS 2015

ANNUAL QUESTIONNAIRE BUSINESS 2015 ANNUAL QUESTIONNAIRE BUSINESS 2015 NAME ADDRESS PHONE NUMBER FAX NUMBER MOBILE NUMBER EMAIL ADDRESS YEAR ENDED Please amend/complete the above information if incorrect or not completed TERMS OF ENGAGEMENT

More information

Notes on the Small Business Tax Interview Checklist

Notes on the Small Business Tax Interview Checklist Notes on the Small Business Tax Interview Checklist The interview checklist are a series of questions to assist client sand tax practitioners complete tax returns efficiently and consistently and help

More information

IR 435 April 2011. Qualifying companies. A guide to qualifying company tax law

IR 435 April 2011. Qualifying companies. A guide to qualifying company tax law IR 435 April 2011 Qualifying companies A guide to qualifying company tax law www.ird.govt.nz Go to our website for information, services and tools. Secure online services login to check your account information,

More information

TRADING TRUST BUSINESS INFORMATION

TRADING TRUST BUSINESS INFORMATION TRADING TRUST BUSINESS INFORMATION PLEASE NOTE: The Penalties Regime came into effect on 1 April 1997. It is the taxpayer s responsibility to ensure that all information is true and correct! Has the Trust

More information

Company tax return 2015

Company tax return 2015 Company tax return 2015 Day Month Year Day Month Year to Or specify period if part year or approved substitute period tes to help you prepare this tax return are in the Company tax return instructions

More information

Estate planning: Taxation of deceased estates

Estate planning: Taxation of deceased estates TB 20 Estate planning: Taxation of deceased estates Issued on 15 November 2010. Summary Under Australian law there are no duties, however, income and some capital transactions may be taxed as a consequence

More information

REQUIRED FOR YEAR END 31 MARCH 2015. Your personal information

REQUIRED FOR YEAR END 31 MARCH 2015. Your personal information REQUIRED FOR YEAR END 31 MARCH 2015 Your personal information Your details Personal details IRD number Contact details - to ensure our records are up to date, please complete the following Preferred contact

More information

Year End Questionnaire 31 March 2011

Year End Questionnaire 31 March 2011 Year End Questionnaire 31 March 2011 We are at the end of another financial year and it is therefore timely to remind you of the need for you to begin collating your records to assist us in the preparation

More information

2015 YEAR END TAX & SUPERANNUATION PLANNING GUIDE

2015 YEAR END TAX & SUPERANNUATION PLANNING GUIDE 2015 YEAR END TAX & SUPERANNUATION PLANNING GUIDE We are pleased to provide our year end tax planning guide for 2015. Tax Planning should be done on a regular basis throughout the year. However, these

More information

Small Business Tax Interview Checklist - 2010 Income Tax Return

Small Business Tax Interview Checklist - 2010 Income Tax Return Please answer the following and supply supporting information where applicable. This will guide the completion of the business and professional items schedule. 2009/2010 refers to the period from 1 July

More information

SMALL BUSINESS TAX INTERVIEW CHECKLIST 2012 INCOME TAX RETURN

SMALL BUSINESS TAX INTERVIEW CHECKLIST 2012 INCOME TAX RETURN The interview checklist is a series of questions to assist clients and tax practitioners complete tax returns efficiently and consistently and to help identify relevant tax issues for special consideration.

More information

ATO Imposes Changes to Deemed Dividend Rules for Trust Distributions TAXPAYER ALERT

ATO Imposes Changes to Deemed Dividend Rules for Trust Distributions TAXPAYER ALERT As the end of financial year quickly draws to a close, we have had one of our senior accountants, Tim Hase, put together a newsletter with the various tax planning tools available for businesses, self-employed

More information

TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%.

TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. TURKEY CORPORATE TAX (KURUMLAR VERGISI) The basic rate of corporation tax for resident and non-resident companies in Turkey is 20%. Corporations in Turkey can be regarded as either limited or unlimited

More information

tes for Guidance Taxes Consolidation Act 1997 Finance Act 2014 Edition - Part 13

tes for Guidance Taxes Consolidation Act 1997 Finance Act 2014 Edition - Part 13 Part 13 Close companies CHAPTER 1 Interpretation and general 430 Meaning of close company 431 Certain companies with quoted shares not to be close companies 432 Meaning of associated company and control

More information

How To Setup & Use Insight Salon & Spa Software Payroll - Australia

How To Setup & Use Insight Salon & Spa Software Payroll - Australia How To Setup & Use Insight Salon & Spa Software Payroll - Australia Introduction The Insight Salon & Spa Software Payroll system is one of the most powerful sections of Insight. It can save you a lot of

More information

Summary of Significant Accounting Policies FOR THE FINANCIAL YEAR ENDED 31 MARCH 2014

Summary of Significant Accounting Policies FOR THE FINANCIAL YEAR ENDED 31 MARCH 2014 46 Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements. The Company and

More information

University-wide. Staff Only Students Only Staff and Students. Vice-Chancellor. Director, Human Resources

University-wide. Staff Only Students Only Staff and Students. Vice-Chancellor. Director, Human Resources Name of Policy Salary Packaging Policy Description of Policy This policy covers the provision for Salary Packaging at ACU. University-wide Policy applies to Specific (outline location, campus, organisational

More information

Estate or trust return guide 2010

Estate or trust return guide 2010 IR 6G February 2010 Estate or trust return guide 2010 Read this guide to help you fill in your IR 6 return. If you need more help, read our booklet Trusts and estates income tax rules (IR 288). Complete

More information

Large Company Limited. Report and Accounts. 31 December 2009

Large Company Limited. Report and Accounts. 31 December 2009 Registered number 123456 Large Company Limited Report and Accounts 31 December 2009 Report and accounts Contents Page Company information 1 Directors' report 2 Statement of directors' responsibilities

More information

INCORPORATING YOUR BUSINESS

INCORPORATING YOUR BUSINESS November 2014 CONTENTS Advantages of incorporation Advantages of an SBC Summary INCORPORATING YOUR BUSINESS If you carry on a business, there are many tax planning opportunities which become available

More information

Jones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements

Jones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2009 End date: 31st May 2010 Contents of the

More information

Chapter 18. Corporations: Distributions Not in Complete Liquidation. Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A.

Chapter 18. Corporations: Distributions Not in Complete Liquidation. Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A. Chapter 18 Corporations: Distributions Not in Complete Liquidation Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A. Raabe Copyright 2004 South-Western/Thomson Learning Taxable Dividends

More information

Provinces and territories also impose income taxes on individuals in addition to federal taxes

Provinces and territories also impose income taxes on individuals in addition to federal taxes Worldwide personal tax guide 2013 2014 Canada Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible Are tax return extensions possible Canada Revenue Agency (CRA)

More information

Wages definition manual

Wages definition manual Wages definition manual Information for employers Controlled uncontrolled if printed/copied Page 1 of 14 Table of contents 1. Introduction... 4 1.1 Reviews and queries... 4 1.2 Definitions dictionary...

More information

Individual & Family Tax Measures

Individual & Family Tax Measures Budget Budget Highlights Highlights CHANGES & OTHER IMPORTANT INFORMATION Individual & Family Tax Measures Individual Tax Rates The individual tax rates remain unchanged for 2013/2014 and are listed below.

More information

Pay as you go withholding

Pay as you go withholding Introduction for employers Pay as you go withholding What you need to know Our commitment to you We are committed to providing you with accurate, consistent and clear information to help you understand

More information

Perriam & Partners Ltd Chartered Accountants & Business Advisors

Perriam & Partners Ltd Chartered Accountants & Business Advisors Perriam & Partners Ltd Chartered Accountants & Business Advisors 2014 BUSINESS QUESTIONNAIRE BUSINESS NAME: E-MAIL ADDRESS: CONTACT PERSON: HOME PHONE NUMBER: CELLPHONE NUMBER: ADDRESS: AUTHORITY AND TERMS

More information

Tax and Small Business: Navigating the ATO minefield as June 30 draws closer

Tax and Small Business: Navigating the ATO minefield as June 30 draws closer June 23, 2015 Tax and Small Business: Navigating the ATO minefield as June 30 draws closer The small business sector has variously been described as the engine room of the economy, as well as the biggest

More information

Employment status: employee in terms of employment law. generally taxed as employees. Tax on profits:

Employment status: employee in terms of employment law. generally taxed as employees. Tax on profits: Sole trader Vs Limited company The comparison is for a trading business. Many of the points summarised here are not relevant if you want to compare individuals or companies that manage investment business.

More information

www.ag.ch/steuern 1 on 13

www.ag.ch/steuern 1 on 13 Volume / Register Vol. II Reg. 11 Issue date July 30, 2015 DEPARTMENT OF FINANCES AND RESOURCES Cantonal Tax Office Status as at July 30, 2015 Valid as of Contents 1. Holding Companies... 3 1.1 Legal Bases...

More information

Advanced guide to capital gains tax concessions for small business 2012 13

Advanced guide to capital gains tax concessions for small business 2012 13 Guide for small business operators Advanced guide to capital gains tax concessions for small business 2012 13 For more information visit ato.gov.au NAT 3359 06.2013 OUR COMMITMENT TO YOU We are committed

More information

IR274 March Imputation. A guide for New Zealand companies

IR274 March Imputation. A guide for New Zealand companies IR274 March 2016 Imputation A guide for New Zealand companies 2 IMPUTATION Introduction The dividend imputation system lets companies pass on to their shareholders credits for the New Zealand income tax

More information

SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES

SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES SALARY PACKAGING SUPERANNUATION GUIDE TO EMPLOYEES Superannuation Introducing Salary Packaging Salary packaging has been made available to all staff of the University through the Enterprise Agreement process.

More information

Bardi Management Group Pty Limited

Bardi Management Group Pty Limited Bardi Management Group Pty Limited Suite 5, 57 Bells Line of Road (Cnr Grose Vale Road) North Richmond, NSW 2754 PO Box 129 North Richmond, NSW 2754 Telephone (02) 4571 3599 Fax (02) 4571 2548 Index The

More information

INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting

INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial

More information

ANNUAL BUSINESS CHECKLIST. 2011 Financial Year

ANNUAL BUSINESS CHECKLIST. 2011 Financial Year ANNUAL BUSINESS CHECKLIST 2011 Financial Year Please take the time to complete this checklist as it is a very important part of the accounting process. It helps you: Identify and provide the information

More information

EXPLANATION OF INCOME TAX TREATMENT OF BAD DEBTS SINCE THE INTRODUCTION OF ACCRUALS RULES

EXPLANATION OF INCOME TAX TREATMENT OF BAD DEBTS SINCE THE INTRODUCTION OF ACCRUALS RULES APPENDIX C TO TIB NO.3, SEPTEMBER 1989 EXPLANATION OF INCOME TAX TREATMENT OF BAD DEBTS SINCE THE INTRODUCTION OF ACCRUALS RULES CONTENTS Page 1 INTRODUCTION 2 2 Bad Debts Outside the Accruals Regime 2

More information

End of Year Handbook. Prince. Page 1. Chartered Accountants

End of Year Handbook. Prince. Page 1. Chartered Accountants Prince Chartered Accountants End of Year Handbook RSM Prince is committed to working with our clients to provide real value, true teamwork and innovative, practical solutions, and to exceed your expectations

More information

Managing the tax affairs of someone who has died

Managing the tax affairs of someone who has died Page 1 of 13 Managing the tax affairs of someone who has died Introduction This guide will help you finalise the tax affairs of a deceased person. It tells you what tax returns you may need to lodge and

More information

Managed Service Companies

Managed Service Companies Managed Service Companies GUIDANCE on Chapter 9, Part 2 and Section 688A, Part 11 Income Tax (Earnings and Pensions) Act 2003 1 Index 1. Introduction 2. Chapter 9 ITEPA: Managed Service Companies 2.1 Meaning

More information

SC REVENUE RULING #06-12. All previous advisory opinions and any oral directives in conflict herewith.

SC REVENUE RULING #06-12. All previous advisory opinions and any oral directives in conflict herewith. State of South Carolina Department of Revenue 301 Gervais Street, P. O. Box 125, Columbia, South Carolina 29214 Website Address: http://www.sctax.org SC REVENUE RULING #06-12 SUBJECT: Tax Rate Reduction

More information

Employee Starter Pack. www.sgfleet.com

Employee Starter Pack. www.sgfleet.com Employee Starter Pack www.sgfleet.com Table of Contents Welcome to sgfleet Novated Leasing 3 What is a Novated Lease? 3 The benefits of a Novated Lease 4 Choice and flexibility 4 Ability to achieve real

More information

0-14,000 10.5% 14,001-48,000 17.5% Companies (including branches or permanent establishments of non-resident companies & unit trusts)

0-14,000 10.5% 14,001-48,000 17.5% Companies (including branches or permanent establishments of non-resident companies & unit trusts) TAX FACTS 2016 INCOME TAX RATES INDIVIDUALS Income 0-14,000 10.5% 14,001-48,000 17.5% 48,001-70,000 30% Over 70,000 33% COMPANIES Companies (including branches or permanent establishments of non-resident

More information

Frequently Ask Questions

Frequently Ask Questions Frequently Ask Questions This document has been prepared to answer questions that you are likely to have on the new SalarySacrifice4Cars scheme ( the car scheme ). It is set out in 3 sections The car scheme

More information

Company Tax Return Preparation Checklist 2010

Company Tax Return Preparation Checklist 2010 Company Tax Return Preparation Checklist 2010 The following income tax return checklist should be completed in conjunction with the preparation of tax reconciliation return workpapers. The checklist provides

More information

GUIDE TO SALARY PACKAGING A CAR

GUIDE TO SALARY PACKAGING A CAR GUIDE TO SALARY PACKAGING A CAR TABLE OF CONTENTS INTRODUCTION 3 WHY SALARY PACKAGING A CAR WITH PAYWISE 3 HOW SALARY PACKAGING A CAR WORKS 4 EMPLOYMENT TERMINATION 6 EARLY TERMINATION 6 GET STARTED 6

More information