Business & Tax Centre Ltd.

    Business & Tax Centre Ltd, Chartered Accountants, 19 Pembroke Street, HAMILTON, 07 834 0556. For all enquiries please see the contact page.

     

    To keep our customers informed we regularly provide a free newsletter. For your convenience the content of our current newsletter is displayed below. If you prefer a PDF version of the current and older issues of the BizTax Alert you can download them from the 'Newsletters' page.

     

    BizTax Alert Newsletter

    | Summer 2019/2020|

     

    Saving time and cost with tax

     

    Various tax concessions exist that can save significant time and money, but they are often overlooked. You may want to save this article as a handy reminder to take advantage of these options whenever possible.

    Business-related legal fees are tax deductible irrespective of whether they are capital in nature, provided the total amount for the year is $10,000 or less. The concession is not just for companies – trusts and individuals can also take advantage of it.

    Because the concession allows capital expenditure to be claimed, it can be applied to Government has accepted a recommendation by the Tax Working Group to increase and expand it to other categories of professional fees and some feasibility expenses, providing a tax incentive for businesses to invest and expand, so watch this space.

    For indirect taxes, the preparation of GST returns can be time consuming. When most businesses initially register for GST they ‘default’ to having a two-monthly filing frequency. However, for smaller businesses with annual sales below $500,000, taxpayers have the option to choose the six-monthly filing option instead.

    For taxpayers making payments of interest, for example a company paying interest to a shareholder, or to a related entity, Resident Withholding Tax (RWT) needs to be accounted for and paid to IRD. However, there is no withholding requirement where total interest payments for the year are less than $5,000. At the other end of the scale, RWT exemption certificates are available for taxpayers with gross income of more than $2m.

     

    To read further go to Biztax Alert Spring 2019