Author: chasgunaratne

National’s Tax Plan Highlights

On 30th August 2023 National announced its tax plan ahead of the upcoming election labelled “Back Pocket Boost – Tax Relief for the Squeezed Middle”. As in the name, the focus is on middle New Zealanders, aiming at putting cash back in their pockets. The plan is to provide $14.6b income tax relief over the […]

Navigating path to success

In the complex and ever-changing landscape and nature of business, strategic planning stands as a beacon of direction and purpose for enterprises. Strategy is the art and science of envisioning a desired future and charting a course to reach it, guiding organisations toward sustainable viability and success. But what makes strategic planning truly valuable fascinating […]

Methods for Calculating Provisional Tax

Standard Method Instalments are calculated at 105% uplift of previous year’s residual income tax; or 110% of the year before residual income tax (if previous year income tax return is not filed). Pros Use of money interest is calculated on lowest cost option based on the tax instalment paid per standard uplift or in equal […]

Tax and Trusts

Whether you are a businessperson signing contracts and leases in the ordinary course of business, a property investor signing finance agreements with banks, a property trader, or a developer, you will no doubt want to pay as little tax as legally required and protect the assets you’ve worked so hard to attain. So how do […]

Legislation Changes

The government have made changes to two areas of legislation that affect property investors: tax (interest deduction and bright-line), and the Resource Management Act.   Tax Changes In October the government finally introduced legislation into parliament setting out the proposed interest deduction rules. Here is a summary of the highlights. a) We still do not have […]

Tax Changes Update

The Government’s release of draft legislation this week was disappointing on a number of fronts. First, what was expected to be complex legislation has been successfully made nearly indecipherable. Second, it is of course disappointing that they are pressing ahead with the rules being effective from 1 October despite only this draft version being available […]

Fixing Our Housing Problem

The government need to treat investors and developers as the solution, not the problem. Supply is the long-term solution – and it comes from developers and investors. You need both. The investors buy the assets from the developers. If the government continue to make it too hard and annoy property owners (the “landed gentry”) with […]

Interest Deductibility — NZ Government — Update

On 10 June 2021, the Labour Government opened up a five-week consultation period on the new interest deductibility rules. They have released a Design of the interest limitation rule and additional bright-line rules discussion document which is lengthy and quite detailed, and reveals some interesting thinking, some of which I think is surprisingly taxpayer friendly. On first look […]