Monthly Archives June 2009

R & D Tax Credit Called For

June 21, 2009 New Zealand Taxation  No comments

Several parties are actively calling for the Government to recall the recently scrapped Research & Development (R&D) tax credit.

Moana Mackey, the Labour Party’s Research and Development, Science and Technology spokesperson is voicing her support of the New Zealand Manufacturers and Exporters Association (NZMEA).

The Labour Party instated R&D tax credit used to allow companies participating in Research & Development receive a 15% tax credit on their Research and Development based activities.

Moana Mackey has stated that the lack of a Research & Development tax credit is actively hurting New Zealand’s tradable sector...

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R & D Tax Credit Called For

June 21, 2009 New Zealand Taxation  No comments

Several parties are actively calling for the Government to recall the recently scrapped Research & Development (R&D) tax credit.

Moana Mackey, the Labour Party’s Research and Development, Science and Technology spokesperson is voicing her support of the New Zealand Manufacturers and Exporters Association (NZMEA).

The Labour Party instated R&D tax credit used to allow companies participating in Research & Development receive a 15% tax credit on their Research and Development based activities.

Moana Mackey has stated that the lack of a Research & Development tax credit is actively hurting New Zealand’s tradable sector...

Read More

Jail Time for GST Fraudster

June 18, 2009 New Zealand Taxation  No comments

Tauranga based GST fraudster has been sentenced to 18 month jail time, after admitting to 58 charges of tax evasion.

Timothy Andrew Penniket, a Tauranga based man, was charged with obtaining wage records from a company run by his mother. He is then alleged to have used these records to register 14 of the mentioned employees for GST via the internet, directing any funds to his own bank account, or one used by his associate. In total, thirty two returns were submitted by Timothy Penniket.

The Inland Revenue Department (IRD) has so far recovered $16,127 from the bank account, a further $6,501 has been made in reparation by the associate. The court has also ordered $16,387 to be repaid, totaling the amount that has yet to be recovered by the IRD.

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IRD Issuing Deduction Notices

June 16, 2009 New Zealand Taxation  No comments

The Inland Revenue Department is issuing some deduction notices to client’s of businesses, according to Kerryn Downey of McGrath Nicol.

According to Kerryn Downey of McGrath Nicol, the Inland Revenue Department (IRD) has used deduction notices on at least two businesses in the last six month, in response to their un-payment of tax obligations. In effect, these notices order the receiving business to direct their payments to the IRD as opposed to the target supplier, in order to for the money to be used to pay for the supplier’s tax obligation. According to Kerryn Downey of McGrath Nicol, the issued deduction notice’s have since been withdrawn.

The IRD’s power to do this is nested in section 157 of the Tax Administration Act. Equivalent provisions exist for the collection of GST...

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