Monthly Archives November 2010
November 27, 2010 New Zealand Taxation
The Inland Revenue Department has revealed that a Hamilton man has been sentenced for GST fraud that was committed through the use of a new identity.
On November 24th Andrew Skipper Kendell was sentenced to two years and ten months jail-time for four charges of GST fraud. The defendant was alleged to have used an invalid identity to obtain NZD 153 000 in GST refunds.
According to the Inland Revenue Department (IRD) Andrew Skipper Kendell was originally named Andrew John Munsor Caddy. He legally changed his name following two bankruptcies and a tax fraud investigation by the IRD. In 2006 Andrew Skipper Kendell registered eight companies using his old name and filed 41 GST returns.
An IRD audit into the accounts of the eight companies revealed no discernible incomes or evidence of the validi...Read More
November 25, 2010 New Zealand Taxation
The rate at which the Inland Revenue Department charges tax mis-payments is set to change, with the underpayment rate decreasing and the overpayment rate increasing.
On November 23rd the New Zealand Revenue Minister Peter Dunne announced that the use-of-money rate that is charged by the Inland Revenue Department for over-paid and under-paid taxes will soon be altered. As of January 16th 2011 the use-of-money rate on unpaid taxes will be 8.89 percent, and the rate on overpayments will be 2.18 percent. The rates will rise from the current 8.91 percent on underpayments, and 1.82 percent on overpayments.
The use-of-money rates are reviewed regularly by the Inland Revenue Department and altered to reflect contemporary market interest rates...Read More
November 22, 2010 New Zealand Taxation
The New Zealand Revenue Minister Peter Dunne is being lobbied by the Retailers Association, in an effort to extend current Goods and Service Tax laws to international online purchases.
As the Government carries out a review on its laws regarding levying Goods and Service Tax (GST) on overseas retailers, the Retailers Association has weighed in on the matter, calling for the tax to be charged on all overseas purchases. Retailers Association chief executive John Albertson claims that the laws need to be expanded to protect New Zealand retailers from “unfair competition” from large international websites. He went on to say that while he does not know how much money is spent with overseas retailers, he believes the amount would be “significant”.
Under current regulations, GST is not le...Read More
November 19, 2010 New Zealand Finance
New Zealand’s economic recovery is now being described as “very slow” by Reserve Bank Governor Alan Bollard, although he remains optimistic for the country’s medium-term prospects.
The economic recovery of New Zealand could take longer than initially expected, with the Reserve Bank Governor Alan Bollard saying that it will be a “prolonged process”. The Governor explained the country’s economic situation at a Deloitte tax conference on November 19th, saying “we learnt that recovery to economic normality can be a slow, fragile and uncertain process, with temporary set-backs and aftershocks.”
The latest growth projection is based on the economic performances of the country’s major trading partners...Read More