Category New Zealand Taxation
August 24, 2016 New Zealand Taxation
The IRD has won a case against a serial tax evader accused of dodging nearly NZD 800 000 in taxes.
Late last week Zai Jian Liang, proprietor of tasty Zone Restaurant in East Tamaki, was sentenced to 38 months of jail time for tax evasion amounting to NZD 787 996.
According to the Inland Revenue Department claimed that Zai Jian Liang and his wife Guan Hong Liang failed to declare more than NZD 1 million of cash sales through their restaurant.
Further, alongside failing to record cash sales, the couple also failed to pay approximately NZD 500 thousand worth of PAYE for staff salaries.
Following their gross tax evasion the family also claimed nearly NZD 30 thousand worth of Working for Families tax credits.
The evidence of the tax evasion was found by IRD investigators during raid of the co...Read More
August 9, 2016 New Zealand Taxation
Small business in New Zealand will soon have an easier time paying their Provisional Tax, if a new Bill is approved.
On Monday the Minister of Revenue Michael Woodhouse announced that new bill has been introduced to Parliament, detailing the earlier proposed updates to Provisional Tax payments.
The new bill details the new Accounting Income Method for calculation and payment of Provisional Tax by small and medium sized businesses.
Under the new system, small businesses using appropriate accounting software will be able to calculate their Provisional Tax obligations based on their realized incomes, instead of estimating their potential incomes for the year.
It is believed that the eased filing system will ease the administrative burdens for businesses, allowing owners to concentrate on o...Read More
July 4, 2016 New Zealand Taxation
The New Zealand Council for Infrastructure Development is calling for the cost of new housing developments to be passed to buyer, not developers.
In a press release on July 4th the New Zealand Council for Infrastructure Development (NZCID) called on the government to implement a plan for the payment and collection of funds from the newly announced $1 billion interest free housing infrastructure loan.
Over the weekend the government announced its new program which would grant loans to local councils to pay for infrastructure developments to new residential property areas.
The NZCID cautioned that if “development levies” were used to pay for the loans, land developers would end up facing higher risks, and, ultimately, passing on the risks in the form of higher prices to buyers.
June 28, 2016 New Zealand Taxation
New data shows that large wealth gaps exist between different age groups and ethnic groups in New Zealand.
On June 28th Statistics New Zealand released new data regarding the distribution of net wealth across different groups in the country.
It was shown that approximately 70 percent of total household net worth in New Zealand is held by the top 20 percent of households in the country.
The distribution of net worth was heavily dependant on age, with people aged 15-24 years old having a median net worth of NZD 1 000, while those aged over 65 years having a net worth of NZD 288 000.
There was also marked differences between ethnic groups, with Europeans having a median household net worth of NZD 114 000, while Maori, Pacific people, and Asian groups holding NZD 23 000, NZD 12 000, and NZD ...Read More