deduction notice tagged posts
October 2, 2012 New Zealand Taxation
Landlords and tenants of commercial property will soon enjoy new tax rules granting them more tax deductions for payments associated with lease agreements.
On September 27th the Minister of Revenue of New Zealand Peter Dunne unveiled details of the government’s proposed changes to the tax rules for lease inducement payments and lease surrender payments.
As of April 1st 2013, all lease inducement payments will be tax deductible for payers and regarded as taxable income for receivers.
Lease inducements are payments made by landlords to potential tenants in order to entice them to sign a lease agreement, and such payment shave become popular in recent years as a means to attract tenants during economic downturns.
Lease surrender payments made by tenants to leave a tenancy agreement early wil...Read More
June 16, 2009 New Zealand Taxation
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 According to Kerryn Downey of McGrath Nicol, the issued deduction notice’s have since been withdrawn.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...Read More