BDO Know How, December 2014

BDO Know How is our bi-monthly business newsletter providing updates on key business and tax issues which you need to know to best optimise your business.

We explore:

• GST offsets
  Hiding away in the Tax Administration Act is a handy little section, 173M. It is a relatively obscure and largely unknown provision that allows someone with a tax liability to offset that liability with someone who has tax refundable. We’ve mainly seen it used in transactions involving GST. Used primarily with larger transactions, (plant, equipment, boats etc) applying the section saves the vendor having to cash flow the GST on sale, and alleviates the purchaser having to justify their refund to Inland Revenue and wait, sometimes weeks, to have it released..
   
• Provisional tax doesn't have to ruin your holiday
  Here at BDO we work hard with you to try to minimise your compliance costs associated with the provisional tax system. Despite our combined best efforts, the system makes it difficult to estimate provisional tax perfectly every time. Whether you’ve overpaid or underpaid your provisional tax, it costs you money. Thankfully, Inland Revenue’s Tax Pooling system allows you to significantly reduce the interest and eliminate the penalties associated with the unders and overs that can occur.
   
• Employers take note, public holidays ahead
  As the number of days until the Christmas holidays decrease, it’s timely for employers to ensure that they are familiar with the rules around public holidays for their employees....
   
• Equity crowdfunding updates
  The Financial Markets Authority have issued a licence to Crowdarm Limited, trading as Crowdcube, to provide crowd funding services. This brings the number of licensed Equity Crowdfunders to 3....
   
• Health and Safety legislation
  The Health and Safety Reform Bill has been introduced to Parliament, representing a major change to New Zealand’s workplace health and safety system. It is likely that the Bill will come into force in the second half of 2015. All organisations will be interpreting and approaching the legislation differently. Given the broad nature of the legislation, flexibility will be needed by organisations so that implementation is tailored to suit each business. Though WorkSafe New Zealand (“WSNZ”) have provided guidance in some areas, where guidelines do not exist, the level of interpretation and the potential for differing practical applications is greater.