BDO Know How, February 2015

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:

• The year end is high
  With the end of the financial year fast approaching for many businesses with a 31 March balance date, there are a number of steps you may consider taking prior to balance date to minimise your final tax bill. Here are a few areas which every business owner should look into...
   
• Can KiwiSaver be used to pay off your overdue taxes?
  If you are part of the KiwiSaver scheme you’re probably aware that your savings can be withdrawn on the basis of financial hardship. But can you use your KiwiSaver to pay your overdue tax bill? The answer is “perhaps”, although the withdrawal process is onerous, and genuine hardship must be proven...
   
• The importance of being charitable
  A recent High Court case involving the National Council of Women will have wide implications for the charitable sector, and has raised concerns about the interpretation of the Charities Act and how it is being applied within the sector...
   
• A separate legal entity - Not always enough!
  A recent Court case found the parent company responsible for the debt of its subsidiary. Some of you will have set up a group structure for many business reasons, including the protection of other group company assets, should something go awry. The lesson is to maintain the independence of the subsidiary from its parent...
   
• Income Protection Insurance - tax deductable or not?
  Protecting your income by taking out an Income Protection policy is an important decision for many Kiwis to make. The threat of illness, disability or injury (which may not be covered by ACC) preventing you from working can have significant financial consequences. There are a variety of policies available, however they are not all the same when it comes to claiming a tax deduction...
   
• FUTRLI client offer
  From the middle of March this year, we are excited to be able to offer BDO Xero clients a six month free trial of a brand new cloudbased business dashboard called CrunchBoards. BDO CrunchBoards is unlike any business reporting tool you’ve ever seen. It gives you freedom to explore and focus on the key drivers in your business, using real-time information...