New Zealand Tax Calendar 2012 – 2013

Posted 29 days ago by Editor

April

1

  • 2012 -2013 Financial Year begins

10

  • 2011 Fringe Benefit Tax return due for companies with a March balance date
  • Terminal income tax for 2011 is due for entities with a March balance date who have been signed to a Tax Agent

20

  • Employer deduction filing and payment due

May

7

  • GST return due
  • Payment of GST due
  • Provisional tax payment installment due for entities with a balance date in March

21

  • Employer deduction filing and payment due

28

  • GST return due
  • Payment of GST due

31

  • Annual and quarterly return of Fringe Benefit Tax due
  • Annual and quarterly payment of Fringe Benefit Tax due

June

20

  • Employer deduction filing and payment due

28

  • GST return due
  • Payment of GST due

July

9

  • Tax returns due for entities with a March balance date, which have not been granted an extension of time and do not have a Tax Agent

20

  • Employer deduction filing and payment due
  • Quarterly payment of Fringe Benefit Tax due

30

  • GST return due
  • Payment of GST due

August

20

  • Employer deduction filing and payment due

28

  • GST return due
  • Payment of GST due
  • Provisional tax payment installment due for entities with a balance date in March

September

20

  • Employer deduction filing and payment due

28

  • GST return due
  • Payment of GST due

October

23

  • Employer deduction filing and payment due
  • Quarterly payment of Fringe Benefit Tax due

29

  • GST return due
  • Payment of GST due

November

20

  • Employer deduction filing and payment due

28

  • GST return due
  • Payment of GST due

December

20

  • Employer deduction filing and payment due

January

15

  • GST return due
  • Payment of GST due
  • Provisional tax payment installment due for entities with a balance date in March

21

  • Employer deduction filing and payment due
  • Quarterly payment of Fringe Benefit Tax due

28

  • GST return due
    Payment of GST due

February

7

  • 2012 Income Tax die for entities with a March balance date, who do not have a Tax Agent
  • Provisional Tax installment due for entities with a March balance date

20

  • Employer deduction filing and payment due

28

  • GST return due
  • Payment of GST due

March

20

  • Employer deduction filing and payment due

28

  • GST return due
  • Payment of GST due

31

  • 2012 Tax return due for clients with a March balance date, who do have a Tax Agent

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Interest calculation error for some New Zealand nonresident companies

Posted 32 days ago by Editor

Because of the New Zealand Inland Revenue Department system miscalculation, all non-resident contractor companies, non-resident  entertainer companies and agents for foreign  insurers with balance dates between October and  February will have incorrect use-of-money interest  (UOMI) calculations.

End-of-year tax for a company that doesn’t have  a fixed establishment in New Zealand and isn’t  considered to be resident in New Zealand is due and  payable on:

  • 7 February in the next income year, or
  • 7 April if the company is linked to a tax agent.

If you’re affected, please contact us and we will arrange a correction.

According to IRD, the correction  will take  ”several weeks”.

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History of Gift Duties in New Zealand

Posted 35 days ago by Editor

Gift duty was originally instated in 1885 as a method of discouraging taxpayers from making excessive gifts of property as a method of avoiding estate duties. On October 1st 2011 gift duties were abolished from the New Zealand tax system, following a government review which found that the tax was an antiquated measure that the system no longer served its originally intended purpose.

Gift duties were paid by any individual who makes gifts valued at over NZD 27 000 in any 12 month period. Individuals who made gifts in excess of NZD 12 000 were required to file the Gift statement with the IRD within 3 months of the gifting exceeding NZD 12 000.

Gift duties were levied at a rate of:

  • 5 percent on all gifting with a cumulative value between NZD 27 001 and NZD 36 000
  • 10 percent (plus a payment of NZD 450) on all gifting with a cumulative value between NZD 36 001 and NZD 54 000
  • 20 perent (plus a payment of NZD 2 250) on all gifting with a cumulative value between NZD 54 001 and NZD 72 000
  • 20 percent (plus a payment of NZD 5 850) on all gifting with a cumulative exceeding NZD 72 000

Following a series of reviews, the government found that this type of tax was no longer effective at fulfilling its original purposes of preventing tax evasion or raising significant tax revenues, and calls were raised for the system to be dropped entirely.

The government’s assessment of the gift duty system showed that:

  • The compliance cost for gift duties was very high, with taxpayers spending nearly NZD 70 million per year to meet their obligations and filing requirements.
  • The tax raised comparatively little revenue, only leading to a collection of NZD 1 million per year.
  • The protection from tax evasion offered by the tax has been incidental.
  • The Income Tax Act 2007 already implemented several provisions designed to ensure the integrity of arrangements involving gifting.

The government confirmed its intention to abolish gift duties in November 2010. The legislation that would remove gift duties was passed through Parliament on 17th August 2011 and received Royal Assent on the 30th of August 2011.

Despite gift duties no longer applying for gifts, all taxpayers are still required to maintain all records when executing any transaction involving gifting.

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2012 INCSR: Major Money Laundering Countries

Posted 67 days ago by Editor

According to US State Department, every year, U.S. officials from agencies with anti-money laundering responsibilities meet to assess the money laundering situations in 200 jurisdictions. The review includes an assessment of the significance of financial transactions in the country’s financial institutions involving proceeds of serious crime, steps taken or not taken to address financial crime and money laundering, each jurisdiction’s vulnerability to money laundering, the conformance of its laws and policies to international standards, the effectiveness with which the government has acted, and the government’s political will to take needed actions.

The 2012 INCSR identifies money laundering priority jurisdictions and countries using a classification system that consists of three different categories: Jurisdictions of Primary Concern, Jurisdictions of Concern, and Other Jurisdictions Monitored.

“Jurisdictions of Primary Concern” are those that are identified, pursuant to INCSR reporting requirements, as “major money laundering countries.” A major money laundering country is defined by statute as one “whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking.”

Countries/Jurisdictions of Primary Concern (2012 INSCR):

Afghanistan, Antigua and Barbuda, Argentina, Australia, Austria, Bahamas, Belize, Bolivia, Brazil, British Virgin Islands, Burma, Cambodia, Canada, Cayman Islands, China, People’s Republic of, Colombia, Costa Rica, Curacao, Cyprus, Dominican Republic, France, Germany, Greece, Guatemala, Guernsey, Guinea-Bissau, Haiti, Hong Kong, India, Indonesia, Iran, Iraq, Isle of Man, Israel, Italy, Japan, Jersey, Kenya, Latvia, Lebanon, Liechtenstein, Luxembourg, Macau, Mexico, Netherlands, Nigeria, Pakistan, Panama, Paraguay, Philippines, Russia, Singapore, Somalia, Spain, St. Maarten, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, Uruguay, Venezuela, Zimbabwe

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Minimum wage in New Zealand increased to NZ$13.50

Posted 99 days ago by Editor

The Government of New Zealand will increase the minimum wage from NZ$13 to NZ$13.50 an hour, and the minimum wages for training and new entrants will increase from NZ$10.40 to NZ$10.80 (or 80% of the adult minimum wage in New Zealand).

“Those working full time on the minimum wage will earn an extra $20 a week or more than $1000 a year,” Minister of Labour Kate Wilkinson announced 8th of January 2012. She added that “The Government is focused on growing the economy, creating jobs and boosting incomes for all New Zealanders.”

The changes will come into effect on April 1, 2012.

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