This month’s newsletter provides important updates on recent regulatory changes.
The Taxation Bill introduced in August 2024 includes significant measures such as the Crypto-Asset Reporting Framework, set to take effect in 2026, and the new "Scheme Pays" option for foreign superannuation transfers, designed to ease compliance and improve tax management.
Additionally, the Companies Act 1993 is undergoing a review to modernise corporate governance and simplify insolvency procedures. Inland Revenue has also enhanced its property tax decision tool, now incorporating the Bright-line Test to assist property owners in determining their tax obligations.
Please also note Xero’s pricing changes, effective 12 September. Finally, a reminder to submit your 2024 annual accounts using our online checklist to ensure timely filing.
Meet Our Team Members
Lyn became a part of DC&A last year, bringing with her an extensive background in accounting and over 13 years of experience as a tax agent in New Zealand. As a Senior Accountant, her responsibilities include preparing GST, payroll, and end-of-year accounts for our clients. Outside of work, Lyn enjoys outdoor activities. She is an indispensable member of our team.
To get in touch with Lyn, email her at:
Ashiv, our Senior Accountant, became a part of DC&A last year, bringing over 25 years of extensive experience in the accounting field. He is dedicated to problem-solving and assisting individuals with their accounting challenges. His responsibilities encompass preparing GST, annual accounts, client consultations, and addressing IRD matters. Ashiv takes pleasure in
community engagement, enjoys walks, and values time with his family and friends.
Reach out to Ashiv via email: ashiv@denniscurin.co.nz
Summary of Recent Updates
New Tax Legislation
The Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Measures Bill), introduced in August 2024, aims to reduce compliance burdens while providing flexibility for Inland Revenue in emergency situations. A key feature is the incorporation of the Crypto-Asset Reporting Framework (CARF), which will require New Zealand-based crypto-asset service providers to report transactions from 1 April 2026. This reporting framework aligns New Zealand with global tax reporting standards and is expected to generate around $50 million annually.
Additionally, the bill introduces the "Scheme Pays" option for foreign superannuation transfers starting from April 2026. This allows pension schemes to pay taxes on behalf of individuals transferring funds to New Zealand, simplifying the process and preventing large tax liabilities for UK migrants. For employers, these changes also come with updates to Fringe Benefit Tax (FBT) calculations and other tax adjustments. Public submissions on the bill remain open until 9 October 2024, giving stakeholders an opportunity to share feedback on these measures.
Companies Act Review
The Companies Act 1993 is undergoing a significant review to modernise corporate governance rules. The focus is on improving digitisation and simplifying insolvency procedures. These changes aim to make corporate compliance more efficient and better suited to modern business practices.
Property Tax Tool Update
Inland Revenue has upgraded its property tax decision tool to assist property owners in determining if their property sale is taxable under land tax rules. This tool now includes the bright-line test and other land-related tax requirements, making it easier to assess tax obligations related to property sales.
For more details on the Bright-line Test and property selling, you can refer to our monthly blog. A link to the article is provided below.
Important Notices
Xero clients please note
Xero have advised us that from 12 September 2024 they will be implementing pricing and plan changes. You may be impacted by these changes.
If we hold a Partner Plan subscription on your behalf, we will send specific information specific about your plan during August. In the meantime, please don't hesitate to contact us if you have any questions.
If you hold a Xero subscription directly and you can see the details here:
Your 2024 Annual Accounts
A friendly reminder: If you haven't already, please provide us with your 2024 accounting information so we can complete your accounts. To make this process simple and easy, we have created an online checklist for you to fill out.
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Important Upcoming Dates:
21st October
FBT Quarterly Due
28th October
GST 6 Month (April/September GST Return & Payment Due)
Provisional Tax AIM & Ratio method
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