Latest News
Updates & Case Studies
Can you rely on Inland Revenue? 14 May, 2012
It is not always appreciated that taxpayers cannot always rely on advice given by Inland Revenue (more correctly, the Commissioner). This is because the Commissioner is bound by the same tax laws... Read More »
Credit repossession law review 07 May, 2012
The Law Commission has recommemed significant changes to New Zealand's credit repossession laws. Proposed changes include: the requirement to give explicit information to consumers entering... Read More »
Proposed GST amendments 23 April, 2012
Renue Minister Peter Dunne has announced the intention to introduce new measures to remove GST obstacles for non-resident business. GST is a tax on end user consumption that is designed to be... Read More »
Trust Fundamentals 16 April, 2012
Vicki Ammundsen, a partner at Ayres Legal, is presenting a webinar on Trust Fundamentals for NZICA on Wednesday 18th April. This webinar, which is the first of a series of 6 on trust related... Read More »
Use of Money Interest rates to fall 06 April, 2012
From 8 May 2012, the rate of interest charged by Inland Revenue on underpaid tax will fall from 8.89% to 8.40%. The rate of interest paid by Inland Revenue on overpaid tax will fall from 2.18% to... Read More »
Payroll giving information 12 March, 2012
Payroll giving allows employees to make charitable donations through their employer's payroll system. Donors who make donations through payroll giving receive an immediate PAYE credit of 33% of the... Read More »
Continuity of shareholdings 08 March, 2012
Draft interpretation statement on timing of share transfers, 05 March 2012 Recognising the point at which shares change hands can be very important for the purposes of the continuity provisions as a... Read More »
Tax Policy update 02 February, 2012
Inland Revenue's post-election briefing for the incoming Minister of Revenue has been released. This briefing provides an overview of current tax policy and administration as well as consideration of... Read More »
Trust Law Review 11 January, 2012
The fifth and final issues paper on the Review of the Law Trusts: "Court Jurisdiction, Trading Trusts and other issues: Review of the Law of Trusts" is now available to read and download at Law... Read More »
Anti-money laundering and countering financial terrorism 10 January, 2012
If you are in a business that involves dealing with money for or on behalf of your customers you may be a financial institution for the purposes of the Anti-money Laundering and Countering Financial... Read More »
Nuisance faxes 28 November, 2011
With effect from 21 October 2011 faxes are no longer excluded from the definition of "electronic messages". This means that unsolicitored faxes can now be treated as "spam".... Read More »
Shining some light on how to avoid trustee liability 23 November, 2011
We write regularly about trustee liability and the importance of appreciating the duties and obligations inherent in the role of trustee. What it is also to appreciate is that a trustee can remain... Read More »
What has the IRD been up to of late? 11 November, 2011
The past year has been a big one for tax policy in addressing certain unfairness in the tax base, recognising the need to respond to tax consequences of disasters and directing a tax base that will... Read More »
Look-through companies and interest deductibility 08 November, 2011
Inland Revenue released a Question We've Been Asked: "Income tax - look-through companies and interest deductibility" on 1 November 2011 This release confirms that, subject to legislated... Read More »
Limitation of liability clauses in the spotlight 27 October, 2011
It is common for a trustee's liability to be limited in the deed of trust. Such clauses are usually drafted along the lines of "No trustee shall be liable for any loss not attributable to his or her... Read More »
Cross border withholding tax issues 11 October, 2011
When interest is paid to an off-shore lender non-resident withholding tax (NRWT) or approved issuer levy (AIL) is usually payable in addition to the interest. AIL (if an option), which is payable at... Read More »
New book by Ayres Legal Partner Vicki Ammundsen 28 September, 2011
The second edition of Taxation of Trusts, written by Ayres Legal partner Vicki Ammundsen was published by CCH this month. Taxation of Trusts, an essential guide for trustees and trust... Read More »
When trustee liability becomes personal 12 September, 2011
Trustees generally act personally unless the trustee's liability is limited by contract. This means that simply entering into an agreement on behalf of a trust (without anything more) does not imply... Read More »
Corporate trustee update 07 September, 2011
The use of corporate trustees is now wide spread. While there are significant advantages for professional trustees and client trusts where the trustee acts through a dedicated trustee company, the... Read More »
Guidance on setting below market salaries 01 September, 2011
The use of companies, trusts and other business structures do not of themselves give rise to tax avoidance, even where tax savings result. However, as the use of such structures can provide the true... Read More »
The taxing question of when is a salary too low? 31 August, 2011
The recent Supreme Court decision in Penny and Hooper v CIR has confirmed that payment of a below market salary from an associated entity can be tax avoidance. However, the same decision also... Read More »
Abolition of gift duty enacted 30 August, 2011
The legislation abolishing gift duty has received Royal Assent and accordingly, gift duty will be abolished with effect 1 October 2011. Before making a diary note to gift all debts owing on that... Read More »
Child support changes proposed 22 August, 2011
The Government has announced its intention to change the way child support is calculated to reflect: the actual cost of raising children today; the degree of shared care between parents with the... Read More »
Gift duty bill passed 18 August, 2011
Late last night parliament passed the bill abolishing gift duty. This legislation, which will take effect once it receives Royal Assent, will abolish gift duty from 1 October 2011. Until then it is... Read More »
Gifts to charities - IRD alert 10 August, 2011
Charitable donations of $5.00 or more entitle the donor to tax credits. However, where a gift of property is made, no credit is available. The IRD is aware of arrangements where money is "gifted" to... Read More »
Taxpayer not required to pay tax on land acquired with an intention of resale 31 July, 2011
See http://www.ayreslegal.co.nz/articles/details/taxpayer-not-required-to-pay-tax.html... Read More »
Fourth Issues Paper - Review of the Law of Trusts 30 June, 2011
The Law Commission has released a fourth Issues Paper in the Review of the Law of Trusts, 'The Duties, Office and Powers of a Trustee.' This paper is available at... Read More »
Abolition of gift duty 28 June, 2011
The Finance and Expenditure Committee has reported back on the Taxation Bill that proposes, amongst other things to, abolish gift duty. In its report issued 20 June 2011 the Committee has recommended... Read More »
Trustee's Handbook ed 3 13 June, 2011
The Trustee's Handbook ed 3, written by Ayres Legal partner Vicki Ammundsen is now available at... Read More »
Budget 2011 22 May, 2011
Hear Vicki Ammundsen, together with other tax commentators discussing budget 2011 at: http://www.talktax.co.nz/index.php/2011/05/19/nzbudget-2011-three-perspectives/#more-1110 ... Read More »
Political activities disqualify Greenpeace from registration as a charitable entity 13 May, 2011
The Charities Commission decision that Greenpeace can not be registered as a charity because of its political activities has been up-held by the High Court. The High Court found that the Charities... Read More »
What a difference a day makes 10 May, 2011
The recent Supreme Court decision in the case of Ingram, Knee and Kip Investments Limited v Patcroft Properties Limited is a sage reminder of the importance of measuring twice and cutting once (to... Read More »
Going concerns still causing problems 04 May, 2011
The Tax Review Authority ("TRA") has determined that the sale of an owner/operator Mainfreight Metro business was not the supply of a going concern. Although the parties had agreed in the agreement... Read More »
GST Addendum 26 April, 2011
New GST zero-rating rules for certain land transactions between registered parties took effect on April 1. A GST Addendum to the REINZ standard Eighth Edition Agreement for Sale & Purchase... Read More »
No change to duty-free threshold 21 March, 2011
When GST increased to 15% on 1 October 2010, there was no automatic increase in the GST and duty-free threshold applied by Customs. Following a review of the duty-free threshold the New Zealand... Read More »
Look through companies 11 March, 2011
See the second article on our series on Look Through Companies on when to elect into the new regime under the heading "Articles".... Read More »
LTC eligibility rules 21 February, 2011
The new look through company (LTC) regime will apply from 1 April 2011. From this date existing loss attributing qualifying companies (LAQCs)will no longer be able to attribute losses. This means... Read More »
International tax misconceptions 08 February, 2011
As we become more globally mobile it is extremely important to appreciate and recognise that tax liabilities can arise in more than one tax jurisdiction. The following list of commonly misunderstood... Read More »
Variations of trust 01 February, 2011
Although discretionary trusts routinely last for up to 80 years, any trust period is possible. Subject to the nature of a trust's assets, or in some cases, the trust's beneficiaries, it can become... Read More »
Review of Trust Law 21 January, 2011
The Law Commission has issued the second in a series of issues papers regarding the law of trusts. This paper, which examinses the use of trusts (with a particular focus on family trusts) in New... Read More »
Abolition of gift duty 24 November, 2010
The legislation abolishing gift duty was introduced in the Taxation (Tax Administation and Remedial Matters) Bill was introduced on 23 November 2010. If the Bill is enacted in its present form gift... Read More »
Abolition of gift duty 02 November, 2010
The Minister of Revenue, the Hon Peter Dunne, announced on 1 November 2010 that the abolition of gift duty will be included in legislation to be introduced in November 2010. If the legislation is... Read More »
Qualifying company changes 14 October, 2010
The rules that apply to qualifying and loss attributing qualifying companies are changing. If you are a shareholder in a qualifying company or a loss attributing qualifying company now is a good... Read More »
Ayres Legal in the news regarding beneficiary rights 04 October, 2010
An identifiable beneficiary is a fundamental requirement of a valid trust. However, if is often not fully appreicated that a discretionary beneficiary does not have the right to know that that person... Read More »
Trust Webinars 30 August, 2010
Ayres Legal partner Vicki Ammundsen is presenting a series of 3 webinars on trust matters in September. The topics covered include: current trust matters variation of trusts trustee... Read More »
Transition to the 15% GST rate 10 August, 2010
The Government has announced proposed amendments to the Goods and Services Act 1985 that will assist with the transition to the new 15% rate, which will be effective 1 October 2010. The proposed... Read More »
Below market salary 07 June, 2010
The Court of Appeal decision in Penny and Hooper considers the circumstances where a below market salary can amount to tax avoidance. In this case the majority of the Court of Appeal found that... Read More »
GST and low value imports 01 June, 2010
GST is not charged by Customs on imported goods if the GST payable on any one importation is less than $50. This means that while GST is 12.5%, no GST is charged on goods with a taxable value of... Read More »
Budget 2010 20 May, 2010
The May budget has confirmed the expected personal tax cuts and GST rise. Other features of the budget include: a reduction in the company tax rate to 28% effective 1 April 2010; depreciation... Read More »
Leaky building help 18 May, 2010
The Government has announced a new financial assistance proposal aimed at getting faster help for the owners of leaky homes. The proposal would see the cost of repairs shared between homeowners, City... Read More »
Corporate trustee warning 21 April, 2010
The recent decision in Newmarket Trustees Limited v CIR is a timely reminder of the risks inherent in the appointment of an assetless corporate trustee. In this case the trustee, which had no assets... Read More »
Beneficiary Income 25 March, 2010
The definition of beneficiary income has changed, with effect from 1 April 2010. The amended definition provides that the period within which income earned by the trust in the previous year can be... Read More »
What were you thinking when you settled that trust? 28 February, 2010
Intention in the context of trusts is more usually seen in the context of the three certainties. However, the recent decision in Ward v Ward [2009] NZSC 125 regarding an application under s. 182 of... Read More »
Taxation of Trusts 22 January, 2010
"Taxation of Trusts", written by Ayres Legal partner Vicki Ammundsen is now available for purchase from www.cch.co.nz. "Taxation of Trusts" is an essential guide for any trustee. Providing... Read More »
Payroll-Giving: A Real-time Benefit For Charitable Giving 22 January, 2010
Payroll-giving came into effect on 7 January 2010. For further information see "Articles"... Read More »
Income splitting - is it for you? 14 December, 2009
The Government has released an issues paper proposing income splitting for couples with children under a tax credit mechanism. Contact a member of the Ayres Legal team if you would like a copy of the... Read More »
Amended definition of beneficiary income 09 December, 2009
The definition of beneficiary income in has been amended with application from the 2009-10 and later income years. The amended definition extends the 6-month period for trustees with a tax agent to... Read More »
Elder Law Conference 04 December, 2009
Vicki Ammundsen, presented a paper on capacity at the Elder Law Conference held in Christchurch on 26 November. You can e-mail vicki@ayreslegal.co.nz for a copy of that paper.... Read More »
Amendments to GST Act are under consideration 09 November, 2009
"GST: Accounting for land and other high-value assets - A government discussion document" released on 5 November 2009 proposes a number of changes to the Goods and Services Tax Act 1985. The... Read More »