Mortgage cashback payments are prevalent in New Zealand, particularly when borrowers refinance or transfer their loans to another bank. Many homeowners perceive cashback as merely a bank incentive without tax implications. However, the latest draft guidance from Inland Revenue, under PUB00504, suggests the matter may be more intricate, especially if the loan is associated with a rental property or another income-generating purpose. Is Mortgage Cashback Taxable When Received?

Getting ready for IRD tax audit is unlikely to be one of your favourite things to do as a business owner. But being prepared, organised and ready can take some of the pain out of an audit. Let's take a look at five key ways to be ready for an audit. Gather all the relevant documentation – this documentation will include financial statements, bank statements, expenses, management information and any other documentation that your auditor is likely to ask you for. Organise y

People who are buying and selling properties for profit are being warned they could get a tax bill, even if they hold the house for longer than two years - and even if they have lived in it themselves. The bright-line test has now been reduced to two years, which means that investors who hold a property for at least that long are not automatically handed a tax bill for any gains they make on the property. Inland Revenue recently released a tool that would help people to u

Selling up and exiting the business is a major chapter in your business journey. But if you’re going to get the maximum return on investment (ROI), it’s vital to have an exit plan and to think seriously about how you add value to the business in the run-up to selling. Forward planning prior to a sale is crucial. It’s generally accepted that a five-year exit plan is needed before you even think about putting the company on the market. Having this five-year plan gives you

Founding, building and growing your own small business is a hugely rewarding experience for many entrepreneurs. But the road ahead isn't...

Being a business owner can be immensely rewarding. But it's also a highly pressurised and stressful vocation to choose. The business...

Purchasing an existing company is a great way to expand your business empire. You can buy out a close competitor, or dip a toe into a new...

No more piles of receipts and invoices required! Dealing with GST invoices is now much simpler. Inland Revenue’s new rules, from 1 April,...

As a business owner, which expenses are tax deductible and which are not? We help answer some of your questions. Is the cost of my work...

It’s a well-worn phrase, but cashflow really is the lifeblood of your business. When your cash inflows are greater than your cash...

As the holiday season approaches, take some time to think about how you want to organise your business operations over the summer. A bit...

Producing regular management information is one way to help improve your business decision-making. But looking at historical numbers can...

The OECD recently released its latest Taxing Wages 2022 report, and it’s interesting to see where New Zealand falls compared to other...

We get a lot of questions about what you can claim as a business expense, and clothing is one of the confusing topics when you’re self-employed. Most jobs have some sort of dress code – whether you wear suits and heels or overalls and steel-toed boots. Work clothes can be a significant expense for any business owner or employee. You only buy these clothes for your job, so it feels as though they should be business expenses, right? Well, not quite. What types of clothing can

Being self-employed can be tough – but it does have its advantages. One of those advantages is the possibility of being able to allocate...

You may be eligible for the Cost of Living payment – even if it hasn’t arrived in your account. If you earned less than $70,000 between 1...

The latest inflation data gave the Reserve Bank (RBNZ) and economists a bit of a shock. At 7.2%, it was much higher than anyone had...

Generally speaking, an exit strategy will be put in place years before your planned exit date. This gives you time to work on your sale...

No more piles of receipts and invoices required! Dealing with GST invoices will be much simpler under Inland Revenue’s new rules, which...