There are legitimate ways to manage tax exposure by using previously incurred tax losses. However, business owners should be wary of stories suggesting that tax losses can be bought.
New Zealand business leaders see major sporting events as an integral means of attracting investment to the country, according to new research from the Grant Thornton International Business Report (IBR).
Inland Revenue’s win at the Supreme Court in the Penny & Hooper case: The case involved two Christchurch orthopaedic surgeons who each transferred their practices to a company, the shares of which were owned by a family trust. Instead of earning all the surgery income in their own names, the company paid them a (lower) salary, and the rest of the income stayed in the company. The salaries were determined by reference to public hospital pay rates.
It is a “cop-out” to say that statutory audits cannot be further improved to help stave off crises and reduce fraud say Mark Hucklesby, National Technical Director of Grant Thornton New Zealand.
Growing signs of an economic turnaround are highlighted by the attitude of New Zealand businesses in the latest Grant Thornton International Business Report (IBR) for the second quarter of 2012.
The statutory managers of Hubbard Management Funds which is currently worth $44 million have received direction on how to allocate the fund to investors. This follows a High Court decision that determined a model for allocating repayments to investors.
The statutory managers of Aorangi Securities may now be unable to return almost 100 cents in the dollar to investors. In papers submitted to the High Court, Mrs Hubbard is disputing the beneficial ownership by Aorangi of $60 million of assets, say the statutory managers in their 11th Report just released.
Back in the 1980s, New Zealand had a company tax rate of 48%. At the end of that decade two things occurred. Firstly, the company tax rate was reduced to 33% - where it remained until just a few years ago. Secondly, a system of imputation was introduced.
Statutory managers, Grant Thornton New Zealand, have expressed their disappointment at the announcement by Mrs Jean Hubbard that she will oppose the transfer of assets to Aorangi investors.
Income tax is generally recognised as being one of the biggest expenses that a business faces. Not only is there the cost of the tax itself; there are also compliance costs associated with managing the myriad of responsibilities that taxpayers have.