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Business valuations
We offer expert valuation advice in transactions, regulatory and administrative matters, and matters subject to dispute – valuing businesses, shares and intangible assets in a wide range of industries.
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Capital markets
You need corporate finance specialists experienced in international capital markets on your side if you’re buying or selling financial securities.
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Complex and international services
Our experience of multi-jurisdictional insolvencies coupled with our international reputation allows us to deliver the best possible outcome for all stakeholders.
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Corporate insolvency
Our corporate investigation and recovery teams can help you manage insolvency situations and facilitate the best outcome.
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Debt advisory
An optimal funding structure for your organisation presents unprecedented opportunities, but achieving this can be difficult without a trusted advisor.
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Expert witness
Our expert witnesses analyse, interpret, summarise and present complex financial and business-related issues which are understandable and properly supported.
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Financial models
A sound financial model will help you understand the impact of your decisions before you make them. Talk to us about our user-friendly models.
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Forensic and investigation services
We provide investigative accounting and litigation support services for commercial, matrimonial, criminal, business valuation and insurance disputes.
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Independent business review
Is your business viable? Will it remain viable in the future? A thorough independent business review can help your organisation answer these fundamental questions.
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IT forensics
Effective ESI analysis is integral to the success of your business. Our IT forensics experts have the technical expertise to identify, preserve and interrogate electronic data.
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Mergers and acquisitions
Grant Thornton provides strategic and execution support for mergers, acquisitions, sales and fundraising.
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Raising finance
Raising finance - funders value partners who can deliver a robust financial model, a sound business strategy and rigorous planning. We can guide you through the challenges that these transactions can pose and help you build a foundation for long term success once the deal is done.
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Relationship property services
Grant Thornton offers high quality independent advice on the many financial issues associated with relationship property from considering an individual financial issue to all aspects of a complex settlement.
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Restructuring and turnaround
Grant Thornton’s restructuring and turnaround service capabilities include cash flow, liquidity management and forecasting; crisis and interim management; financial advisory services to companies and parties in transition and distress
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Transaction advisory
Our depth of market knowledge will steer you through the transaction process. Grant Thornton’s dynamic teams offer range of financial, commercial and operational expertise.
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Corporate tax
Grant Thornton can identify tax issues, risks and opportunities in your organisation and implement strategies to improve your bottom line.
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Employment tax
Grant Thornton’s advisers can help you with PAYE (payroll tax), Kiwisaver, fringe benefits tax (FBT), student loans, global mobility services, international tax
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Global mobility services
Our team can help expatriates and their employers deal with tax and employment matters both in New Zealand and overseas. With the correct planning advice, employee allowances and benefits may be structured to avoid double taxation and achieve tax savings.
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GST
GST has the potential to become a minefield and can be expensive when it goes wrong. Our technical knowledge can help you minimise the negative impact of GST
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International tax
International tax rules are undergoing their biggest change in a generation. Tax authorities around the world are increasingly vigilant, especially when it comes to global operations.
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Research and Development
R&D tax incentives are often underused and misunderstood – is your business maximising opportunities for making claims?
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Tax compliance
Our advisers help clients manage the critical issue of compliance across accountancy regulations, corporation law and tax. We also offer business and wealth advisory services, which means we can provide a seamless and tax-effective offering to our clients.
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Transfer pricing
Tax authorities are demanding transparency in international arrangements. We businesses comply with regulations and use transfer pricing as a strategic planning tool.
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Audit methodology
Our five step audit methodology offers a high quality service wherever you are in the world and includes planning, risk assessment, testing internal controls, substantive testing, and concluding and reporting
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Audit technology
We apply our audit methodology with an integrated set of software tools known as the Voyager suite. Our technology has been developed to produce quality audits that are effective and efficient.
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Financial reporting advisory
Our financial reporting advisers have the expertise to help you deal with the constantly evolving regulatory environment.
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Business architecture
Our business architects help businesses with disruptive conditions, business expansion and competitive challenges; the deployment of your strategy is critical to success.
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Cloud services
Our team is led by cloud business experts who tailor services to the needs of your organisation, from strategy and implementation to ongoing services assurance.
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Internal audit
Our internal audits deliver independent assurance over key controls within your riskiest processes, proving what works and what doesn’t and recommending improvements.
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IT advisory
Our hands on product experience, extensive functional knowledge and industry insights help clients solve complex IT and technology issues
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IT privacy and security
IT privacy and security should support your business strategy. Our pragmatic approach focuses on reducing cyber security risks specific to your organisation
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Organisational & cultural change
The key to sustainable and future growth is a unified organisation operating within a strong cultural context, where transparency and communication are the priority for Kaimahi, and where visible leadership means walking the talk – but where does that journey begin?
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Payroll assurance
Our specialist payroll assurance team can conduct a review of your payroll system configuration and processes, and then help you and your team to implement any necessary recalculations.
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PCI DSS
Our information security specialists are approved Qualified Security Assessors (QSAs) that have been qualified by the PCI Security Standards Council to independently assess merchants and service providers.
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Process improvement
As your organisation grows in size and complexity, processes that were once enabling often become cumbersome and inefficient. To maintain growth, your business must remain flexible, agile and profitable
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Procurement/supply chain
Procurement and supply chain inputs will often dominate your balance sheet and constantly evolve for organisations to remain competitive and meet changing customer requirements
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Project assurance
Major programmes and projects expose you to significant financial and reputational risk throughout their life cycle. Don’t let these risks become a reality.
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Risk management
We understand that growing companies need to establish robust internal controls, and use information technology to effectively mitigate risk.
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Robotic process automation (RPA)
RPA is emerging as the most sophisticated form of automation used to help businesses become more agile and remain competitive in the face of today’s ongoing digital disruption.
Other people’s money
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.
Employers have a particularly heavy burden. Calculating wages and leave entitlements can be difficult enough. But since the introduction of PAYE in 1958, additional taxes have been progressively added to the system including child support deductions, student loan repayments, deduction notices for repayment of tax arrears, KiwiSaver contributions (employer and employee), superannuation taxes, and payroll giving (donation) deductions. While most employers may have these overwhelming calculations handled by a computer, they remain daunting.
What most of these taxes have in common is that they are not the employer’s money. The deductions are made from the salaries and wages of employees and are dealt with by the employer on their behalf. While PAYE is undoubtedly a significant cash outflow for a business, it is part of employee wages and held on trust for those employees until paid to Inland Revenue – on either a monthly or twice-monthly basis.
It is that element of “trust” that makes PAYE a different tax than, say, the employer’s income tax charge on their own profits. It is somebody else’s money. As Inland Revenue puts it: “The money deducted doesn’t, at any stage, belong to employers. Under no circumstances should the deductions be used for any other purpose than for payment to us. We’ll…take action against employers who don’t comply with the tax laws.”
However, it can also be a tempting source of funding for a struggling business. Imagine the scene: deductions have been made from wages, with the net amount paid to employees. The overdraft is approaching its limit and the bank has indicated they’re not prepared to extend. Solution: hold off paying the PAYE to IRD.
A word to the wise: Don’t. The maximum penalties are a fine of up to $50,000 or five years in prison, or both1. A collection of current court decisions illustrate the seriousness with which Inland Revenue views these cases.
For example, in one case2, a taxpayer was sentenced to seven months home detention and 400 hours of community service for failing to account for over $114,000 of PAYE deductions. In this case the sentence was less than it could have been because the offending was obvious from the start, as the taxpayer had made the deductions and filed the appropriate returns - they simply didn’t pay the money to Inland Revenue.
There are further penalties that may apply, up to 150% of the tax shortfall. That means still having to pay the original tax, with that amount and half again payable on top as a penalty. Interest charges will also apply.
The nature of GST is similar to PAYE. GST is charged by registered persons on the supplies they make. It is collected from customers and held until paid to Inland Revenue with the filing of a GST return. Significant penalties also apply to a failure to pay GST.
If a business is in the position of being unable to make PAYE or GST payments, it is a sure sign that there is something seriously wrong. Rather than succumbing to the temptation to hold on to other people’s tax money, seek professional advice about improving the business or making appropriate arrangements with Inland Revenue.
1Tax Administration Act 1994, section 143B(4) 2Commissioner of Inland Revenue & Robb NZ 31/5/12 DC Taupo CRI-2011-069-001773
Further enquiries, please contact:
Geordie Hooft
Partner, Tax
Grant Thornton New Zealand Ltd
T +64 (0)3 379 9580
E geordie.hooft@nz.gt.com