a general rule, the Courts have taken the view that clothing and personal items
are of a private or domestic nature and therefore not deductible. But when
expenditure is incurred in the purchase of clothing which replaces or is
used to protect or maintain normal apparel, a deduction can be claimed, subject
to the usual conditions of tax deductability (i.e. necessarily incurred in the operation
of a business for the purpose of deriving income).
is therefore difficult to prove valid deductibility for sunhats. They are
normally worn by normal people as part of their normal summertime or outdoor
apparel. Building hardhats used on a construction site would of
course be deductible, as they are normal working attire (N.B. you
see people at the beach wearing sunhats , but you dont see too many hardhats)
may be difficult to prove valid deductibility for sunglasses. They are
also normally worn by normal people as part of their normal summertime or normal
apparel . Welding goggles would of course be fully deductible (N.B.
you see people at the beach wearing sunglasses, but you dont see too many
wearing welding goggles)
is a normal item of expenditure incrurred by normal people in their normal
sporting or leisure lives, so as per the court ruling would not be
deductible. But when it is supplied by an employer to employees ,
such as a gang of forestry or horticultural workers in an sunny environment to
avoid sunburn and assist in health of the employees it is certainly a tax
deductible item, as it a cost which is necessarily incurred in the operation of
the taxpayers's business and it cannot be categorised as of a private or
domestic nature because it is not used privately or personally by the employer.
MARCH 2003- PROVISIONAL TAX DUE DATE REMINDER
you have a standard balance date of 31 March, you are reminded that 7 March 2003
due date for payment of 2003 provisional tax, and
last opportunity to estimate (or re-estimate) your provisional tax for 2003.
INCOME THRESHOLDS FOR STUDENT LOANS
thresholds for student loan repayments and full interest write-offs will rise
fron April 2003:
income level at which borrowers must start to repay their student loans will
rise from $15,496 to $15,964, and
income level under which part-time or part-year borrowers may have interest on
their loans fully written off goes up from $25,378 to $25,909.
LOW COST WAYS TO PROMOTE YOUR NEW OR EXISTING BUSINESS
Here are 24 proven methods to
market your business at low cost:
If you dont have a business
card and business stationery, have them made up immediately-
your business card, letterhead and envelope tell prospective customers you
are a professional who takes your business seriously.
Get your business card into
a many hands as possible.
Talk to all the vendors from
whom you buy products or services- give them your business card, and ask
them if they can use your products or services, or if they know anyone who
Attend meetings of
professional groups and groups such as Chamber of Commerce, Rotary Club and
civic organisations- give your business cards to people you talk to
and ask them what they do and show an interest in them.
Become involved in some of
these groups- that will give you more opportunity to meet possible
Look for something unusual
about what you do, and publicize it- send out press releases to
local newspapers, radio stations or magazines whose audiences are likely to
be interested in buying what you sell
Write an article that
demonstrates your expertise in your field- send it to newspapers,
magazines etc- be sure that your name, business name, reference to your
product or service and phone number are included at the end of the article.
Whenever you do get
publicity, get permission from the publisher to reprint the article
containing the publicity- make photocopies and mail the copies out
with sales letters or any other literature you use to market your product or
Contact non profit
organisations, schools and othef businesses who have customers who may need
your services- ask for work or leads.
Network with others who are
doing the same type of work you are- let them know you are available to
handle their work overloads.
Offer to be a speaker on
subjects utilising your area of expertise- you'll benefit two
ways from such engagements, the fee you may receive for doing them, and the
publicity you, your product or service gets as a result.
If your product or service
is appropriate, give demonstrations of it to whatever groups or individuals
might be interested.
Find out what government
programmes are in existence to help you get started in business.
Send out sales letters to
everyone you think might be able to use what you sell- drop a business card
in every letter you send out.
If you use a car or truck in
your business have your business name and contact information professionally
painted on the side of the vehicle- that way your means of transportation
immediately becomes a vehicle for advertising your business.
Get on the telephone and
make cold calls to people who you would like to do business with- briefly
describe what you do and ask for an appointment to talk to them about ways
you can help them meet a need or solve a problem.
Get samples of your product
or your work into as many hands as possible.
Offer a free, no obligation
consultation to people you think could use your services.
Learn to ask existing
customers, prospects and casual acquaintances for referrals- when you get
them , follow up on the leads.
Use other people to sell
your product or service- instead of (or in addition to) selling your
products yourself, look for existing mail order companies that would be
willing to include your products in their catalogues, or distributors or
sales agents- be sure your pricing structure allows for the fees or
commissions you will have to pay on any sales that are made.
Have sales letters, flyers
and other pertinent information printed and ready to go- ask
prospects who seem reluctant to buy from you "Would you like me to send
information to you?" and follow this up.
Run a contest- make the
prize desirable and related to your business
Take advantage of any
opportunities you have to get free advertisements, or to have your company
and its product or sevice listed free in a directory.
If your target market would
be likely to use the internet , consider putting up a web page- if you
do make it online, be sure to include your email address and your web page
address on your business cards, in your promotional materials, in print ads
and on your letterhead.
YOU ARE AN INVESTOR- ARE YOU IN BUSINESS?
OB 1 of the Income Tax Act 1994
defines business to include “any profession, trade, manufacture, or
undertaking carried on for pecuniary profit”
a taxpayer is in the business of investing is dependent on that taxpayer’s
fact situation. The
leading “business” case in New Zealand is Grieve v CIR (1989).
In that case the judge set out the factors relevant to the inquiry as
to whether a taxpayer is in business:
determining whether income earned from investing should be declared in tax
return it will depend if the investor is:
nature of the taxpayer’s activities, and|
period over which the taxpayer engages in the activity, and|
scope of the taxpayer’s operations, and|
volume of transactions undertaken, and|
commitment of time, money and effort by the taxpayer, and|
pattern of activity, and|
financial results achieved by the activity.|
passive investor is a person whose primary aim is to derive dividend and
interest income from a secure investment portfolio.
There may be a secondary hope or possibility that the investments will
provide long-term capital appreciation.
A passive investor will make changes to the investment portfolio from
time to time to achieve this aim. Some
investors may also be actively involved in monitoring their investment
portfolios (or engage an investment advisor to do this for them) to ensure
that the primary aim of maximising dividend and interest yield is maintained.
The passive investor will not buy or sell investments for short term
gain. The passive investor is not
regarded to be in business as an investor.
person in the business of investing
A speculative investor is someone
who either acquires an investment with the intention of selling it, or carries
on or carries out an undertaking or scheme, involving the investment, entered
into or devised for the purpose of making a profit.
Investors are not speculative investors simply because they would like
to see their investment capital increase, or that they may sell their
investment if the capital increases.
Most passive investors fall within that description.
It is the person’s dominant purpose that is important in this
An investor may be a speculative investor in relation to one
investment, and not in relation to another.
Profits derived or losses incurred in speculative investment activity
are regarded as assessable income.
An investor who is fully in the business of investing should declare
profits derived or losses incurred in that activity as assessable under
Section CD 4 and deductible under Section BD 2 of the Income Tax Act 1994.