McLEAN AND CO. Chartered Accountants

Accounting                               Taxation                                   Business Advice and Development Assistance                                        

 P.O. Box 10 , Clive         133 Main Rd, Clive           Tel. (06) 8700952          Fax. (06) 8700955 

Email murray@mcleanandco.co.nz                                  Website www.mcleanandco.co.nz

 
EMAIL NEWSLETTER  JULY 2012
 

Welcome again to the McLean and Co. Newsletter in which we discuss current taxation and business matters. We trust you find it informative.  

 

NEW CLIENTS

We are happy to accept new clients.  We would be happy to assist colleagues and acquaintances as new clients.

 

INDEX

  1. KiwiSaver turns Five

  2. Should you Register for GST?

  3. Act Now if you are getting into Debt with IRD

 

KIWISAVER TURNS FIVE

On 1 July 2007 KiwiSaver was born and since then nearly two million New Zealanders have enrolled (or almost half the eligible population). On 1 July 2012 KiwiSaver turned five and with that anniversary comes the ability for some savers to access their funds should they wish to.

From 1 July KiwiSaver members who qualify for NZ Super (currently aged 65 or over), or who joined KiwiSaver between ages 60 and 65, and have been in KiwiSaver for five years will be eligible to withdraw their savings.

How do they withdraw their Savings?

To do so, they need to contact their KiwiSaver scheme provider.  Their scheme provider will confirm whether they are eligible to withdraw their savings, and will then tell them how to go about it.  They will also be able to tell them the options available if your member wants to continue with their investment

How much will their Savings be worth?

KiwiSaver scheme providers will have provided annual account statements at the end of each financial year and this is a good place to find out how much they have in their account.  Their KiwiSaver scheme provider will also be able to give them an updated account balance to let them know how their investment is doing.

What if they've lost track of their Provider?

If the member  has lost track of who their KiwiSaver provider is, they can ring IRD and ask which KiwiSaver scheme they currently have, who their provider is, and how to contact them.

What is your Obligation as an Employer?

From 1 July 2012 employers are no longer liable/required to pay compulsory employer contributions for those employees who are eligible to withdraw their savings. Employers can continue to pay employer contributions on a voluntary basis if they wish, or as a requirement under an employment agreement.  IRD will be contacting employers about this and if members  have questions they should call IRD.

 

SHOULD YOU REGISTER FOR GST?

Non registered GST taxpayers should be aware of the guidelines as to whether it is compulsory to register for GST.  If you're required to register for GST, you must apply to IRD within 21 days of becoming liable.  IRD rely on you to take this action yourself and may charge penalties if you don't register and they find out through routine checks.

You must register for GST if you carry out any taxable activities and your total turnover:

If you have an annual turnover of $60,000 or less, you can register for GST if you want to - this is voluntary.

 

ACT NOW IF YOU ARE GETTING INTO DEBT

The way IRD go about recovering outstanding debt varies from case to case.  It's not a one-size-fits-all solution.  How IRD manage a customer's debt depends on the type and amount owed and how compliant with payment arrangements the customer is.

IRD advise people who think they may have difficulty paying to contact them as early as possible to discuss options.  For example, IRD can set up an instalment plan for the customer to make payments over time.  IRD can also direct employers to automatically deduct payments from a person's salary or wages.

IRD regularly review individuals' and businesses' tax affairs and  provide assistance to encourage future compliance where needed.   IRD tell the customer what they owe, due dates for payment, and penalties and interest that may be building up. IRD may also request updated contact and financial details.

If  IRD investigations and compliance teams are brought in, they'll try and recover any outstanding debt or money owed. They'll look at the customer's information and compliance records to help them evaluate their recovery approach.    IRD also use data-matching with other government agencies to get information.  IRD only start legal proceedings to recover debt as a last resort.

It is quite noticeable when you look at Insolvency Notices for businesses nowadays that IRD is the Applicant in a vast number of cases, and the conclusion drawn from this is that IRD are getting more aggressive in their debt collection processes.  It is therefore a good idea to approach and work with IRD to make a payment arrangement if you are struggling to pay your IRD debt.

McLEAN AND CO KNOWLEDGE CENTRE AND ARTICLES ABOUT TAXATION AND BUSINESS IN GENERAL PRESS HERE FOR BUSINESS STARTUP KNOWLEDGE CENTRE PRESS HERE
FOR INFORMATION ABOUT COMPANY INCORPORATION PRESS HERE FOR PREVIOUS MONTH EMAIL NEWSLETTERS PRESS HERE

FOR PROPERTY INVESTMENT AND TAX INFORMATION PRESS HERE

FOR FRANCHISE INVESTMENT AND TAX INFORMATION PRESS HERE


The information provided in this email newsletter is for informational purposes only.   McLean and Co. accept no responsibility for the opinions and information expressed in the information provided and it is provided "as is" without warranty of any kind.    The user assumes the entire risk as to the accuracy and use of this document.   Readers are asked to seek professional advice pertaining to their own circumstances.    The McLean and Co. email newsletter may be copied and distributed subject to the following conditions:
  • All text must be copied without modification and all pages must be included.
  • This document must not be distributed for profit.    

 

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