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McLEAN AND CO.
Telephone Share Scams
REMEMBER- TAX DUE 7 APRIL
A number of clients are due to pay 2007 Terminal Tax on 7 April 2008. McLean and Co have sent reminders out for these.
Penalties will be added if you don't pay on due date. If you will have dificulty in paying on due date- contact IRD, who can assist in setting up a payment arrangement to pay off debt in instalments over time. This will mean that you will be still be charged oncosts, but ultimately you'll pay a lesser amount on terms of interest and penalties, as long as you keep to any agreed arrangement.
A NEW LATE PAYMENT GRACE PERIOD
Each taxpayer, regardless of their compliance, starts with a clean slate with IRD and will get a grace period the first time they make a late payment after 1 April 2008. IRD will send the taxpayer a reminder, stating a further date for payment. If payment is not made, late penalties will be imposed as if the reminder had not been given
Futher late payments in the subsequent two years will not qualify for a grace period.
PARENTAL LEAVE FOR SELF-EMPLOYED PERSONS
The Parental Leave and Employment Protection Act 1987 gives entitlements to parental leave, including some paid parental leave, for male and female employees. Subsequent amendments to the Act mean that self- employed persons can also apply for paid parental leave.
The Act defines a self-employed person as someone who is working in one or more of the following, other than as an employee:
To be eligible for parental leave payments, self-employed persons must:
To apply for parental leave payments the self-employed person will need to fill in the IRD form IR888. The application must be accompanied by either:
For eligible self-employed persons, parental leave payments are equivalent to their average weekly income up to the rate of maximim entitlement. The maximum entitlement is adjusted each year by any percentage in average weekly earnings. As at 1 July 2007 the minimum amount of parental leave payable to an eligible self employed person is $112.50, and the maximum entitlement is $391.28.
These are common forms of fraud that affect New Zealanders.
Advance Fee Fraud
In an advance fee fraud the victim pays money up front in return for goods and/or services which the fraudster never supplies. The money paid in advance is lost. The most common version of advance fee fraud is the Nigerian-type letter which continues to plague New Zealanders in the post and by email. These are best deleted and ignored.
See also advance fee fraud warning by the Serious Fraud Office.
Prime Bank Instrument Fraud
Prime bank instrument is a form of advance fee fraud. People are invited to take part in a secret market which is supposedly the domain of elite banks. People are offered instruments such as “prime bank notes” or “prime bank debentures” which they are told will bring very high returns. This market does not exist. Money sent to these schemes is lost.
Affinity fraudsters prey on people who trust each other, particularly members of religious, social, or cultural groups. They use the trust that exists within these groups to help steal money.
These are schemes where money from new investors is used to pay "interest" to earlier investors to give the illusion that the investment is successful. See more in How to Spot a Scam at investor information and also at www.sec.gov/answers/ponzi.htm
Fraudsters are increasingly using the internet to dupe victims out of their money. For information on how to avoid internet scams see www.sec.gov/investor/pubs/cyberfraud.htm
New Zealanders have lost many millions of dollars to people from overseas who ring them up offering bogus share deals.
These callers are clever and persuasive. They make offers that are hard to resist. They target people throughout the country, particularly small business owners.
Many people have fallen victim to telephone offers of bogus share deals. In a good many cases no shares are bought at all. If shares are bought they turn out to be worthless and can't be sold.
Later people are often called again, this time by an apparently new "broker" who says he has a buyer for their shares. Again the message is very convincing, and many people send more money to pay for the new transaction. This money too is lost
Do not send any money. It is always unwise to send money to someone overseas who you know only from an unsolicited telephone call. Money sent overseas to these firms will probably never be recovered
Hang up on the caller. Don't try to engage with the caller. They will use all their skill to persuade you to part with your money.
If you want to buy shares in overseas companies - contact a New Zealand broker who is responsible under New Zealand law
Since August 2000 the NZ Securities Commission have published the names of firms who have targeted people in New Zealand. These callers do not hold a New Zealand broker's licence or futures dealer authorisation and do not comply with New Zealand law.
They have not provided evidence to the Commission that they are registered in their home jurisdiction to undertake this type of securities business.
This list is not exhaustive. If you are cold called from a firm that is not on the list it does not mean it is genuine. It is always unwise to send money overseas to someone who you know only from an unsolicited telephone call. These firms also refer to fake agencies with official-sounding names to prove that they are genuine. The brokers who have come to the Commission's notice are:
See also www.sharescams.org.nz
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