Robin Whalley Ph 03 548 2250

News

As everyone is well aware, NZ is phasing down into Level 2 on Thursday (14th May). Our physical office will open from Monday 18th May, but this will still be restricted, depending on staff commitments (and working around coughs/sniffles).  You may still find there will be a delay in response times. If it is necessary […]

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Good evening all Just touching base and following up after the PM’s latest speech. Our physical office will continue to remain closed through Alert Level 3.  We will review the situation around the 11th May 2020, when the government does their next review. The team will continue to work remotely from home and are available […]

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Please note our office is closed during the Government Lockdown period. Our team are working reduced work hours the best they can, please expect delays in email responses and at times reduced functionality due to working remotely. For any urgent queries, please contact Phil Smith, 027 520 1494 (preferably during working hours) Our thoughts are with you. […]

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News

Level 2 – Office open but restricted

As everyone is well aware, NZ is phasing down into Level 2 on Thursday (14th May).

Our physical office will open from Monday 18th May, but this will still be restricted, depending on staff commitments (and working around coughs/sniffles).  You may still find there will be a delay in response times.

If it is necessary to have a physical meeting, it will by strict appointment only.  If you need to drop off information, please ring us in advance to make sure the office is open.

If you feel unwell in any way please do not come in, we will understand and happy to make other arrangements.

On another note, please be aware that the IRD seem to be having the odd glitch with their new system and many of you may have received ‘odd’ emails/letters from them.  If you have any questions regarding these IRD notices please do not hesitate to email or phone us, it may be an IRD error, or something you do need to follow up on.  (Please note the best and fastest way to contact the IRD at the moment for anything (including payment arrangements) is via email/MyIR secure mail)

We hope this email finds you, your whanau and businesses well.

All the very best over the next few weeks and we look forward to catching up with many of you in the near future

From the Robin Whalley Associates Team 😊

Office Still Closed into Level Alert 3

Good evening all

Just touching base and following up after the PM’s latest speech.

Our physical office will continue to remain closed through Alert Level 3.  We will review the situation around the 11th May 2020, when the government does their next review.

The team will continue to work remotely from home and are available via email (email at the moment is best).  Although, please expect delays in our replies as we all work different and diverse hours at the moment!

Phil is always contactable during working hours (9am to 5pm) on 027 520 1494 for anyone who has a more urgent enquiry/request.

We sincerely hope everyone is fairing well in these unprecedented times.

We recognise everyone is experiencing these times differently for a wide variety of reasons.

We are thinking of you all and look forward to touching base in the near future.

Take care

Kia Kaha Kia Toa

The Robin Whalley Associates Team

Office Closed

Please note our office is closed during the Government Lockdown period.

Our team are working reduced work hours the best they can, please expect delays in email responses and at times reduced functionality due to working remotely.

For any urgent queries, please contact Phil Smith, 027 520 1494 (preferably during working hours)

Our thoughts are with you.

All the very best

Partial Office Closure

Our office is currently open by appointment only. You can contact the team via email or phone to arrange an appointment.

While the team are working reduced hours, please note the response time may be delayed.

You can phone Phil during normal business hours.

Property Traders Handed Big Bills

Inland Revenue scrutiny of property transactions has resulted in $12.5 million in tax bills for property traders and speculators last year.

The department is tasked with identifying property dealers and speculators who should have paid tax on the gains they make from buying and selling properties.

A spokeswoman said its current focus was on identifying transactions that should be caught by the brightline test, which requires that tax is paid on gains from investment properties bought since October 2018 and sold within five years.

When it was first introduced in October 2015, it required tax to be paid on investment properties bought and sold within two years.

She said sometimes when a brightline transaction was identified it showed a pattern of dealing that led to a review of past transactions.

Before the brightline test was introduced, there was no set time period within which a sale was taxable. It was determined according to the intent of the seller. If Inland Revenue could show that they bought the property with the intent of sale, tax would be applied.

She said in the year to December 2019, there had been 146 audits of brightline transactions resulting in $2.6m in additional tax being due.

There were 122 dealer and speculator audits, producing in $9.9m in tax owing.

Tax expert Terry Baucher said he had noticed an increase in scrutiny on properties bought and sold before the brightline test was introduced.

“Inland Revenue appears to be looking at property sales that have happened prior to the introduction of the brightline test and if the brightline test had applied they would have been taxable… what has caught my eye is they’re going back a long way.”

He said some transactions as long as seven years ago had been flagged. “The new approach seems to be ‘we can go back all that way –  because you didn’t file a tax return to cover what was taxable the time bar rules of four-and-a-half years to look at things don’t apply.”

He said he had expected more stringent action after the Government opted not to pursue a capital gains tax.

People who had not paid the tax they should could also be handed sizeable penalties, he said. Interest could be charged on what was owed at a rate of more than 8 per cent a year. That meant a transaction from five or six years ago could end up with as much interest owing as there was tax due.

Andrew King, executive officer of the NZ Property Investors Federation, said Inland Revenue’s Property Compliance Team had been successful in identifying speculators.

“Very few people try to pass themselves off as investors rather than traders anymore. From our point of view it is a great initiative. We represent rental property providers and these people are giving us a bad name by trying to pass themselves off as us and not paying their fair share of tax. “

Christmas Closedown 2019

Christmas Closedown 2019

Our office will close on Friday the 20th of December 2019 and reopen on January 13th 2020.

Wishing you and yours a safe and happy holiday – see you in the new year!

New Trusts Act 2019: What you need to do

If you’re protecting your family property in a trust, there may be changes you need to make before the new
Trusts Act comes into force on January 30th, 2021.

The changes to the Trusts Act (the first in more than 60 years!) aim to make trust law more efficient and
accessible, lower admin costs, simplify core trust principles and essential obligations for trustees, and make it
easier to resolve disputes.

While it might seem an eternity away, 2021 will whip around quickly, so here’s what you need to do.
1. Review your trust: Meet with your accountant and/or lawyer to review arrangements for your trust.
There might be opportunities to improve your tax structure, reduce your risk profile and better your
family’s financial situation.
2. Revisit your succession planning: The new legislation has extended the maximum lifespan of trusts by 45
years, to 125 years.
3. Presumptions: There will now be a presumption made that trustees will notify beneficiaries of basic trust
information. Including the fact that they are a beneficiary of the trust. Trustees must now consider
whether there are any factors that would allow them not to apply this presumption (such as whether the
information is personally or commercially confidential, or whether the information will impact family
relationships, in the case of family trusts). The consideration of whether the presumption applies should
be made at regular intervals.
4. Be prepared for beneficiary requests: The new law means most trust beneficiaries will be able to request
financial reports on the state of the family trust and find out ‘who gets what’. Be prepared for extra
admin, costs and possibly damage control if you’re having to avoid family issues around distribution of
funds.

Know your mandatory responsibilities as a trustee:
• Knowing the terms of the trust
• Acting according to the terms of the trust
• Acting honestly and in good faith
• Holding trust property
• Acting for the benefit of the beneficiaries or the permitted purpose
• Exercising trustee powers for a proper purpose

Default duties: Default duties are obligations by which trustees must abide — unless the settlor decides
otherwise when the trust is established. Default duties can be modified or excluded if this is how the settlor
wants to set up a trust. This is an area we would highly recommend reviewing.

Find out more at this link: https://nzlaw.co.nz/news/trusts-act-2019/

“The expectations and risk of an independent trustee are nowadays akin to that of an independent director.”

Every undeclared cash job leaves a trail

IRD have recently sent us the following information about cash jobs;

“We’re looking hard at tax crime in the construction industry.

We’ll be contacting tradies to encourage them to declare all of their income through their GST and income tax returns. While most people in the construction industry are doing the right thing, we’re reminding your clients that undeclared cash jobs can have negative consequences. They can result in tax penalties, a criminal conviction that could affect their ability to contract for work, and even prison time.”

To find out more, visit ird.govt.nz/getitright

Top 10 most expensive cities for expats

For the second year in a row, Hong Kong has taken out the top spot on the list of the world’s most expensive cities for expatriates, based on an annual report by consulting firm Mercer.

Aimed at helping multinational companies and governments determine compensation packages for the skilled foreign workers the send or hire overseas, the report measures the comparative cost of more than 200 items in 209 cities. The items include housing, transport, food, clothing, household goods and entertainment.
Asian cities account for eight of this year’s top 10. However, the list’s biggest climber is Turkmenistan’s capital, Ashgabat, which soared 36 spots to seventh place due to a shortage of currency and imported goods driving up the prices.
Hong Kong’s housing market and fluctuations in its currency, which is pegged to the strong US dollar, kept the city at the top of the list. Australian cities fell down the rankings, largely due to depreciation of the local currency against the US dollar. Sydney is the country’s most expensive place for expats, coming in at number 50.

Top 10;

  1. Hong Kong
  2. Tokyo
  3. Singapore
  4. Seoul
  5. Zurich
  6. Shanghai
  7. Ashgabat
  8. Beijing
  9. New York City
  10. Shenzhen

Article from InTheBlack issue October 2019

“Best of Today” programme

New workplace well-being programme welcomed by companies

Stress is one of the leading causes of performance dropping at work and a new mental health programme developed in Nelson aims to reverse this trend.

The Best of Today programme had its national launch in Nelson.

Founder Anna Gibbons said cultivating positive mental health within workplaces was proven to minimise stress, increase productivity and creativity, and improve workplaces’ reputations. She said 91 per cent of employees at companies that supported wellbeing felt motivated to do their best.

“This is why I have created Best of Today, ensuring it has within it the dimensions of hauora – spiritual, mental and emotional, physical, family and social, and land and roots.”

Participants on the course received boxes containing tangible tools and gifts to strengthen the learning, Gibbons said. What was in the box was a surprise.

Best of Today founder, Anna Gibbons said the boxes supplied with the programme were a tangible tool for participants to support their learning.
Best of Today founder, Anna Gibbons said the boxes supplied with the programme were a tangible tool for participants to support their learning.

 

“To create healthy habits, we need constant reminding. The gifts are to trigger the brain to remember what the healthy habit is for that fortnight.

The boxes go home with employees to create a “work life harmony”.

“The tools get shared with their nearest and dearest so everyone is on the same page.”

Pic’s Peanut Butter was one of the first companies in the country to embrace the initiative.

Founder Pic Picot said he was keen to do anything he could to make people’s lives better, so he got on board with the initiative before its official launch.

“You want your people to get the best out of their lives. And if they get the best … they’re going to make the best of their contribution to the company.”

Other local companies are also using it including PL Law, Robin Whalley Associates and McCashin’s Brewery.

https://www.stuff.co.nz/national/health/114848022/new-workplace-wellbeing-programme-welcomed-by-companies

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