This may sound like a silly question, but for income tax purposes there are two types of company, and the main difference is in the way the profits (or losses) are dealt with. Regular company (my description). Unless you elect…
Motor vehicles in business – a welcome change
In a recent article, I cautioned about the risk of fringe benefit tax by operating a company motor vehicle as part of a small business. Until recently, if a company car had personal use, it was subject to fringe benefit…
Provisional tax explained
If you have just started a small business or have become a contractor with responsibility for your own tax affairs, you may have heard of provisional tax, and wondered how it will affect you. Don’t worry – you are…
Shareholding changes in small companies
The Companies Office website is great for filing Annual Returns. Things which haven’t changed simply get ticked. And shareholders and directors can make shareholding changes easily too. Bur care is needed before noting shareholding changes. It’s easy to overlook some…
Sale of company business – tax implications
Some time ago I dealt with a case typical of poor business tax planning. I’ve changed the figures and details to preserve confidentiality, but the income tax issue I highlight is real – and common. My clients, a middle aged…
Interest on your business loan – is it deductible?
If you’re in business in New Zealand and you borrow money, the interest you pay to the bank is deductible for income tax – right? Well, maybe it is, but there are plenty of traps to avoid. One is on-lending…