Financial Statements: Compliance

Tax Compliance

Where a taxpayer receives income and tax was not deducted at source, there may be a New Zealand income tax filing obligation. There may also be a need to prepare financial statements where the income is received by an investment vehicle, such as a company, trust, partnership, and joint venture.

For a company, full financial statements are only required if it derives income or incurs expense of less than $30,000 per year. Otherwise, full financial statements are required to meet the minimum reporting requirements under the Tax Administration Act 1994.

Accounting

Who Can NZ Property Tax Help With Compliance

We can assist with the preparation of financial statements and tax returns for different types of organisations. Everything from large companies and small to medium sized businesses, to property focused salaried employees investing in rental properties.

Not only do we provide services to local businesses, we can also provide tax compliance services to entities with cross-border investments.

Our team endeavours to add value and provide robust and clever solutions to service our long-term clients.

  • Is the taxpayer undertaking the activity by themselves or others?
  • Is change of ownership anticipated?
  • Where does the taxpayer want future income and capital gains to be located?
  • Does the proposed structure provide asset protection required by the taxpayer?
  • Does the proposed structure allow for income generated from the property to be taxed at less than 33% (or 39% after 1 April 2021), or distributed to related taxpayers on a lower marginal tax rate?
  • Can financial costs associated with the purchase be deducted for tax purposes? Can any losses incurred be offset against other income?
  • What degree of control can the taxpayer exercise over the entity that owns the property?
  • Are the formation and ongoing costs justified against the proposed structure?
  • Is the taxpayer undertaking the activity by themselves or others?
  • Is change of ownership anticipated?
  • Where does the taxpayer want future income and capital gains to be located?
  • Does the proposed structure provide asset protection required by the taxpayer?
  • Does the proposed structure allow for income generated from the property to be taxed at less than 33% (or 39% after 1 April 2021), or distributed to related taxpayers on a lower marginal tax rate?
  • Can financial costs associated with the purchase be deducted for tax purposes? Can any losses incurred be offset against other income?
  • What degree of control can the taxpayer exercise over the entity that owns the property?
  • Are the formation and ongoing costs justified against the proposed structure?

As taxpayer’s circumstances are different, detailed analysis of each individual is required before an ownership structure can be recommended.

Who are our clients?

Our clients range from

  • Expat and immigrants, with employees of an overseas employer to high-net-worth individuals,
  • Property investors, with waged and salaried employees with one or two rental properties, to larger property clients including developers and large dealers in property, and
  • Small and medium sized businesses turning over $50,000 to $10m.
  • Entities with inbound and outbound investments

What kind of industries, sectors, and people do we assist?

We work with all sectors, including:

  • Architects and draftsmen
  • Engineers
  • Plumbers
  • Electricians
  • Tradesmen
  • Rental property managers
  • Lawyers
  • Project managers
  • Farmers
  • Importers and exporters
  • Retailers
  • Any other property related professionals

Our approach

  1. Review your needs both for internal management accounting and to look at your year end compliance accounting services. We also consider your provisional tax requirements, GST, other tax types, and any special requirements you may have.
  2. Provide our fee estimate for the required accounting services, as transparency and certainty of cost are important.
  3. Write to your old accounting advisor to request transfer of your historic records to make the transition seamless for you. We will also link you to our tax agency so we can fetch tax records from IRD’s systems.
  4. Manage your affairs throughout the year, including collecting records from you at year end, managing any GST requirements, e-filing your tax returns to speed up tax refunds, and filing all statutory and accounting returns with the relevant authorities on an ongoing basis.

If you would like to know more about income tax, GST, PAYE and FBT returns, click here.

Need Accounting Or Tax Compliance Services?

Get in touch with our team who can solve all your accounting and tax compliance services in one go.

Please refer to our people for more information on who we are, our experience and how we can help.

We offer a free no obligation consultation where we can discuss:

  • your current tax situation and position;
  • highlight tax issues and opportunities; and
  • how we can add value and assist.
Book a Consultation