Shedding light on our new brand
Since 2002, we have commonly been referred to as “TEAM”—an acronym of the Directors’ names that also reflects the importance we place on working together to produce practical, focused advice for our clients.
With a well-established and well-respected niche business, we felt the time was right to reflect this in our brand. We knew it was important to keep the equity that was already in our name. The new name ‘TaxTeam’ is a combination of our core business, how we approach that business internally, and the way we work with our clients.
We commissioned Cato Partners to create a brand that communicates our values and the nature of our business. The new brand’s key focus had to be on our relationship with our clients. This is represented in our new ‘TaxTeam’ logo. The Grey ‘T’ represents Tax, and is the solid foundation of the business, while the green ‘T’ represents the Team in the form of a shadow. The shadow illustrates our relationship with our clients, being ‘by your side’ as inseparable business companions. Our focus on personal interaction and commitment to helping our clients achieve their goals is what differentiates us. TaxTeam’s tagline emphasises this point—“We’re right there with you”.
Our colour palette strongly features green, reflecting the New Zealand environment and our natural, down-to-earth corporate personality.
The people at TaxTeam are the same as ever—find our details here!
Updated Australia/New Zealand Double Tax Agreement
The DTA between New Zealand and Australia was signed into force on 19 March 2010.
The main changes to the 1995 DTA relate to the withholding tax rates on payments on certain dividend, interest and royalty payments, as well as updates to the treatment of pensions and of persons working on government service and short-term secondments.
Withholding tax rate reduced to 0% for interest and dividends
Withholding tax is also reduced to 0% for portfolio dividends paid to the state (including government investment funds) or a local authority.
Withholding tax on royalty payments will reduce to 5%.
The new withholding tax rates apply from 1 May 2010.
Taxation of international workers
The DTA applies in New Zealand for income years beginning on or after 1 April 2010 for all non-withholding tax matters.
Tax Working Group releases final report
On 20 January 2010, the Tax Working Group released its highly-anticipated final report to the Government on suggested options for system-wide reform of the tax system. The full report can be accessed here: www.victoria.ac.nz/sacl/cagtr/pdf/tax-report-website.
The recommendations are significant and wide-ranging, and have the potential to transform the tax system completely. The key recommendations include:
- Aligning (or more closely aligning) the company, personal and trust tax rates;
- Increasing the rate of GST to 15%; and
- Introducing a land tax and/or scrapping depreciation on property.
Of most direct significance to our clients is the recommendation to increase GST, which will impact on all areas of the economy. Although an efficient method of tax collection, it is interesting to note that the proposed increase is out of step with Australia, which has a comparatively low GST rate of 10%, and the United Kingdom, which recently reduced VAT by 2.5%.
Any comprehensive tax reform is extremely difficult, and involves balancing numerous and, often, competing factors. It is clearly a case of 'watch this space' as the Government works through the report to decide which, if any, recommendations to accept.
If you would like to discuss the proposed changes, please contact us.
Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill
The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill was passed by the New Zealand Government, and received Royal Assent on 6 October 2009. Therefore, it is now law. The new legislation gives effect to a number of important tax reforms, including tax-free relocation payments and the introduction of the payroll-giving scheme.
The new legislation amends the Income Tax Act 2007 to ensure that certain types of relocation expenditure incurred by employers are exempt from both PAYE and Fringe Benefit Tax (“FBT”).
Importantly, this reform will apply retrospectively from the 2002/2003 income tax year. However, no guidance has been provided as to how a refund application can be made. Our recent discussions with the Inland Revenue Department ("IRD") indicate that, in due course, the Determination setting out the list of eligible relocation expenditure will be published in a Tax Information Bulletin. As a result of our submissions to the IRD, the list of eligible relocation expenditure will be expanded. Accordingly, we recommend that you begin collating records of any PAYE or FBT relocation expenditure that you have incurred. We are happy to assist with claiming the tax paid back from the IRD.
In addition, the new legislation introduces the much awaited payroll-giving scheme for charitable donations. The scheme will operate through the PAYE system, and will come into effect three months from the date of Royal Assent. Under the scheme, people whose employers have signed up to the scheme will be able to receive the tax benefits of their donations each payday, rather than waiting until the end of the tax year.