It is a big month for Inland Revenue as they roll out the third stage of their Business Transformation Programme. This will move Inland Revenue further along the pathway of digital processing of returns and away from old paper based systems. Tax payers who previously filed a Personal Tax Summary (PTS) will be sent an income tax assessment for the 2019 tax year from Inland Revenue if their only income is from employment and investments. To ensure employees are being taxed at the correct rate by their employers, businesses now have to file employment information each payday instead of filing an Employer Monthly Schedule (IR348). If you have a form of payroll software, the process of providing this employment information should be communicated directly to Inland Revenue after each pay run.
The Taxation (Annual rates for 2019-2020, GST Offshore Supplier Registration and Remedial Matters) Bill is currently before a select committee to report back in June. The Bill proposes ring-fencing rental losses in an effort to level the playing field between property speculators/investors and home buyers. The proposal applies to ‘residential rental property’ but, excludes an individual’s main home and land that is subject to the mixed-use asset rules. Tax losses incurred by speculators or investors on their residential property will not be permitted to offset against other income (salary/wages or business income) from 1 April 2019. The losses will be able to be used in future years when the properties are making profits or if the person is taxed on the sale of land.
KCA has been operating from our new offices at Unit A1, 15 Talisman Drive since January. Our thanks to many of our clients who were able to join us for morning and afternoon tea on our opening day in February. We look forward to showing all clients our new office when you next visit.
Servicing the Bay of Plenty, new clients looking for a friendly accountant that emphasises client service should come and visit Geoff for a free consultation.