Companies going into voluntary or forced liquidation may have limited liability (the extent of the money invested) but such limitations do not cover the taxes due to the Inland Revenue Department (IRD).
For instance, if a Company with $1000 as capital collapses, the liability of its Directors would be limited to $1000.
However, such limitations would not apply to IRD.
As a leader in a small business operation, your employees rely heavily on you for guidance and they also have a large stake in the success of your business. Nearly every employee-related performance depends on effective leadership. Ineffective leadership can disrupt the employer-employee relationship, making it harder to achieve business goals. Therefore, it is vital to have good leadership skills.
Minimum family tax credits are mainly available to low income earners. Minimum family tax credit is a payment made to families with dependent children aged 18 or younger, so they have a minimum income of $438 a week after tax ($22,776 p.a. from 1-4-2014).
When an accountant tells you ‘I will do your accounts.’ what does that actually mean? To answer this question, I need to start from explaining what an accountant is doing. Basically, in terms of a small business, what an accountant does is book keeping, bank reconciliation and reporting.
In this article we will introduce a time management tool called priority matrix. You can have try and see whether it is the right one for you.
Some people set up a family trust to receive residential care subsidy when they get old. By setting up a trust they dispose their interest in an asset to be eligible to receive subsidy. With changing rules of social security it is getting harder to get residential care subsidy.
With the abolition of gift duty you can gift as much as you want and there will not be any tax duty. However, for residential care subsidy there still is a maximum level of gift per couple is $26,000.
What is residential care subsidy?
Residential care subsidy is paid to rest homes or hospitals directly for entitled people by the Ministry of Health.
When a business wants to upgrade its computer, it is easy to become confused by the technical data. In this article I will provide you some basic information that will help you to choose a right computer for your business.
Choosing a PC is actually choosing its hardware. For office use, it is mainly about choosing RAM, CPU and hard drive.
Healthy body means healthy thoughts for business
Mobile application – Moves is awesome to record your daily activity.
This life style changing APP records real time information and its name is Moves. It tracks your everyday life and exercise. What you should do is just carry your phone in your pocket or bag.
This app automatically records your daily walking, cycling and running. It is able to recognise places in your daily life. It will generate a visualised report showing how you spend your day.
With the app, you can see you every day exercise and review your lifestyle. You can start with small changes that can lead to a fitter lifestyle and healthier habits.
Look through company (LTC) is a fairly new concept to our tax system which was introduced in Budget 2010. Basically the main purpose of introducing LTC is to strengthen our tax system by putting a cap on loss attribution rules.
Look through company rules were applicable from 01/04/2011 onwards and only apply to New Zealand resident companies.
What is it?
Subpart OB of ITA 2007 defines the rules related to Imputation credit accounts (ICA). Every company in New Zealand need to maintain an ICA account, basically if you are paying income tax then it is advisable to maintain this correctly as when you start distributing dividend you can also distribute imputation credits to the shareholders.
Imputation credit account is a memorandum account (section OA2), and section OA3 defines an ICA account must record all credits and all debits that arise in the account as at their credit date or debit date.
Credit balances
The credit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of credits over debits.
Debit balances
The debit balance recorded in a memorandum account during a tax year or income year, as applicable, is the excess of debits over credits.
