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What's New?...
Vision Accounting

Welcome to the Vision Accounting June e-newsletter. This is a great way for us to share important information you need to know, helpful tips and hints and practical resources to help you in business for 2014.
 

What's New?

At Vision Accounting, it has certainly been an action packed month helping our clients with end of year financials, GST and compliance requirements. If you haven’t got your end of year records to us, please do soon. We can then process them for you and let you know your tax payments for the IRD. As we know, cashflow is king, so the more prepared you are for payments, the better for forecasting and there are no nasty surprises.
 

Continued Commitment

We are delighted to continue to support small to medium businesses through our gold sponsorship of the North Harbour Business Association. We encourage all businesses on the shore to consider this worthwhile organisation and the benefits and opportunities it could offer them.

Here is some information which may also help you in your business.
 

What you need to know:

SUPERANNUATION: DECISIONS, DECISIONS

If you have (or had) funds in foreign superannuation schemes, let us know. Recent changes to legislation may affect you. Read on to find out more.


I transferred my Australian super to KiwiSaver. Is it taxed here?

Transfers from complying superannuation funds in Australia into KiwiSaver won’t be taxed in New Zealand on transfer. However, future earnings on these transfer funds will be taxed as normal KiwiSaver investments.

This isn’t the case with transfers from other countries – there are different New Zealand tax implications on transfers in these cases. However, under the new rules, if you transfer non-Australian foreign superannuation into KiwiSaver after 1 April 2014, you will be allowed to make a withdrawal from KiwiSaver to pay your tax bill.
 

I withdrew (or transferred funds) from my foreign super last year. What are the tax implications in New Zealand?

If you withdrew or transferred funds anytime between 1 January 2000 and 31 March 2014, and have not previously accounted for New Zealand tax on these funds, you will be able to meet your tax obligations by paying tax on 15% of the amount transferred or withdrawn. The remaining 85% of the withdrawal will not attract income tax. This adjustment must be shown in the tax return for either the 2013-14 or 2014-15 income years.

For a limited time, you can choose to calculate your tax liability using this concessionary 15% rate option without penalties or interest. Alternatively, you can apply existing law (which may involve imposition of penalties and interest). 

Talk to us to work through the options that are best for your situation.
 

I’m Confused. I’ve been declaring my foreign super under the FIF rules. What happens now?

The current foreign investment fund rules will no longer apply to foreign superannuation schemes from 1 April 2014. However, if you previously declared your foreign superannuation and used the foreign investment fund (FIF) income rules prior to 20 May 2013, you may choose to keep using them in relation to your foreign superannuation interest after 1 April 2014 under the ‘grandparenting’ provisions.

This Month’s Top Tips

Did you know the new changes to ACC!!  It’s good news…
Workers and employers will pay $387 million less in ACC levies in 2014/15. The cuts affect the Earners Account (paid by workers) and the Work Account (paid by employers).

This is a good time to review your ACC policies and payments. Are you managing ACC on your own? Are you aware of the workings of your ACC policy?

Good questions to ask yourself are:
  1. Do I have the right policy? ACC have tailor-made a special policy for all New Zealand businesses.It is called ACC Cover Plus Extra.
  2. Is my business correctly classified by ACC? An incorrect classification could lead to unnecessarily high levies.
  3. If income is split to separate shareholders, is each individual properly classified?
  4. Am I aware that I have the ability to adjust my cover levels and in this way reduce my contributions?
To get answers to these questions contact Vision Accounting and we will put you in touch with an authorized ACC adviser.

Ask us a question

Have you got an accounting question that leaves you worried or confused?

We love a challenge – see if we can come up with the answer that gives you the ‘ah ha! moment'.
Contact Virginia at Vision Accounting NOW on 09 415 0319

Terms and Conditions
You don’t have to be a Vision Accounting client, we’re here to help. We understand that some of your questions might be quite gnarley, therefore we reserve the right to restrict our time spent considering your question to one hour.
 
Tel: (09) 415 0319
Email:
admin@visionaccounting.co.nz
Web:
www.visionaccounting.co.nz
Postal Address:
PO Box 303 157
North Harbour
Auckland 0751

Physical Address:
106A Bush Road, Albany, Auckland
(When posting documents please use the PO Box address, as there is no mail delivery to our street address. Thank you.)

Remember

We hope you found these updates useful, and remember - we offer the service of a one on one meeting to review your financials and help you make better business decisions for the next 12 months.
This one meeting can make a huge difference to the cashflow and profit of your business.
If you would like to book in for a business review meeting, or to have a no-obligation chat - we’re happy to help.

Thanks,
Virginia and the team at Vision Accounting 
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Vision Accounting Solutions
 
Copyright © 2014 Vision Accounting Solutions Ltd, All rights reserved.


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