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Coombe Smith Blog

Some past outrageous tax expense claims

What you can claim as a tax deduction is based on legislation and case law.  The law is "Income Tax Act 2007" (plus amendments and related regulations) and has two parts that need to be considered:

Section DA 1:   The General Permission Test – expenditure incurred in deriving business income.

Section DA2:    The Private Limitation Test – that is spending that is not of a private or domestic nature.

Expenditure deductions must be necessarily incurred in production of assessable income and not private in nature.  The legislation is a very thick volume, and new amendments to the Income Tax Act 2007 and a raft of amendment acts are passed on a regular basis.  To keep on top of the legislative changes takes many hours of what some might call unproductive time to be spent to remain informed.  When we know the legislation, we can advise appropriately to ensure our clients do not take an unacceptable tax position resulting in back taxes, penalties and use of money interest.  In extreme cases of tax ignorance, this can result in jail time. Read more…

 What is keeping people from achieving the success that they desire for themselves? (Of

course, if most people had achieved success, the self-improvement books and articles

such as this one would not be needed.)

 Possibly, the answer to this question lies within the process of goal planning and goal

achievement. Using the following strategic 7 tips may help you to consistently achieve

more goals and increase your dream for incredible success. (Note: Understanding that

goal setting or planning and goal achievement is a process is critical when using the

following 7 strategies.) Read more…

25 Things to Think About in Business

IRD
1. Always pay your taxes – the fastest way for a business to fail is getting behind on tax.
2. If you have tax arrears, call the IRD, negotiate a payment arrangement – something that is realistic – and stick
to it. Get a payment arrangement agreement in writing.

3. Do not fight the IRD, they have all the money and the resources; instead work with them. Read more…

For Change to Occur Successfully

The best way I have heard of making change happen, is this:

If you had to walk each day through a paddock and the grass was head high, you
would walk the path that you have always walked through. The path is the way you
always go because it's easy, the grass is all beaten down to a dirt track. Read more…

Market Value Property Valuations & GST

 

The importance of the GST treatment for the sale and purchase of land, particularly in respect of Auckland District Law Society agreements, cannot be understated.

 The need for care and certainty continues to be highlighted with the Court of Appeal's recent approach to Market Valuations of property. Read more…