Danger in cashing up when company sells

If your business is in a company, you need to understand tax on capital gains
 
Tax law dictates you must not take any capital gains out of the company except when winding up. 
Here is the big danger. You sell your business for a nice profit of, say, $200,000. Naturally, the first thing you think of is how you can use this. So you take the money out of the company and, whoops, you've “broken the law”.
 
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PAYE salaries for company owners

The law has just been changed. Provisional taxpayers will be permitted to take a PAYE salary and still remain provisional taxpayers. 
 
Some people have been doing this already, but it has never been entirely correct.
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FBT on work-related vehicles

You must pay FBT on a work-related vehicle, if it's available for private use. It doesn't matter that the vehicle is a commercial vehicle and not a car, nor that it's been sign-written to comply with Inland Revenue requirements.
 
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Low rates not so good

Don’t be taken in by very low interest rates for hire purchase, or even those offering zero percent.
 
Many retailers occasionally offer “special deals” of 0% percent interest on hire purchases. Does it mean you pay only the ticket price over the term of the loan?
The answer is no, and in fact the total price can be very expensive.
 
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When is income from professional services derived?

The Inland Revenue Department (IRD) recently released a new interpretation statement discussing when income from professional services is considered to be derived, and hence becomes taxable. The statement replaces several older IRD Information Bulletin’s and consolidates their view, giving greater detail and more examples.

 

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Importance of good record keeping

A recent case Taxation Review Authority (TRA) decision has highlighted the importance of good record keeping. 

 

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Use of Home Office – New Rules – from 1 April 2017 for March balance dates

From the beginning of the 2018 tax year the rules for claiming for use at home are changing. 

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Cashflow management: 7 May provisional tax payment options

We would like to recommend an IRD-approved service those who are due to pay provisional tax on 7 May might find useful – especially if cashflow is tight after settling terminal tax.

 

Tax Management NZ (TMNZ) is a payment intermediary that gives you greater flexibility around how and when you make your provisional tax payments, while eliminating IRD late payment penalties and reducing interest costs.

 

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