Compulsory Zero-rating of Land

The compulsory zero-rating (CZR) of land rules have applied since 1 April 2011. The rules were introduced to combat a pattern of transactions where Inland Revenue (IRD) was paying GST refunds to land purchasers, but there was no corresponding GST returned by the vendor.


Although simple in principle, mistakes are being made. To recap, the rules require a transaction that wholly or partly consists of land to be zero-rated if:

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Holiday Pay Mishaps

As seen through the media recently, errors within holiday pay calculations are more common than we’d like to think and not just limited to Government organisations. Due to the complexity of the calculations required to monitor and record holiday pay, errors or deviations from the Holidays Act 2003 (the Act) requirements can occur. 


This can result in under or over payments to staff.


Common payroll mistakes include:

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Changes to How SMEs Pay Tax

The Government has recently announced a package of proposed tax changes that intend to reduce compliance costs and make tax simpler for businesses. The package is part of the Inland Revenue’s big picture ‘Making Tax Simpler’ initiative that aims to modernise and simplify the tax system. While the proposals will generally apply to all businesses, the changes are expected to benefit small businesses the most.


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The early quote is likely to get the worm

There are the quick and the dead.

Although the phrase was originally seen in The Bible and “the quick” meant the living, its more modern meaning is apt in business. Act quickly, or your business will die.

An example is Geoff, who rang Michael the tiler. Would he be interested in quoting for a job? Michael was keen and asked for contact details to be emailed, which Geoff did.

Then the phone rang.

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Advertising for profit

Do you measure your responses from advertisements? 

How many of those responses turn into sales? Don’t know? Then ask your new customers, every time, why they came to you. 

Further, have a look at the quality of customers you’re attracting, in other words, whether they're serious about what you offer. There’s no point in advertising for poor quality business. 

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Getting your PIE tax right

If you're investing in a PIE, be sure to get the right tax rate (PIR). 

You should check with us when we do your tax return each year as it can change from year to year and there are no refunds of overpaid tax. 

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Boost income by offering more every time

The following story is a great example of a business adding value to their service.

Jane rang an Italian restaurant to book a table for lunch on Sunday.  

“Would you like us to put some antipasta and mineral water on the table so your guests have something to nibble while they wait for their main course?” the restaurant asked. Jane said she would have the mineral water.  

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GST on the way for offshore web purchases

You’ll soon be paying GST on purchases you make online from overseas companies. 

Many overseas companies have agreed to cooperate with the New Zealand Government and charge their customers GST, provided the system is kept simple. These companies will collect GST and remit to our IRD. Australia is also looking at creating a register of offshore sellers.

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