North Canterbury News: June 16, 2022

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2462738 TAXATION 22 North Canterbury News, June 16, 2022 TAXRETURNS ACCOUNTANCY T ASK FORCE L I M I T E D Debra Jowsey Karla Kilner Tax &Accounting Consultants since 1984 Overwhelmed? Confused? With the recent IRD changes to tax returns, GST returns, rental returns and pay day filing A-Plus Accounting is here to help. Give us acall. Friendly,knowledgable staff. A-Plus Accounting ☎ 027 67 33330 ncnaplus28422 Providing Accountancy Services to Oxford since 2001 Eligible for the $350 Cost of Living Grant? Get your tax return done! Single $40 off your bill on presenting this advert • Rentals / Lifestyle Properties Specialists • Advice on Cloud Accounting Systems • Business Budgeting Solutions • Advice for Business Start Ups • Assistance with MYOB/XERO Problems Dave Trayner, 9ABay Road, OXFORD Phn 03-312-4878 Email :atfoxford@outlook.com • Annual Accounts • Bookkeeping • GST/PAYE /PAYE/FBT/FBT Returns • TaxReturns/Tax Planning • Xero Setup and Training Registered Taxation Specialists PH 022 327 5046 www.nctbk.co.nz info@nctbk.co.nz 2487115 Govt needs more tax revenue sources: tax expert states By RILEY KENNEDY ‘‘There is always change, it never stays still.’’ CharteredAccountants Australia and New Zealand tax leader John Cuthbertson was referring to the New Zealand tax system. Mr Cuthbertson gave apresentation at the CharteredAccountants Tax Roadshow. The annual event was designed to discuss the most pressing tax topics affectingChartered Accountants’ members. This year’s roadshow discussed the new brightlinerules and other changes to the tax system, such as new disclosure requirements for trustswhich would come into effect next year. Mr Cuthbertson, whoisachartered accountant,has been in the taxindustry since 1991. He has been with Chartered Accountants for fiveyearsand was previouslyataxation director at PricewaterhouseCoopers for about 25 years. As thepopulation aged and agig economy —where workers leave traditional employment in favour of working independently on ataskbytask Kirsten Nicol Chartered Accountant M: 027 635 5427 E: kirsten@knaccounting.co.nz W: www.knaccounting.co.nz A: Office 4/61 Main North Road Woodend Taxing issues ... Chartered Accountants Australia and New Zealand tax leader John Cuthbertson, of Auckland, at the organisation’s roadshow event in Dunedin. PHOTO:PETER MCINTOSH basis for various employers —became moreprominent, the country needed to lookatdifferent waysofraising revenue, he said. While it couldbeconsideredNew Zealand had a‘‘broadbased’’ taxsystem he did not believethat. The country had three main tax sources —personal income tax, goods and services tax and corporate tax. Other sources of tax revenue needed to be considered for the futuresustainability of thesystem, he said. ‘‘I don’t think the system is in for an immediateshakeup but Idothink it will changeover time.’’ With an election next year, Mr Cuthbertsonexpected there would be discussion on the topic. Revenue Minister David Parker recently announced the Government was developing aTax Principles Act aimed at fairness in the tax system. When the draft legislation was being developed,the Government needed to be careful in designing the framework for whatfairness lookedlike. ‘‘Thatwill be more subjectiveand open to manipulation ...that is wherethere will be differences of opinion,’’ he said. CharteredAccountants alsowantedto see the ‘‘enshrinement’’ of the generictax policyprocess into the Tax Principles Act which would ensurethe legislation was still ‘‘workable and practical’’. One of the other elements of agood system was compliance and administration costs.‘‘For atax system,you want it to be easy to complywith and difficultnot to comply with,’’ he said.riley.kennedy@odt.co.nz Detailed review of Charities Act Acomprehensive review of the Charities Act aims to modernise the legislation to increase transparency for the public, improve access to justice services and reduce the burden on smaller charities. Community and Voluntary Sector Minister Priyanca Radhakrishnan says the changes will include reduced reporting requirements for very small charities, increased transparency on accumulated funds and amore accessible tribunal for charities that want to appeal decisions. The review of the Charities Act commissioned by the Government is led by the Department of Internal Affairs. ‘‘There are about 28,000 registered charities that contribute greatly to New Zealand society, and we want to ensure that our legislative settings are fit for them to continue supporting our communities into the future,’’ says Ms Radhakrishnan. She says the past two years had shone the spotlight on the important role Trusts play in supporting New Zealanders. ‘‘We are progressing tangible changes that will support charities to thrive while ensuring the public have trust and confidence in the charitable sector.’’ Ms Radhakrishnan says very small charities will benefit from an easing of financial reporting requirements to the regulator. ‘‘This will free up resources to allow volunteers to spend more time focused on communities and doing the mahi they are passionate about.’’ The changes will lead to greater transparency from larger charities with annual operating expenses over $140,000, requiring them to declare and explain any accumulated major funds such as cash, assets or other resources. ‘‘Many of New Zealand's largest charities have significant unexplained accumulated funds. It is important they are transparent about the reasons for holding on to alarge quantity of funds, including donations. ‘‘Transparency builds trust, and the public need to be able to trust charities responsible with their taxfree income,’’ Ms Radhakrishnan says. As part of Budget 2022, the Government is also investing $1.7 million to enable charities to appeal a wider range of decisions. Appeals to significant decisions will be made to an expanded Taxation Review Authority instead of the High Court, in response to calls from the sector to make the process less expensive and timeconsuming. The new appeals process will improve access to justice by allowing charities to selfrepresent and have more relaxed rules of evidence, while the timeframe for lodging an appeal will be extended from 20 days to two months. ‘‘I want to make it easier and less costly for charities to appeal decisions,’’ says Ms Radhakrishnan. ‘‘It is important that our system doesn’t just work for those who have the resources to navigate it. The same service and the same access must be available to everyone.’’ Abill is expected to be introduced this year to make these amendments to the Charities Act. The public will have an opportunity to provide feedback through the Select Committee pro cess. The Approachable Professionals Levelling up your financialliteracytohelp youreach your business goals Offering arange of accounting and consulting services. With experience in both small and large business: • Year-end Accounts • Income Tax • Forecasting • Budgeting • Company Administration • GST • FBT • Business Advice 2464346 Ring to book afreeconsultation BronwynCandish 021 517 001 77-83 High Street, PO Box97 Rangiora7440 Phone (03) 313 6001 bronwyn@sheppard-ormsby.co.nz 2463297
TAXATION North Canterbury News, June 16, 2022 Law changes recommended for charities 23 By RUSSELL PALMER WELLINGTON: Big charitieswill needto be moretransparent overtheirfunding, afteraGovernment review recommended changes to thelaw. The changes will require charities, whichare not required to pay tax,to explain any major accumulated cash, assets and other resources if they have operatingexpenses above$140,000. Administrativeburdens on small charities will alsobereduced, and it will be easier for charities to seek an appeal over decisions. Charities Services, which administrates the sector,and the CharitiesRegistration Boardwhichmakes decisions about registration, will also haveincreased powers. Community and Voluntary Sector Minister Priyanca Radhakrishnan announcedthe changesyesterday, saying about28,000 registered charitiesinNew Zealand made agreatcontribution to New Zealand, but the legislation needed to be fit for purpose. It follows areview by Internal Affairs (DIA), ordered by the Government in 2018 in the wakeofDestiny Church’s deregistration as acharity. The churchhad failed to file financial returns for two years and ignored several warnings from the CharitiesRegistration Board, whichwent so far as to say the deregistration was in the public interest. The board’s inability to punishuncooperativecharities prompted the new Labourled Government to order the review of the Charities Act, but the scrappingoftax exemptionfor charities was not considered, despite demands from the public. Ms Radhakrishnan said the past two yearsofthe Covid19 pandemichad shone alightonthe important role charities played. The changes would improve transparency and build trust, she said. ‘‘Many of New Zealand’slargest charities havesignificant unexplained accumulated funds. ‘‘It is important theyare transparent aboutthe reasonsfor holding on to alarge quantity of funds,including donations.’’ Charitieswould also finditeasier to makeappeals against decisions about them, withresponsibility transferred from the High Court to an expanded Taxation Review Authority. Some$1.7 millionwas set aside in this year’s Budget to enablethis. Charitieswould be able to represent themselves at the authority, reducing the costs of lodgingthose appeals, which would alsohave longersubmission timeframes. ‘‘Itisimportant that our systemdoesn’t just work for those who have theresources to navigateit. ‘‘The same serviceand the same access must be available to everyone.’’ Proposed changestothe Act.— Charity requirements—maintaining a charitablepurpose, having arules document,and having qualified officers— will be made explicit. Larger charities (with operating expensesover $140,000)will be required to report reasons for accumulatedfunds; to be included on an updated annual returnsform designed in consultation with the sector and iwi. Smallcharities to be exemptfrom financial reporting; threshold yet to be developed. Charities Registration Board membership will increase from threeto five. The board will now have power to disqualifyanofficer for ‘‘serious wrongdoing’’ or asignificant or persistent breach of obligations, without having to deregisterthe charity. Definitionof seriouswrongdoing to be clarified. The board will be required to publish decisions on declining an application for registration and deregistering acharity. Charities Services’ significant decisions and decisions of the board will be able to be appealed. Ms Radhakrishnan said an amendment Bill was expectedtobeintroduced this year, and consultation through the select committee process would be followed up to considerconcerns raisedbythe review. The DestinyChurch deregistration was tied up in thecourtsfor years,during Funds ... Many of New Zealand’s largest charities have significant unexplained accumulated funds, says Community and Voluntary Sector Minister Priyanca Radhakrishnan. whichitcontinued to notpay tax,and it regained its taxexemptstatus in 2019. Several of its arms were again deregistered after failing to meet requirements.Apetition last year also Call Prosser Quirke Accountants Chartered Accountants &Business Advisors 2299722v3 WORK SMARTER NOT HARDER 6Blake Street, Rangiora, New Zealand ph. 03 313 7824 email. team@prosser-quirke.co.nz Farm Accounting Business Advisory Taxation 03 313 6534 enquiries@abacusca.co.nz 220 King St, Rangiora PHOTO: FILE called for the churchtobederegistered after leader BrianTamakiorganised several protests against Covid19 lockdowns, whichthe petitioners said was promoting ‘‘uncharitable views’’. —RNZ www.abacusca.co.nz 2488461 2464384 LIDDELL AND CROOK LTD CHARTERED ACCOUNTANTS HELPING YOU TOGET IT RIGHT AND GET AHEAD Accounting Services Business Support Xero Training and Conversion AMBERLEY OFFICE 2A Pound Street, Amberley Phone 03 314 8717 Amberley hours: Wednesdays only 9.00am –12.00pm and 1.00pm-2.30pm Email rachel@liddellcrook.nz CHRISTCHURCH OFFICE 62 Langdons Road, Papanui, Christchurch Phone 03 352 1076 www.liddellcrook.nz 2462480
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North Canterbury News: June 16, 2022

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