April 2012 E Newsletter

Welcome

In Auckland, we’re experiencing some lovely autumn weather at the moment– those winter days aren’t too far away! You will remember from March's E Newsletter that we were giving away and iPad 2 to a lucky winner who filled out our online Client Survey. We are pleased to announce that the winner is Chris and Helen Russell. Thank you for entering and we hope you enjoy your new iPad.

For most of you, the tax year finished on 31 March, and that means that it is time to think about gathering the information needed for us to prepare your annual accounts and tax return.

We have online annual checklist questionnaires available for you to complete. You can find these by clicking here for the link or by going to our website at www.wwauckland.co.nz , clicking on Resources and Annual Questionnaire. Please note that you will need to allow between 15 minutes and an hour to complete the form.

Our client profile this month is Cause+FX – check out their website to learn more about specialized visual effects.

Important changes from 1 April 2012 for employers

The 1st April is a busy time for payroll and in 2012 it will see some major changes happening.

Changes to the Student Loan scheme.
Changes to SL tax codes.
Additional repayment codes that can be used (SLCIR).

Overseas Pensions and Life Insurance

Do you have a foreign Superannuation fund or foreign life insurance policy?
If so you should advise us of this when we prepare your tax return. New Zealand Foreign Investment Fund rules may mean that these give rise to taxable income in New Zealand regardless of whether amounts have been paid to you.

Are you thinking of transferring an overseas pension to New Zealand?
There are many advertisements advocating this currently appearing in the Herald. Please contact us prior to making any transfers. In some instances transferring your pension to New Zealand may result in it being deemed taxable income. We will need to determine the type of pension you are transferring and from which country to ascertain whether the transfer will trigger a tax liability.

Time to Consider Declaring Dividends and Clearing the Imputation Credit Account

When is a good time to clear my Imputation Credit Balance?

The imputation credit regime was originally introduced to eliminate double taxation on company profits. The regime allows companies to attach imputation credits (taxes paid) to dividends declared. Dividends will normally have imputation credits and resident withholding tax (RWT) deducted from them. The rate of RWT payable is either 3% or 5% and the imputation credits attached are either 30% or 28%. Therefore, any dividend declared pays tax at 33%.

Client Profile

Cause+FX is an artist owned and operated visual effects company based in Auckland New Zealand. Paul Dickson, Greg Flannagan and our small team have a love for digital artistry and a commitment to creative and effective solutions offering expertise and passion to deliver specialized visual effects for your project on time and on budget.

From the dynamic flare of the commercial world to the methodical precision of episodic TV series and feature films, we have the post production experience to make your production extra special while having a laugh or two along the way.

To visit out website go to www.causefx.co.nz or to learn more about the services and rates available at Cause+FX contact us on:

+64 9 555 0660 - info@causefx.co.nz.