News > Our Newsletters > September 2008
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September 2008 |
Current rates: |
| Income to $9,500 15% |
| $9,5001 - $38,000 21% |
| $38,001 - $60,000 33% |
| $60,001 and over 39% |
New rates from 1 October 2008: |
| Income to $14,000 12.5% |
| $14,001 - $40,000 21% |
| $40,000 - $70,000 33% |
| $70,001 and over 39% |
New rates from 1 April 2010: |
| Income to $17,500 12.5% |
| $17,501 - $40,000 21% |
| $40,001 - $75,000 33% |
| $75,001 and over 39% |
New rates for 1 April 2011: |
| Income to $20,000 12.5% |
| $20,001 - $42,500 21.5% |
| $42,501 - $80,000 33% |
| $80,001 and over 39% |
Provisional tax changes
For individuals subject to the provisional tax regime, the current safe harbour "standard uplift" calculation method will remain the same, but the amount will reduce by a flat $730 to reflect the impact of the tax changes part way through the 2009 income year. The RIT will reduce by the same amount in determining the provisional tax liability in subsequent years. The multiple for the ratio method will change in the 2009 year, and taxpayers that estimate provisional tax will need to recalculate the estimate using the composite rate below.Employers will apply different PAYE rates. The effective rate for the year will the composite rates listed below.
| Income range | Composite tax rate applied |
| $0 - $9,500 | 13.75% |
| $9,5001 - $14,000 | 16.5% |
| $14,001 - $38,000 | 21% |
| $38,001 - $40,000 | 27% |
| $40,001 - $60,000 | 33% |
| $60,001 - $70,000 | 36% |
| $70,001 and higher | 39% |
PAYE taxpayers should check taxes paid on income for the 2009 year using the composite rates to determine whether taxes have been overpaid. That may occur where there is a bonus payment prior to 1 October 2008 and/or income earned is less in the second half of the year due to other circumstances. If PAYE has been overpaid then a Personal Tax Summary (PTS) should be requested from the IRD to reassess the tax and have the overpayment refunded.
FBT and SSCWT calculations will also need to change.
Business tax thresholds 
The budget also provides for significant increases to a range of business tax thresholds • increasing the PAYE once-a-month filing and payment threshold from $100,000 to $250,000 p.a.
• increasing the FBT annual return filing threshold from $100,000 to $250,000 of total PAYE payments
• increasing the provisional tax use-of-money interest safe harbour threshold from $35,000 to $50,000
• increasing the low value trading stock threshold from $5,000 to $10,000
• increasing the GST registration threshold from $40,000 to $50,000
• increasing the GST six-monthly return filing threshold from $250,000 of taxable supplies to $500,000
• allowing non-individuals, subject to certain thresholds, to return income tax for financial arrangements on a cash-accounting basis, and
• increasing the threshold for allowing financial arrangements to be accounted for on a straight line basis from $1.5 million to $1.85 million (based on the total level of financial arrangements).
PIE & RWT
Currently, there are no changes to the portfolio investor rates used by PIEs to calculate tax payable (which will stay at 19.5% and 30%) or the RWT rates, which will remain at 19.5%, 33% and 39%. The Government intends undertaking a more substantive review of these in consultation with the finance sector.2. WORKING FOR FAMILIES
From 1 October 2008, the Family Tax Credit rate and income-abatement threshold will increase to $36,827 ($35,000 in the 2008 year). Because the proposed threshold change is mid-way through the income year, a composite threshold of $35,914 will apply in the 2009 income year.
3. CHILD SUPPORT LEVIES 2008 
From 1 April 2008 the child support rates will change as outlined below.
- the variable standard-cost component has increased to $3.00 per hour per child ($2.90 in the 2008 year); and
- the administration and record-keeping fixed standard-cost component has increased to $293.00 pa, for a full 52 weeks of childcare services provided ($283.00 in the 2008 year).
- For childcare providers who have a standard 31 March balance date, the new amounts apply for the period from 1 April 2007 to 31 March 2008.
4. RECENT PENALTIES CHANGES
The Taxation (Business Taxation and Remedial Matters) Act 2007 provides for a number of changes to the compliance provisions and shortfall penalties charged on tax positions taken on or after 1 April 2008.
These changes are outlined below.
Late-payment penalty grace period:
From 1 April 2008, the Inland Revenue Department will notify taxpayers the first time their payment is late, rather than imposing an immediate late-payment penalty. The "grace period" allows for the initial late-payment penalty to be temporarily delayed, giving taxpayers a chance to catch up. The "grace period" only applies to penalties. Interest will still apply. All taxpayers will start with a clean slate. On an ongoing basis, all taxpayers who have a good payment record for the previous two years may receive the "grace period", if required. Employer monthly schedule (EMS) late-payment penalty: 
A new penalty has been introduced for EMS filers who do not pay their tax by the due date. Taxpayers will be given notice that their payment is due before the penalty is applied. The penalty is 10% of the unpaid tax due (discounted 5% if paid within 30 days of the notice date). The penalty is applied every month, until the full amount is paid (up to a maximum of 150%). Using a tax agent:
Taxpayers who have relied on the advice of a tax agent will usually be considered to have exercised reasonable care. The Act now prescribes the circumstances in which a shortfall penalty for not taking reasonable care can be imposed when taxpayers have used a tax agent.Associated persons:
When a taxpayer's return is reassessed resulting in a matching credit adjustment in an associated taxpayer's return for the same tax type and in the same return period, the Commissioner may, for the purpose of imposing a shortfall penalty, treat an amount up to the refund or increased refund of tax as though it were paid by the first taxpayer, and so reduce the taxpayer's tax shortfall. That allows the Commissioner to treat return periods that overlap as the same return period for associated persons, allowing a tax refund to be used to reduce an associated person's tax shortfall. This discretion will not apply when the tax shortfall arises as the result of an abusive tax position or involves evasion — for example, when a taxpayer deliberately claims an input tax credit in the wrong entity to claim the refund early.Shortfall penalties:
For tax positions taken on or after 1 April 2008, GST and withholding taxes have been removed from the scope of the unacceptable tax position shortfall penalty, so that the penalty will only apply to tax positions relating to income tax. The "abusive tax position" penalty minimum threshold has been removed with effect from 1 April 2008 (previously $20,000). From 1 April 2008, if a taxpayer has fixed their tax issue within four years of it occurring, temporary shortfall penalties may be reduced by 75%, depending on taxpayer circumstances. For tax positions taken on or after 17 May 2007, the shortfall penalty for not taking reasonable care or taking an unacceptable tax position will not be imposed when a tax shortfall is voluntarily disclosed before notification of a pending tax audit or investigation.GST late-filing penalties:
From 1 April 2008, a registered person who files their GST return late may incur a late-filing penalty. However, before a penalty is charged, the person's past filing history will be taken into account. The Inland Revenue Department will send a letter to a registered person who does not file their return on time reminding them that their return is overdue and advise them of how the Department can help if they are having problems.If a subsequent GST return is not filed within 12 months of the reminder notice being issued, a late-filing penalty will be charged and the person will be notified.
If a late-filing penalty is payable, the amount of the penalty is $50 for a person on the payments basis or $250 for a person on the invoice or hybrid basis.
Registered persons may wish to consider filing their GST returns online through the Inland Revenue Department website to ensure their return reaches the Department on time.
5. ACC LEVIES FOR 2008 
ACC levies have been set for the 2008 year as follows.
Earners' levy payable by self-employed persons and other earners
- The maximum amount of earnings in a tax year of a self-employed person on which the levy is payable has increased to $99,817pa ($96,619pa in the 2007 year). The maximum amount of earnings of any other earner in a tax year on which an earners' levy is payable has increased to $102,922pa ($99,817pa in the 2007 year).
- The level of earnings on which an earners' levy is payable by a self-employed person who works for more than 30 hours per week, whether or not as an employee, has been increased. For those aged 18 or over, the amount is $21,320pa, and, for those aged 17 or under, it is $17,056pa.
- There no age-related discount from 1 April 2008. Previously, a self-employed person who entered into an agreement with the Accident Compensation Corporation was entitled to an age-related discount for the purchase weekly compensation.
- A self-employed person is not liable to pay an amount invoiced in relation to the earners' levy if the amount does not exceed $40pa. In addition, a self-employed person is not liable to pay any penalties for non-payment of an amount invoiced in relation to the earners' levy if the amount does not exceed $40pa.
Residual Claims Account
- The maximum amount of earnings on which a residual claims levy is payable has increased to $99,817pa ($96,619pa in the 2007 year).
- The amount of earnings per tax (for the purposes of calculating the minimum levy payable in relation to self-employed persons who work, on average, for more than 30 hours per week) has increased to $21,320pa for those aged 18 or over on the last day of the 2008 tax year or any later tax year ($19,760pa in the 2007 year), and to $17,056pa for those under 18 on the last day of the 2008 tax year or any later tax year ($15,808pa in the 2007 year).
- An employer is not liable to pay an amount invoiced in relation to the residual claims levy if the amount does not exceed $20pa. Similarly, a self-employed person is not liable to pay an amount invoiced in relation to the residual claims levy if the amount does not exceed $40pa. Neither an employer nor a self-employed person is liable to pay any penalties for non-payment of these amounts.
6. FBT PRESCRIBED RATE ON LOW-INTEREST LOANS
For the quarter beginning 1 April 2008, the prescribed rate used to calculate FBT on low-interest employment-related loans is 10.57%. This is an increase from the previous quarter rate, which was 10.37%.
7. SPECIFIED LIVESTOCK DETERMINATIONS 2008
On 26 May 2008, the Inland Revenue Department released "The National Average
Market Values of Specified Livestock Determination, 2008". The determination applies to specified livestock on hand at the end of the 2008 tax year.8. NEW COMPANY TAX RATE
The reduction in the company tax rate, from 33% to 30%, takes effect from the start of the 2008/09 income year (1 April 2008 for March year balance dates & the first day of the new year for alternative balance dates) for all entities taxed at the company rate.
The company tax rate applies to all:
- registered companies
- cooperative companies
- life insurance companies
- incorporated societies
- portfolio investment entities (PIEs) that are not portfolio tax rate entities
- unit trusts
- statutory producer boards
- group investment funds (except for certain income).
The change of the company tax rate affects the calculation of income tax (including provisional tax), allocation and use of imputation and foreign dividend payment (FDP) credits, and other rates, formulas and account balances linked to the company tax rate, such as qualifying company election tax (QCET), conduit, branch equivalent tax account (BETA), and carrying forward of excess imputation credits.
Some savings vehicles (eg widely held superannuation funds) will also pay tax at 30%, not the trustee tax rate of 33%.
Allocation and Use of Imputation FDP Credits
The maximum ratio of imputation/foreign dividend payment (FDP) credits reduces to 30:70 (i.e. you can now attach a maximum of $30 of credits to every $70 of dividends). The ratio was 33:67 for prior years. The key transitional rules are:- A rate changeover window, expiring on 31 March 2010, will prevent the rate change disadvantaging companies or their shareholders, by allowing companies to use up their 33% tax credits.
- Companies that do this will need to track the relevant tax rate for entries in their ICA/FDP account. If they over-allocate credits during the 2009 or 2010 tax years, penalties will also be affected by the special transitional rules.
- Imputation and FDP credits attached to dividends received by a company in the window can only be claimed as a tax credit for up to 30% of income. The full amount is creditable to the relevant imputation or FDP account.
9. LIMITED PARTNERSHIPS AND CHANGES TO PARTNERSHIP TAX RULES
The Limited Partnerships Act 2008 came into force on 2 May 2008. 
Limited partnerships are a form of partnership involving general partners who are liable for all of the debts and liabilities of the partnership, and limited partners, who are only liable to the extent of their contribution to the partnership. Limited partnerships are an internationally preferred structure for investing in venture capital. We are still considering the opportunities for limited partnerships in the New Zealand market, and will take a conservative approach in promoting the structure until those are better understood. The attraction of the special partnership is the limited liability and the ability for investors to enter and exit an investment in a similar way to buying & selling shares in a company, and to have the flexibility of administration of a partnership.
Changes to the partnership tax rules
There are new tax rules for limited partnerships and an update of tax rules relating to general partnerships and those are outlined below.
- Income and expenses will flow through to partners on the basis of their partnership agreement. However, to prevent streaming, income, expenditure and other items from different sources will generally be allocated to the partners in the same proportion.
- Transactions between partners and partnerships (except salary payments) are treated as being at arm's length.
- Partners are required to account for tax on their exit from a partnership in certain circumstances, to address revenue concerns. There are, however, several exceptions to this requirement. A new exception is that partners will generally not need to account for tax on exit if their profit is $50,000 or less. They will also not need to comply with this requirement in relation to:
- trading stock, if the trading partnership has a turnover of less than $3 million;
- certain types of depreciable tangible property, if the historical cost of any depreciable tangible asset held by the partnership is less than $200,000
- certain types of financial arrangements, if the financial arrangement has been entered into as a necessary and incidental purpose of the business (for example, a loan to provide working capital for the business)and
- certain excepted financial arrangements.
- When an exiting partner accounts for tax, the partnership and the incoming partner must take on a cost base in the partnership's assets and liabilities. The cost base must be equal to the amount that the exiting partner was deemed to dispose of them for, i accordance with the disposal provisions.
- If an exiting partner has performed a revenue account adjustment on livestock, the incoming partner will be allowed to deduct the amount of that adjustment on a straight-line basis over a five-year period. This will reduce any compliance costs, as separatetax books for livestock will not need to be maintained.
- The new entry and exit rules will be elective for partnerships of five or fewer partners provided no partner has limited liability for the debts of the partnership business.
In addition, a limited partner's loss will be restricted in any year to the limited partner's level of economic loss.
10. CHARITIES NOT REGISTERED WITH THE CHARITIES COMMISSION - LOSS OF INCOME TAX EXEMPTION 
Registration with the Charities Commission is voluntary but, from 1 July 2008, a charity will need to be registered to qualify for income tax and gift-duty exemptions.
A charity that is currently exempt from income tax must register with the Charities Commission by 1 July 2008 in order to retain their income tax exemptions. Failure to do so will mean the charity will lose exempt status from that date until the date that they become registered.
Income derived after 1 July 2008 will only qualify for the income tax exemptions if the charity is registered. Any income derived after 1 July 2008 but before the date the charity is registered will be liable for income tax.
If there is a deficiency in the information provided to the Charities Commission, registration will not be effective until the date that all information has been provided, and if that date is after 1 July 2008, the income tax exemption will only apply from the date they receive the missing information.
11. TAX-FREE STATUS RETAINED FOR TERTIARY INSTITUTIONS, SCHOOLS, AND CERTAIN NON- RESIDENT CHARITIES
The Government announced on 14 May 2008 that it will amend several tax Acts to ensure that state-funded tertiary education institutions, state and state-integrated schools, and certain non-resident charities do not have to register with the Charities Commissioner to retain their tax-exempt status.
The amendments will also introduce a transitional measure, to be used in limited circumstances, to protect the tax-exempt status of organisations that have difficulty in completing their registration applications with the Charities Commission before the 30 June 2008 deadline.
12. CHARITIES AND TAX CLARIFIED
The availability of tax rebates for making charitable donations does not depend solely on whether a charitable organisation has registered with the Charities Commission. Individuals that make charitable donations to organisations that are not registered with the Charities Commission can still claim tax rebates for their donations if the organisations involved have Inland Revenue Department-approved donee status. Companies and Maori authorities can also claim a deduction for donations to an organisation with donee status. Donee status is not affected by the Charities Act 2005. The Inland Revenue Department will continue to administer donee status.
Tax incentives for giving to charities and non-profit organisations
The following changes to the tax treatment of donations to charities commenced 1 April 2008:
- removal of the individual rebate threshold limit of $1,890;
- removal of the public company deduction limit of 5% of the entity's net income;
- removal of the Maori authority deduction limit of 5% of the entity's net income; and
- extension of the company deduction provision to close companies not listed on a recognised stock exchange.
Individuals qualify for a rebate of 33% for qualifying donations made after 1 April 2008 to a maximum of the amount of taxable income derived by the individual in that year. Companies can claim a deduction to the extent that the donations do not exceed the company's taxable income for the year. There is clearly a significant advantage in the individual claiming the rebate at the flat rebate rate of 33% to effectively refund tax paid at the lower rate (19.5% at taxable income of less than $38,000) and for the tax differential between flat rebate rate and the company tax rate of 30% from 1 April 2008.
13. DIVERTING INCOME
The IRD has recently restated its current view on how the law should be applied to arrangements involving taxpayers that divert some or all of personal services income to an associated entity, such as a trading trust or a company, to take advantage of the lower marginal income tax rates payable by that entity and/or by family members as beneficiaries or shareholders of that entity.
An important part of the scheme of the income tax legislation is that income substantially generated by the direct personal skills, experience or labour of an individual is derived by and, therefore, should be subject to tax in the hands of that individual.
It is also noted that, in many cases, taxpayers enter into such arrangements to also benefit from reduced child support liabilities or reduced student loan repayment obligations. In some cases, taxpayers are structuring their remuneration at a level that will allow them access (or greater access) to other non-income tax benefits that rely on income calculated for tax purposes, such as Working for Families Tax Credits or other income-tested benefits, for example, student allowances.
To determine whether or not there has been tax-avoidance, the IRD look at all aspects of such arrangements, including whether or not the level of remuneration paid by the employing entity to the taxpayer is commercially realistic in any given income year. The Inland Revenue Department acknowledges that there are legitimate business reasons for using entities such as trusts or companies in many cases, and, therefore, the mere use of alternative business structures will not, on its own, amount to a tax-avoidance arrangement. The Inland Revenue Department will review each case on its own facts and, additionally, cases are independently reviewed before a final decision is made.
This announcement should not be a surprise to anybody. IRD audit activity where taxpayers have restructured to lower their personal income is nothing new, and has been an area of the IRD's focus for the past several years, especially in the case of trading trusts. The novel aspect of the announcement is the explicit reference to child support liabilities and the like.
Until now, the main focus of the IRD has been medical professionals, and practice-wide audits where the IRD has come across certain law or accounting firms that have been advising their clients to restructure (particularly into trading trusts) to gain tax advantages.
14. TAX HAVEN HOLDING STRUCTURES
The IRD recently announced that it is looking at arrangements under which New Zealand residents use legal structures established under the laws of Liechtenstein to attempt to avoid or evade New Zealand tax obligations.
The investigations could extend to the misuse of tax haven structures in other countries. The use of such a structure does not, in itself, amount to tax avoidance or evasion. Rather, it is the use of such a structure, or a similar type of structure, for the purpose of evading a New Zealand tax liability that is of concern to the Inland Revenue Department.
15. LAQCS AND FAMILY HOMES 
The IRD is undertaking a review process of companies with LAQC status that own residential rentals and rents homes to shareholders, directors or associated parties. The Department is sending a letter to those affected that outlines their concerns, and the letter suggests that professional tax advice should be sought about the taxpayer's situation.
We expect, based on the current practice of the IRD, that it will also send a proposed adjustment form with the letter. This is a form used to correct an incorrect tax position by way of voluntary disclosure.
It is not exactly clear how the IRD would obtain a definitive list of those who should be issued with such a letter. In all likelihood, many who should not receive letters may receive them, and those who should, may not.
If you have a property owning LAQC it would be wise to check that the structure continues to be technically sound and should not trigger issues for the IRD.
16. IRD AUDITS PROPERTY SALES
The Government signaled in the 2007 Budget that the IRD was getting further resources to help enforce the existing law relating to property sales.
In the meantime we understand the IRD has been visiting Councils and the like gathering information. Letters are being sent to taxpayers who have sold properties over the years. By the tone of the letter the IRD is not 100% certain of the background to the sales.
The letter starts off by saying:
"The Department has information which indicates that income may have been omitted from your tax returns."
No details of the property or properties in question are given. The letter then goes on to invite a voluntary disclosure.
Responses to such a letter need to be carefully considered and it is vital that taxpayers are aware of their obligations and fully understand the tax laws as they relate to property sales. The first response is the most important. Not all property sales are taxable.
17. CHANGES TO PROPERTY INVESTMENTS - TAX
With the collapse of certain property investment schemes, affected taxpayers need to consider the tax implications of any action they may contemplate or take relating to their investment. While their immediate reaction may be to do anything to try to mitigate their potential losses or protect their investment, the action they take could have unexpected tax consequences.
Matters that an investor should consider include:
GST Issues
- Often an investment property such as an apartment may have been bought for use in a taxable activity such as leasing the property to, for example, a hotel operator or a commercial accommodation provider. Or the property may have been purchased with a lease already in place and may have been GST zero-rated. If the lease terminates and the investor changes the use of the property to GST exempt residential accommodation, there may be a GST liability arising on that change in use. Or the investor may have ceased their taxable activity altogether and be required to account for GST on deregistration. The investor could face an obligation to account for GST of 1/9th of the market value of the property at the time when they are already under financial pressure. There may be scope to pay 1/9th of the original cost under a change in use. If the property is sold there maybe GST liability if the sale is not eligible for zero-rating.
Tax Issues
- If the property is owned by a loss attributing qualifying company, which is quite common to enable the shareholders to get the benefit of the losses, there maybe
tax implications if the rental ceases and the shareholder moves into the property.
- If a rental activity ceases, this maybe deemed disposal and an income tax liability under the depreciation recovery rules, if the market value (excluding the land) exceeds the cost.
- If the property was acquired for resale, any gain or loss on sale may require disclosure for tax purposes.
- If the investor has borrowed funds but is fully or partly released from a repayment obligation, there may be tax consequences under the financial arrangements rules.
- Legal/accounting and other professional costs incurred in trying to protect or recover their investment may be capital expenditure and therefore not tax deductible.
- Compensation or damages claims may be taxable.
- If the rental income ceases, expenses and interest on residual loan balances may not be deductible.
Taxpayers should get advice on how they may be affected by any action to be taken to avoid unexpected tax consequences.
18. OBLIGATIONS OF RETIRING PARTNERS AND TRUSTEES 
An important responsibility for retired partners was stressed by the High Court in a recent case Wood & Anor v Fresher Foods Ltd. The responsibility being that a partner may remain personally liable to creditors even though they had retired from their partnership.
It was found that if a partner was retiring from a partnership they needed to provide sufficient notice of their retirement to all creditors of the partnership. If they don't provide sufficient notice and the partnership fails to meet its obligations to any of its creditors, then those creditors would be entitled to seek repayment of that debt from the retired partner.
In that case it was argued, by the retired partner (Wood), that they had informed the creditors (Fresher Foods Limited) that they were ceasing work with the partnership. However, the Court found that this did not provide sufficient notice to the creditor that the retired partner was actually retiring from the partnership.
The Court also held that there was no onus on the creditor to prove that the retired partner was still an "apparent" member of the partnership. The creditor only needs to prove that they did not receive evidence from the partner that they had retired from the partnership.
This case also provides a timely reminder for trustees. They likewise must give sufficient notice to creditors of their retirement from a trust. Otherwise they may face the personal liability for debts incurred after their involvement in the trust has ceased.
It should also be noted that a trustee must provide notice of their retirement to the IRD. If a trustee fails to give sufficient notice to the IRD, they could remain personally liable for any unpaid GST or other taxes such as PAYE owed by the trust.
19. INCOME SPLITTING FOR FAMILIES WITH CHILDREN 
On 27 April 2008, the Government released a discussion document for public comment on the idea of allowing families with children to split their income for tax purposes so as to reduce the amount of income tax they pay.
The discussion document limits its consideration of income-splitting to families with children, even though several countries allow income-splitting for all couples. There are two reasons for that limitation. First, supporting families with children is one of the main priorities of the Government. Secondly, the fiscal cost of allowing income-splitting for all couples would be very high.
Those who would gain most would be families in which one parent earned $120,000 or more a year and the other had no income. If its income were split on a 50/50 basis, that family could reduce its annual income tax by nearly $9,000.
The discussion document notes that income-splitting would be very expensive to implement and administer irrespective of the specific design. However, it might be possible to implement it through the current Working for Families tax credits system, which would restrict costs to an extent.
20. INCOME TAX ACT 2007 IN FORCE
The Income Tax Act 2007 came into force on 1 April 2008 and first applies to income derived in the 2008/09 income year. The very large 2007 Act (nearly 3,000 pages long) incorporates an historic 15-year rewrite of the Income Tax Act.
21. ELECTION TO FILE ANNUAL FBT RETURNS
The option to file an annual FBT returns is only available to employers with gross annual tax deductions (not including earner's levy) and SSCWT deductions of $100,000 or less (2008 year budget increases the threshold to $250,000). Employers have until 30 June 2008 to elect to file annual returns for the year ended 31 March 2009. If the election is not made by that date the returns will need to be filed quarterly during the 2009 year.
22. PROVISIONAL TAX NOTICES 
A reminder to clients that the first instalment of 2009 provisional tax for taxpayers with March balance dates is due for payment on 28 August 2008. We will not send notices out for payment until 28 July 2008. In previous years we have sent out the notices on 7 June for payment on 7 July, and we have had a number of inquiries this year on the whereabouts of the June notices. If any client is still uncertain about the changes in dates please contact us.
For those taxpayers that have elected into the ratio method, the first instalment of 2009 provisional tax is due for payment on 28 June 2008. Those taxpayers will have received the new GST forms with the provisional tax calculation included on that form. We will not send notices for payment to those taxpayers this year but if those clients need assistance with the completion of the form we ask that they contact us.
23. NEWS ABOUT THE OFFICE 
Since the last newsletter we have had a few changes to the staff and continue to increase our capacity.
In the past few months the following people have joined the accounting team:
- Cynthia Gounder (31 March) – recently married (12/07) and emigrated from Fiji.
- Pauline Tane (21 April) – recently relocated from Taumarunui CA practice.
- Anthea Piper (30 June) – relocating within Tauranga from a nearby CA practice.
While we welcome these additions to the team we have had to farewell Adam Jolly who has moved on to a local firm dealing with liquidations and receiverships.
