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Articles by John Rowe

End of year challenges for business owners

AUTHOR: John Rowe

POSTED: 13 December 2018

It’s that time of year where many businesses are finding things tight financially. Consequently, they can struggle to meet their tax obligations with IRD. If you find yourself in this situation you must be proactive. Simply, if you get to the point where IRD start chasing you, your options become more limited and you can end up paying more than you have to with penalties etc.

If you know you won’t be able to afford to pay tax or if you are already in arrears, let us know as soon as possible so we can help you.

If you need help with payment arrangements, talk to us first. We do not recommend approaching IRD yourself. Of course, if IRD contact you directly, refer them to us. It is far better to let experts like GRA deal with issues, than trying to negotiate with IRD yourself, as this can lead to further complications. In our experience, IRD’s staff are more concerned about collecting tax than informing you about your legal rights and options. Sadly, we are regularly seeing people misled into paying more than they have to.

Undeclared cash income
As you are probably aware, IRD have been running a campaign on cash receipts. With their new computer system, IRD are collecting and analysing all sorts of data. We are aware that recently they data mined transactions from EFTPOS service providers and statistically checked these back to various business types. We have seen a couple of new clients who have been caught in this audit sweep. The upshot of this is that you need to be compliant!

Planning ahead
To avoid getting into strife with IRD in the first place, you need to manage your business, especially your cash flow, and plan ahead. I will be running a seminar on 26 February where I will talk about what you need to know for the upcoming end of this financial year and being prepared as we head into the new one. I will also discuss upcoming tax changes including loss ring-fencing, and IRD audit activity. Murray Fulton from Advantage business is also presenting, and he will show you how to move your business from where it is now, to where you want it to be. We would love to see you there.

Please contact us if you need help with any of the issues raised in this blog – and the sooner you do so the better. We will discuss your affairs in strictest confidence and work with you to find the best solution. You can reach us on 09 522 7955, [email protected] or via our website.

In the meantime, I wish you all the best for the holiday season.

Request a Meeting

John Rowe
Retired Partner, Consultant to GRA

09 522-7955

© Gilligan Rowe & Associates LP

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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

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Testimonials

This letter is to express my appreciation for the assistance and encouragement of both Anthony Lipscombe and particularly John Heaslip over the last financial year. The period since activating my trading trust has been one of considerable stress, as well as personal development, as I embarked on this as a relative business neophyte with virtually no awareness of the contemporary requirements of running a business, particularly the financial records aspect. During much of this period I have therefore felt considerable out of my depth. However I have been lucky enough to have had the benefit of the advice and support of John Heaslip in rationalizing what was a fairly chaotic set of records of the first year property trading. I am able to say that John in particular, has been unstinting in his attention to my needs and has done so in a manner which has never alluded to my extremely rudimentary grasp of managing a business, or even of being unable to set out a spread sheet properly. The result of the above guidance is that now, although my trading trust would still not be able to operate without the advice of GRA, I do least feel a sense of satisfaction that I have got to my present point without major disaster and that my property trust does now have some kind of firmer basis for any future activities - Name withheld by request

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Gilligan Rowe and Associates is a chartered accounting firm specialising in property, asset planning, legal structures, taxation and compliance.

We help new, small and medium property investors become long-term successful investors through our education programmes and property portfolio planning advice. With our deep knowledge and experience, we have assisted hundreds of clients build wealth through property investment.

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