Market research, evidently, reveals that deal values fell 63% in 2023 in comparison to the preceding 5 years. This represents a reduction in activity in the mergers and acquisitions space broadly, to one third of what it was. Quite extraordinary really. It is reflective of business uncertainty spawned by a tepid geopolitical climate and lingering effects of the COVID caused downward spiral in business performance.
Choosing the Right Entity for Investments
Extension of the 39% tax rate to trusts prompts the question, what is the optimal choice of entity for your investments? It also brings very much into the spotlight the benefit of the 28% rate enjoyed by PIEs and tax exemption granted to PIEs for gains on NZ shares and shares listed on the ASX.
Issue 47 - MAY 2024
The trustee tax rate now matches the top 39% personal tax rate. In some cases, this may prompt a decision to wind up the trust, perhaps because the advantage offered by the trust no longer outweighs the increased tax costs and pronounced reporting and compliance steps.
Issue 45 - August 2023
Aren’t political wavering fascinating. First, David Parker commissions the high net wealth information gathering request as a platform to support a capital gains tax. Then the Greens Party press for this to be extended to a wealth tax. Chris Hipkins evinces his concern at voter reaction by dismissing both a capital gains tax and a wealth tax. Grant Robertson and James Shaw are left fuming and David Parker asks to be removed as Minister of Revenue. Fascinating.
Issue 44 - March 2023
The recent collapse of Silicon Valley Bank, the 18th largest bank in America, has provided another dent in financial markets, the Bond Market already in freefall as interest rates continue to climb. The Bank’s collapse rather highlights the need for a government guarantee on bank deposits and perhaps that will be one positive to emerge…
Issue 42 - August 2022
I recently attended a presentation given by a leading economist with one of the trading banks. It was a fascinating presentation, hence I thought I might share the thrust of it with you…
Trusts – Guidelines To What You Should and Should Not Do In Designing and Using a Trust
This paper sets out dos and don’ts for New Zealand domestic trusts, particularly family trusts that own the family home and/or the family operated business…
Issue 39 - November 2021
It is tempting to offer observations on the Auckland centric lockdown. I refrain from doing so in preference for discussing some important events in the corporate, tax and trust areas…
Issue 38 - August 2021
Observations from my desk are that the last few months have delivered increasing focus on the housing crisis and introduction of tax changes in response to it…
Issue 37 - March 2021
The Trusts Act has now passed into law, the Court of Appeal decision in the Mainzeal (Jenny Shipley director’s liability case) is now imminent, the Supreme Court has granted leave to appeal for Frucor in its avoidance case and Eric Watson has announced his intention to write a book….
Trusts Act 2019 - A Guide to Modernising your Trust
The advantages offered by trusts are far reduced from what they used to be. For many, there is no longer any need for a trust at all. I encourage you to assess whether…
Is your Trust still Needed
The advantages offered by trusts are far reduced from what they used to be. For many, there is no longer any need for a trust at all…
Is your Trust Effective Against claims on You?
If you regard the assets in your trust as being at your disposal in the same way as the balance in your bank account…
Trusts: The Danger of Accumulating Income
Tax planning for a trust will have failed where the trust has become a non-complying trust (NCT). That is because distributions from a NCT are taxed at 45% in the hands of a beneficiary unless an exception applies...
November 2017 - Tax Edition
Relief from tax penalties accompanies making voluntary disclosure. In most cases, making voluntary disclosure is both a sensible and a pragmatic solution to managing tax errors...
Essential Contract Terms…
Although every contract is unique there are some terms that should not be forgotten...
Trust Reforms
The Law Commission has issued its final report recommending wholesale changes to the Trustee Act. The report has been tabled in Parliament and is awaiting the Government's response.
Gifting - as easy as ABC now?
There will be gifts galore from 1 October 2011 and no gift duty! As easy as ABC? Not necessarily. The potential scale of gifts which might bemade following removal of gift duty leads to the possibility of big risks for professionals.