-
Business valuations
We offer expert valuation advice in transactions, regulatory and administrative matters, and matters subject to dispute – valuing businesses, shares and intangible assets in a wide range of industries.
-
Capital markets
You need corporate finance specialists experienced in international capital markets on your side if you’re buying or selling financial securities.
-
Complex and international services
Our experience of multi-jurisdictional insolvencies coupled with our international reputation allows us to deliver the best possible outcome for all stakeholders.
-
Corporate insolvency
Our corporate investigation and recovery teams can help you manage insolvency situations and facilitate the best outcome.
-
Debt advisory
An optimal funding structure for your organisation presents unprecedented opportunities, but achieving this can be difficult without a trusted advisor.
-
Expert witness
Our expert witnesses analyse, interpret, summarise and present complex financial and business-related issues which are understandable and properly supported.
-
Financial models
A sound financial model will help you understand the impact of your decisions before you make them. Talk to us about our user-friendly models.
-
Forensic and investigation services
We provide investigative accounting and litigation support services for commercial, matrimonial, criminal, business valuation and insurance disputes.
-
Independent business review
Is your business viable? Will it remain viable in the future? A thorough independent business review can help your organisation answer these fundamental questions.
-
IT forensics
Effective ESI analysis is integral to the success of your business. Our IT forensics experts have the technical expertise to identify, preserve and interrogate electronic data.
-
Mergers and acquisitions
Grant Thornton provides strategic and execution support for mergers, acquisitions, sales and fundraising.
-
Raising finance
Raising finance - funders value partners who can deliver a robust financial model, a sound business strategy and rigorous planning. We can guide you through the challenges that these transactions can pose and help you build a foundation for long term success once the deal is done.
-
Relationship property services
Grant Thornton offers high quality independent advice on the many financial issues associated with relationship property from considering an individual financial issue to all aspects of a complex settlement.
-
Restructuring and turnaround
Grant Thornton’s restructuring and turnaround service capabilities include cash flow, liquidity management and forecasting; crisis and interim management; financial advisory services to companies and parties in transition and distress
-
Transaction advisory
Our depth of market knowledge will steer you through the transaction process. Grant Thornton’s dynamic teams offer range of financial, commercial and operational expertise.
-
Virtual asset advisory
Helping you navigate the world of virtual currencies and decentralised financial systems.
-
Corporate tax
Grant Thornton can identify tax issues, risks and opportunities in your organisation and implement strategies to improve your bottom line.
-
Employment tax
Grant Thornton’s advisers can help you with PAYE (payroll tax), Kiwisaver, fringe benefits tax (FBT), student loans, global mobility services, international tax
-
Global mobility services
Our team can help expatriates and their employers deal with tax and employment matters both in New Zealand and overseas. With the correct planning advice, employee allowances and benefits may be structured to avoid double taxation and achieve tax savings.
-
GST
GST has the potential to become a minefield and can be expensive when it goes wrong. Our technical knowledge can help you minimise the negative impact of GST
-
International tax
International tax rules are undergoing their biggest change in a generation. Tax authorities around the world are increasingly vigilant, especially when it comes to global operations.
-
Research and Development
R&D tax incentives are often underused and misunderstood – is your business maximising opportunities for making claims?
-
Tax compliance
Our advisers help clients manage the critical issue of compliance across accountancy regulations, corporation law and tax. We also offer business and wealth advisory services, which means we can provide a seamless and tax-effective offering to our clients.
-
Tax governance
Mitigate tax risks and implement best practice governance that will stand up to IRD scrutiny and audits.
-
Transfer pricing
Tax authorities are demanding transparency in international arrangements. We businesses comply with regulations and use transfer pricing as a strategic planning tool.
-
Audit methodology
Our five step audit methodology offers a high quality service wherever you are in the world and includes planning, risk assessment, testing internal controls, substantive testing, and concluding and reporting
-
Audit technology
We apply our audit methodology with an integrated set of software tools known as the Voyager suite. Our technology has been developed to produce quality audits that are effective and efficient.
-
Financial reporting advisory
Our financial reporting advisers have the expertise to help you deal with the constantly evolving regulatory environment.
-
Business architecture
Our business architects help businesses with disruptive conditions, business expansion and competitive challenges; the deployment of your strategy is critical to success.
-
Cloud services
Leverage the cloud to keep your data safe, operate more efficiently, reduce costs and create a better experience for your employees and clients.
-
Internal audit
Our internal audits deliver independent assurance over key controls within your riskiest processes, proving what works and what doesn’t and recommending improvements.
-
IT advisory
Our hands on product experience, extensive functional knowledge and industry insights help clients solve complex IT and technology issues
-
IT privacy and security
IT privacy and security should support your business strategy. Our pragmatic approach focuses on reducing cyber security risks specific to your organisation
-
Payroll assurance
Our specialist payroll assurance team can conduct a review of your payroll system configuration and processes, and then help you and your team to implement any necessary recalculations.
-
PCI DSS
Our information security specialists are approved Qualified Security Assessors (QSAs) that have been qualified by the PCI Security Standards Council to independently assess merchants and service providers.
-
Process improvement
As your organisation grows in size and complexity, processes that were once enabling often become cumbersome and inefficient. To maintain growth, your business must remain flexible, agile and profitable
-
Procurement/supply chain
Procurement and supply chain inputs will often dominate your balance sheet and constantly evolve for organisations to remain competitive and meet changing customer requirements
-
Project assurance
Major programmes and projects expose you to significant financial and reputational risk throughout their life cycle. Don’t let these risks become a reality.
-
Risk management
We understand that growing companies need to establish robust internal controls, and use information technology to effectively mitigate risk.
-
Robotic process automation (RPA)
RPA is emerging as the most sophisticated form of automation used to help businesses become more agile and remain competitive in the face of today’s ongoing digital disruption.
Earlier this year, the Government released a proposal to incentivise R&D activity for New Zealand based companies via a new tax credit regime. Draft legislation has since been released, with the new R&D tax credits expected to be available from the tax year commencing 1 April 2019.
Increasing R&D activity in New Zealand through government incentives has been the subject of various initiatives over the years. The Labour Government previously introduced similar measures in 2008. These were only in operation for one year before being repealed by the subsequent National Government. Some years later, National introduced their own R&D ‘cash out’ incentive, aimed at start-ups with high R&D intensity activities. These latter credits continue to be available for now, but as is the nature of these politically charged incentives, indications are the existing ‘cash out’ system will soon change to align with the new R&D credit regime being introduced.
There is potential for taxpayers to receive significant benefits from this regime. Any business involved in or considering R&D activity seriously consider whether they can take advantage of the tax credit or cash out provisions to increase funding in their business or reduce their overall tax cost. With broader eligibility criteria, even businesses who have been unsuccessful in previous R&D tax credit claims may find new opportunities with this regime.
Key features
- R&D credits can be used to reduce a qualifying taxpayer’s tax liability by up to 15% of qualifying R&D expenditure (up to a $120million maximum)
- The credits will be available for use in the year the expenditure arises, or in future years (provided minimum shareholder continuity requirements are met)
- To qualify for the expenditure, a business must have a minimum spend of $50,000 on R&D. Lower R&D spends may qualify if the activity is undertaken through an approved research provider
- Tax credits will be refundable up to $255,000, with requirements mirroring the R&D tax-loss cash-out scheme already in place. This will be reviewed, with potential changes from 1 April 2020
- A person is excluded from the R&D tax credit regime if they receive a Callaghan Innovation Growth Grant for the relevant income year; the Growth Grants scheme will be phased out as the tax credit comes in
So who will qualify for the new R&D credits, and is it worth the time and effort to get them?
To receive the R&D tax credit, a business must meet tests under three categories: the person who is claiming the credit, the type of activity, and the type of expenditure. Importantly, business as usual expenditure will not qualify.
The key requirements are as follows.
- The person who is claiming the credit:
- performs core R&D activity in New Zealand, or a contractor performs a core activity on their behalf
- carries on business through a fixed establishment in New Zealand
- has R&D controlling rights over the research and development activities. This broadly means they either own the results of the R&D activities, are able to use the results without providing additional consideration, or a company in the person’s corporate group owns the results and the company is resident in a country with which New Zealand has a double tax agreement.
- The type of activity that qualifies as eligible R&D:
- is conducted using a scientific approach
- resolves scientific and technological uncertainty.
- The type of expenditure that qualifies as eligible R&D expenditure:
- includes employee salaries, expenditure on consumables and depreciation loss for assets used in R&D
- does not cover specific exclusions; some of these include routine software and computer maintenance, patenting and licensing costs, market research, management studies or activities relating to organisational design. In the 2008 R&D tax credit regime, it was estimated that that over 40% of claims related to software development – we are expecting this may also be a significant area for R&D tax credit claims this time around. Interestingly, expenditure on certain internal software development will qualify under this R&D tax credit regime - subject to a $3 million cap. Given the size of the cap, for many small to medium size businesses it may still be worth considering whether upcoming software expenditure could qualify.
Where to from here?
Now that draft legislation is available, we are predicting an increase in businesses wanting to assess their eligibility for the credits.
1 Start early and plan well
It pays to start planning early. It’s important to ensure that the claim is well framed and that the relevant details about the expenditure are recorded as they are incurred.
2 Take advice on eligibility
Given the detailed nature of the expected rules - at least in the first year - most businesses will need specific tax advice about whether a credit is available before making a claim. Not all expenditure of the types listed above will be included; availability will come down to the facts about the expenditure and the wider question of where ‘scientific or technological uncertainty’ lies.
A tax advisor will be able to let you know at an early stage if there are criteria which disqualify the expenditure, and they can work with you to refine the expenditure types to only those with a viable chance of a claim.
3 Collect data on the types of R&D activity in your business
There is an array of different R&D projects and activities that will qualify for the R&D tax incentive – the challenge for many businesses will be determining whether they have one of these. Some may have recurrent expenditure of the qualifying type, and identifying this early will have ongoing benefits.
Places to look will include in expenditure on experimental development, basic or applied research or knowledge acquisition. This will particularly be the case where the activity’s aim is to create or enhance:
- materials
- products or devices
- processes
- services.
The best approach is to summarise all types of expenditure which may fall into these categories so these can be fully considered.
