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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.
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Capital markets
You need corporate finance specialists experienced in international capital markets on your side if you’re buying or selling financial securities.
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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.
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Corporate insolvency
Our corporate investigation and recovery teams can help you manage insolvency situations and facilitate the best outcome.
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Debt advisory
An optimal funding structure for your organisation presents unprecedented opportunities, but achieving this can be difficult without a trusted advisor.
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Expert witness
Our expert witnesses analyse, interpret, summarise and present complex financial and business-related issues which are understandable and properly supported.
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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.
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Forensic and investigation services
We provide investigative accounting and litigation support services for commercial, matrimonial, criminal, business valuation and insurance disputes.
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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.
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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.
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Mergers and acquisitions
Grant Thornton provides strategic and execution support for mergers, acquisitions, sales and fundraising.
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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.
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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.
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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
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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.
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Virtual asset advisory
Helping you navigate the world of virtual currencies and decentralised financial systems.
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Corporate tax
Grant Thornton can identify tax issues, risks and opportunities in your organisation and implement strategies to improve your bottom line.
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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
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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.
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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
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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.
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Research and Development
R&D tax incentives are often underused and misunderstood – is your business maximising opportunities for making claims?
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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.
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Tax governance
Mitigate tax risks and implement best practice governance that will stand up to IRD scrutiny and audits.
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Transfer pricing
Tax authorities are demanding transparency in international arrangements. We businesses comply with regulations and use transfer pricing as a strategic planning tool.
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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
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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.
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Financial reporting advisory
Our financial reporting advisers have the expertise to help you deal with the constantly evolving regulatory environment.
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Business architecture
Our business architects help businesses with disruptive conditions, business expansion and competitive challenges; the deployment of your strategy is critical to success.
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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.
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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.
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IT advisory
Our hands on product experience, extensive functional knowledge and industry insights help clients solve complex IT and technology issues
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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
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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.
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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.
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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
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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
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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.
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Risk management
We understand that growing companies need to establish robust internal controls, and use information technology to effectively mitigate risk.
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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.
Budget 2012: A lesson from our neighbours
Last Tuesday, our neighbouring Government announced its 2012 Budget. There were a number of interesting changes which are important to reflect upon in the lead up to New Zealand’s 2012 Budget.
A lot of the provisions signalled in the Australian budget will ensure that residents on lower incomes will come out better off than they were.
There has been a significant increase in the tax-free threshold, from $6,001 to $18,201. However, the increase in this threshold is offset by a raise in tax rates, meaning that those with a taxable income of $80,000 or higher receive no benefit.
Several changes will also see non-residents who have invested in Australia (ie many New Zealanders) negatively affected. The Australian Government needs money and they plan to get it from the wealthy and foreigners.
There are three key changes that may affect us in New Zealand.
The first is a further reduction in living away from home allowances and benefits (LAFHAs). As most Kiwis go into Australia as temporary residents, this change will hit them hard. Housing and food costs will now either be taxable to the employee, or the employer if it is subject to fringe benefit tax (FBT). Until now, a New Zealander working temporarily in Australia could ask their employer to allow some of their salary, say $52,000 of a $232,000 salary, as a housing expense (not unreasonable at say $1,000 per week for a Sydney rental property). That $52,000 would have been tax exempt which, under Australian rates, would give the employee an extra $23,400 a year. The tightening of this budget has seen this benefit canned for temporary residents.
This change will affect many New Zealand employers that want to send employees to Australia on secondment opportunities.
It will also severely restrict the Australian employer’s ability to attract the right people as LAFHAs have been a cost effective way of offering New Zealand employees ‘tax packaging’ arrangements, to offset the very high cost of living in Australia. Australian employers with significant numbers of expatriates in Australia or large secondment programmes will be the most heavily affected. These businesses may find they need to consider downsizing their programmes or even look to move part of their operations offshore.
These changes are intended to apply from 1 July 2012 to any arrangements entered into post-Budget night. The small piece of good news is that existing arrangements can run for another two years, with the current treatment being grandfathered until 1 July 2014.
The Australian Government has also increased the personal income tax rates and thresholds that apply to non-residents’ Australian income ‘to better align with the rates and thresholds that apply to residents’.
From 1 July 2012, the first two marginal tax rate thresholds will be merged into a single threshold. The marginal rate for this threshold will align with the second marginal tax rate for residents (32.5%) and will apply to all taxable income below $80,000. From 1 July 2015, the same marginal rate will again rise from 32.5% to 33%. For an income of $75,000 per year this equates to an additional tax hit of $2,245 in 2012/13 compared with 2011/12.
In addition to this, the Government has removed the 50% capital gains tax (CGT) discount for non-residents on any capital gains accrued after 7.30pm (AEST) on 8 May 2012.
Many Kiwis with rental properties in areas of Australia, such as the Gold Coast, will now pay more tax on their rental income under the increased tax rate, and have any capital gains made subject to the full CGT.
The best course of action for those property owners would be to get their property valued as soon as possible as the CGT discount will remain available for capital gains that accrued prior to Budget day. So if a property was bought for $300,000, and the value had climbed over the last few years so it was now worth $400,000, that $100,000 gain would still receive the 50% discount when the owner sells.
Looking at these changes, one might ask if the New Zealand Government should be introducing anything along the same lines. The Australian Government is clearly trying to placate local voters, and in our view most of these changes would not be suitable for the New Zealand Government to adopt.
The Government is in a difficult fiscal situation. They have no money and the huge cost of the Christchurch earthquakes to cover. Perhaps enforcing a CGT but limiting it to non-resident investors would be one way to aid this issue. However it wouldn’t do much for attracting that greatly desired international investment.
Further enquiries, please contact:
Murray Brewer
Partner, Tax
T +64 (0)9 308 2570
E Murray.Brewer@nz.gt.com