-
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.
“It’s Tax Time!”
Retailers regularly lay claim to significant calendar dates for promotional purposes. Every year, Easter seems to start earlier.
This year’s Easter advertising is competing with slogans like “Making tax time easy for you.” This refers to 31 March, which marks the end of the tax year for the majority of taxpayers. For businesses, it ties in with the end of the accounting year - an annual cut-off date for measuring the financial performance of the business and determining its financial position.
Generally, the accounting rules and the tax rules are fairly similar and share the same broad measurement concepts. One of these is “accrual accounting”. It aims to record related income and expenses within the same measurement period. For example, if you buy something but haven’t yet used it up to earn income, then the cost is carried forward to the next period so it can be matched against the future income.
The Income Tax Act achieves this with a handful of sections called the “matching rules”. It deals with things like trading stock and prepayments. That’s why an end of year stock take is important: the cost of any stock unsold at year end must be added back, so it can be carried forward for deduction in a future period to match the income that arises when the stock is actually sold.
Retail advertising generally encourages a big end of year spend up to maximise the deductions in the current year. The main advantage of this is a timing one: a tax deduction taken today is worth more (in terms of time value of money) than a tax deduction taken tomorrow.
Inland Revenue has discretion to ignore the matching concept for certain types of pre-paid expenses. The discretion is often limited by a dollar amount and a period of time. For example, a prepayment for travel costs can be claimed in the year of payment provided the amount accrued does not exceed $14,000 and the travel is taken within six months of balance date. The same applies to pre-paid advertising costs. There is an unlimited allowance for stationery costs (the focus of some current advertising).
Capital expenditure (the buying of assets) is different because they are depreciated, so there’s no big up-front claim for the cost of the asset. In the year of purchase, the deduction that can be claimed is pro-rated, based on the number of months the asset was owned during the year. For example, if a business bought a new $1,000 computer in March, the deductible amount for the March year would only be $33 ($1,000 x 40% x 1/12).
1 April also traditionally marks the start date for previously announced tax changes. This year will see the following changes take effect:
- The minimum KiwiSaver employer and employee contribution rate increases from 2% to 3%.
- The student loan repayment rate increases from 10% to 12% (over the repayment threshold of $19,084) and the early repayment bonus is abolished.
- The childcare and housekeeper tax rebate is abolished.
- The child tax credit is abolished – and replaced by a limited child income exemption.
- Inland Revenue has advised that 31 March 2013 is the last date for concessionary treatment of taxpayers who make Penny & Hooper related voluntary disclosures. (That case involved surgeons who used a company and trust structure to limit their personal income from services provided).
- Lease inducement and lease surrender payments will, generally, become taxable to the recipient and deductible to the payer.
Although the end of the tax year is unlikely to be a cause for celebration, it is an important date in the business calendar that should be considered.
Further enquiries, please contact:
Geordie Hooft
Partner, Tax
Grant Thornton New Zealand Ltd
T +64 (0)3 379 9580
E geordie.hooft@nz.gt.com