Liquidation Management

Budget 2024

Tax cuts modest

The tax reductions will deliver up to $51 a week for households on the average income.

They will take effect on 31 July 2024.

Current bracket New bracket Rate
To $14,000 To $15,600 10.5%
$14,001 to $48,000 $15,601 to $53,500 17.5%
$48,001 to $70,000 $53,501 to $78,100 30%
$70,001 to $180,000 $78,101 to $180,000 33%

The cost across the next four years is $2.57b a year on average.

This compares to $0.73b a year for the restoration of tax deductibility for landlords.

Eligible families will also receive a boost to childcare payments of up to $150 a fortnight.

Liquidation Sale
Laser Clinic - Whangarei
A well-established laser clinic for sale. The price is negotiable

https://www.facebook.com/marketplace/item/294643877018961

https://www.trademe.co.nz/Browse/Listing.aspx?id=4688039486&ed=true

Laser Clinic for Sale A well-established laser clinic for sale.

Take your tax obligations seriously

Take your tax as seriously as your trade The tax compliance challenge in construction

Tax will not go away unless you reach an agreement with IRD or liquidate your company
PAYE debts have serious implications of potential criminal prosecution action. You can’t be using PAYE money to run your business & manage your cashflow.
Running a company which it’s insolvent breaches your duties as a Director.
Please reach out to Tax Debt Management or Liquidation Management for advice & guidance

‘Cut excuses’: IRD’s warning to construction firms Those who don’t tackle their tax could face enforcement action and the possibility of prison time.

The holiday season is a wonderful time for us to remember the clients and friends who help our business and make our jobs a pleasure all year long. Our business would not be possible without your continued support.
We would like to take this opportunity to say thank you and send our best wishes to you and your families.
We want to wish you and your families a wonderful Christmas and Happy New Year, if you are travelling around our beautiful country or elsewhere in the world, stay safe and have the best time.
May your New Year be filled with all the success and happiness you deserve.
Please note that our offices will be closed from 5.00pm Thursday 21 December 2023 and will be reopening at 8.30am Tuesday 9 January 2024.
Should you have an urgent matter during this period please contact Imran Kamal on Mobile: 027 2480675.
Happy holidays!!
Imran Kamal & Liquidation Management Team

Restaurant for Sale - Kapiti

https://www.trademe.co.nz/Browse/Listing.aspx?id=4412335545

Restaurant for Sale - Palmerston North

https://www.trademe.co.nz/Browse/Listing.aspx?id=4429547385

Automotive and Mechanical Business to Sale - Matamata

https://www.trademe.co.nz/Browse/Listing.aspx?id=4429549517

Hair Dressing Business for Sale - Christchurch

https://www.trademe.co.nz/Browse/Listing.aspx?id=4429550254

Kitchen Joinery Factory - Timaru

https://www.trademe.co.nz/Browse/Listing.aspx?id=4419822482

Client testimonial - Tax Debt Client

“After IRD contacted us seeking immediate full repayment plan on a significant personal tax debt, we engaged TDM to manage and coordinate our tax repayment proposal to IRD.
I was managing my expectations, hoping for at least a minor write-off of the penalties as the best case scenario, however TDM achieved an enormous 85% write off. This speaks for itself. They are efficient and deliver results. It’s indescribable what a relief it was to receive that phone-call, and it has allowed me to start planning our financial goals again. I wouldn’t hesitate in recommending TDM to any individual or business seeking effective advice and solution to a financial problem. Thanks again to Saaleha and Imran.”

Wishbone: Did we just fall out of love with expensive sandwiches? The business was well-run and innovative, but it just couldn't keep customers coming into its lunch bars, say industry analysts.

Wishbone Liquidation - undertaken by Liquidation Management

Wishbone: Did we just fall out of love with expensive sandwiches? The business was well-run and innovative, but it just couldn't keep customers coming into its lunch bars, say industry analysts.

BRIGHT-LINE TEST (2, 5, 10 YEARS)

There have been considerable changes to the Bright-line test. The specifics of what applies depends on when you purchased or acquired your residential property, and then when you sold it. With the recent changes, the date of purchase and the subsequent sale date can determine if the capital gains through that ownership period must be included as taxable income or not.

Initially (on 1 October 2015) the bright line test was just for a period of 2 years. However, this was extended to being 5 years (on 29 March 2018). And more recently, on 27 March 2021, the bright line test was further extended to cover a 10-year period.

Currently, for all residential new builds, the bright line test is just 5 years.

Thank you from a client

"Thank you so much again Imran, I honestly can't tell you the hopelessness we felt before with our situation and with your help and guidance we now feel like we have some hope for our business"

What a nice way to start the day with compliments from a client

"That would be truely amazing. My heart rate’s returned to normal for the first time in years"

Budget 2023 – trustee tax rate heading north!

The headline tax change in Budget 2023 is the raising of the trustee tax rate from 33% to 39% — effectively bringing the trustee rate in line with the top marginal tax rate. The increased rate takes effect from the 2024–25 income year.

Noting that some taxpayers had taken advantage of the misalignment in tax rates once the top tax was raised in 2021, the Minister of Revenue pointed to the Inland Revenue’s recent High Wealth Individuals research:

“New information from Inland Revenue has shown an almost 50% spike in income subject to the trustee rate, from $11.4 billion in the 2020 tax year to $17.1 billion in the 2021 tax year.”

The legislation will contain measures to ensure that deceased estates and trusts for disabled persons are not subject to the 39% rate.

Tax cuts, and any moves to change the tax thresholds, have been firmly ruled out on the grounds that any relaxation of tax rates would fuel inflation.

Minimum wage rising to $22.70 per hour from 1 April 2023

Government extends cost of living support

The Government has announced that it is extending the reductions to fuel excise duty and road user charges to help reduce the road transport sector’s fuel costs and in doing so, keeping the cost of food and essential goods lower.
The following measures were announced:
• 25 cents per litre petrol excise duty cut is extended to 30 June 2023
• the Road User Charge discount will be re-introduced and continue through until 30 June 2023
• half-price public transport fares are extended to the end of June 2023 saving an average person who pays 2 $5 fares a day $25 a week, and
• half price public transport will be made permanent to around 1 million Community Service Card holders, including tertiary students, from 1 July 2023.

The holiday season is a wonderful time for us to remember the clients and friends who help our business and make our jobs a pleasure all year long. Our business would not be possible without your continued support.
We would like to take this opportunity to say thank you and send our best wishes to you and your families.
We want to wish you and your families a wonderful Christmas and Happy New Year, if you are travelling around our beautiful country or elsewhere in the world, stay safe and have the best time.
May your New Year be filled with all the success and happiness you deserve.
Please note that our offices will be closed from midday Thursday 22 December 2022 and will be reopening 8.30am Tuesday 10 January 2023.
Should you have an urgent matter during this period please contact Mohammed Jan on Mobile: 022 092 2024

New Disclosure Requirements for Trust

From now on, you’ll need to disclose a lot more information to Inland Revenue in your annual trust tax returns. The additional information will provide the Government with information on how trusts are being used, particularly with the introduction of the new 39% tax rate. As part of their annual income tax return, trustees will now have to disclose:
- Financial accounting information, including profit and loss statements and balance sheet items
- Loans to related parties
- Information on distributions and settlements made during the income year
- Names and details of settlors from prior years
- Names and details of each person who, under a trust deed, has the power to appoint/dismiss a trustee, to add/remove a beneficiary, or to amend the trust deed.

So what will all this mean for you?
- Given the significant increase in information, the Inland Revenue will now require, the costs for trustees to maintain the trust and comply with these new requirements will increase
-Trustees will need to spend additional time collating the disclosure information when they are preparing year-end information for the annual accounts and tax return
- Annual compliance costs will increase as accountants will need to enter the additional disclosure information into the Inland Revenue’s system
-The Government will likely share the disclosure information to overseas tax authorities as well as other New Zealand Government departments, such as the Ministry of Social Development which may impact on student loans and other benefits.

Business Debt Hibernation

Business debt hibernation is a government initiative created in response to COVID-19. It helps companies, trusts, and other business entities affected by COVID-19 to manage their debts.

Unfortunately, sole traders aren’t eligible for business debt hibernation.

Business debt hibernation helps you manage your debts.

• You set up an arrangement for your existing debts, eg paying your creditors only a percentage of what you owe them on time and delaying the rest.
• You get up to a month of protection while you set up the arrangement, meaning most creditors can’t enforce their debts, eg applying for your business to be liquidated.
• If your creditors agree, you get a further six months of protection.

You still need to pay off your debts in full. Business debt hibernation helps you manage your debts while you are protected but they don’t go away altogether. And it’s only for debts you already have. Any new debts will have the terms and conditions your creditors set. Some debts aren’t covered by business debt hibernation, e.g. employee wages and debts to secured creditors with a general security agreement.

Business debt hibernation reduces the burden of existing debts, so you can stay solvent and start trading normally again. For example, you might take a couple of months to get back up to speed, and then pay back the remaining debt over the following quarter. It’s a new option to consider alongside borrowing money, or processes like creditor compromises or voluntary administration.

We can organise business debt hibernation for you as there are several legal requirements. For example, you’ll need to complete several formal declarations and statements.

Another outstanding win in the High Court today

As a liquidator I have to sue shareholders & directors for breaches.

In this case I was dealing with difficult shareholders who transferred company vehicles to thier company without consideration.

They refused to hand over the vehicle to me asserting that I was not properly appointed and argued on the basis of a presumption of advancement defense.

The judge agreed that I took the correct action of bringing this case and awarded cost to me.

Further, declared that the vehicle belongs to the company.

The case required considerable case research , planning when dealing against aggressive defendants & thier lawyers.

Mainzeal - Director duties breaches by recklessly trading.
Directors to seek advice to avoid exposure

Mainzeal ruling likely to lead to 'significant increase' in damages paid to creditors, liquidators say But they were successful in relation to the amount of compensation they had been ordered to pay, Court of Appeal rules.

Liquidator seeks the prosecution of Home Funding Group

Home Funding Group fined $400,000 following ComCom probe The company falsely claimed to offer a saving scheme to help low-income families buy homes.