Name: Daniel
Email:
Web Site: http://www.dhatax.co.nz
Bio: Daniel Hunt - CA, CPA, CPP, AFA, RTA, MBus(tax), BBus, Grad Dip Bus, Nat Cert Financial Services, Education & Training. After graduating from AUT, Daniel joined the ranks of PricewaterhouseCoopers. He later founded his own tax training and consulting practice, Daniel Hunt & Associates. Daniel advises on taxation and business issues, and provides tax consulting, compliance, and training services. His clients range from individuals to multi-national companies, and he presents at universities and other educational institutions. Daniel contributes to and has written a number of CCH tax publications. He also regularly contributes articles to the New Zealand Herald, the Chartered Accountant’s Journal and Financial Alert. Phone 0800 DHA TAX
Posts by Daniel Hunt:
Imputation credits & resident withholding tax – reminder
January 31st, 2012As year-end is approaching quickly, it is important to remember that the maximum imputation ratio for dividends is 28:72 for the 2012 income year (previously 30-70 up to end of the 2011 income year). The Resident Withholding Tax (RWT) rate on dividends remains at 33 cents in the dollar meaning dividends are still taxed at 33% in the hands of the recipient (i.e. shareholder). RWT must be paid by the company for the imputed dividend shortfall. Read the rest of this entry “
The perfect gift after 125 years
September 14th, 2011An Inland Revenue report on the abolition of gift duty is set to cost professionals such as accountants and lawyers around $70 million in lost compliance fees. It is estimated that the government will save around $430,000 in administration fees but forego the $1 million a year in duty they were receiving from the scheme. Read the rest of this entry “
Penny & Hooper – legitimate tax planning or avoidance?
August 24th, 2011The Supreme court has today released its long-awaited decision about a landmark tax case – Penny & Hooper. The case was decided in favour of Inland Revenue and this decision has widespread implications for the many small businesses using trust structures.
The case is a classic example of taxpayers complying with the ‘black-letter’ of the law, yet not acting within the ‘scheme and purpose’ of the Income Tax Act.
This case involved the restructuring of the business of two surgeons (Penny & Hooper) from sole practitioners earning an income of approximately $500,000 per year, into a company owned by a family trust for the benefit of the surgeons and their respective families. The surgeons became employees of their companies, on salaries of approximately $120,000 per year, while the remainder of the profit from their services was retained by the companies and allocated to the trusts.
Legitimate tax planning or avoidance – what is your view?
Is a capital gains tax justified?
July 14th, 2011… and so the battle continues as to whether or not New Zealand should introduce a capital gains tax. Today labour released its tax policy – a capital gains tax was at its centrepiece. The proper income tax treatment of capital gains has raised much debate and controversy amongst New Zealanders for many years.
Any good tax system or tax policy requires equity (equality), certainty, convenience and efficiency. Given a capital gains tax has the convergence of these key tax policy criteria, I believe the case for the introduction of such a tax is justified. What is your view?
LTC loss limitation rule explained – ‘Owner’s shareholding’ versus ‘owner’s effective interest’
March 18th, 2011From 1 April 2011 new tax legislation introduces the Look-Through Company (LTC). This is the result of tax legislation passed in December 2010. From 1 April 2011, LAQCs, as we know them, will no longer be! This post provides a brief overview of the new entity and attempts to explain the new LTC loss limitation rule. Read the rest of this entry “
David Tua v Inland Revenue – now this will be an interesting fight…
October 12th, 2010One of the great unknowns when you enter the boxing ring is how hard your opponent will be able to hit you. In recent times, the Inland Revenue has just delivered a couple of powerful punches to the face of David Tua, claiming he owes a whopping $2.2 million in unpaid taxes. Read the rest of this entry “
In an increasingly complex tax world, how do you stay out of trouble?
September 23rd, 2010Tax headlines recently have reflected lengthy tax disputes, many which have been lost by the taxpayer. Inland Revenue has increased its focus on tax audits and this can leave many companies feeling nervous about their practices. Are you next? Read the rest of this entry “
J G Russell 30 years on – is the IRD ever going to give up?
August 6th, 2010…and so the battle continues between a tax “genius” and the IRD. Since the 1980s, Mr J G Russell (Mr Russell) has been involved in legal disputes with the IRD over various schemes designed to reduce liability for income tax on companies he consulted to. The IRD claims that he owes millions of dollars in back taxes, which has since grown, with penalties and interest, to a whopping $138m. Read the rest of this entry “
Tax Avoidance – it all comes down to statutory interpretation
July 11th, 2010In recent times, we have seen several tax cases being lost by Taxpayers. Analysing the judgments, I believe we have seen a fundamental move when dealing with tax avoidance – a move back towards statutory interpretation. The Newton and Elmiger cases are the policy basis for our anti-avoidance rule as they focus on statutory interpretation and I believe the courts are showing a move back to this ordinary approach (as can be seen in the Banks cases).
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