Xero cloud accountingAuckland Accountant, Brad Golchin spent a month traveling around Europ, showing how it is possible to run his business remotely using cloud based systems. He was in contact daily with his staff and clients via email, Skype and Office 365, monitoring accounts on Xero, filing tax returns on Workflowmax.

The Budget announced on Thursday 24 May displayed the ‘responsible management’ approach this government is promoting to build towards the vaunted ‘return to surplus’ predictions for 2014/2015.

For the small business owner there is little to celebrate – the increased compliance funding to the Inland Revenue, being an additional $78.4 million over the next 4 years, is targeting the hidden economy, debt collection and unfiled returns with an anticipated tax revenue increase of $345.4 million over the same period. The IRD are also planning to review the FBT exemptions for carparks and childcare on employer premises and the trading of salary for allowances that are not subject to tax.

Important Notice to all Wise Advice Clients and Website Visitors

We have been made aware of an email circulating purporting to be from the Inland Revenue Department, advising individuals and businesses of a tax refund available to them and requiring the recipients to download and complete a form within 48 hours.

Inland Revenue released Question We’ve Been Asked QB(Question Been Asked ! )11/03: Income Tax – Look-through Companies and Interest Deductibility on 1 November 2011. QB 11/03 considers whether interest will still be deductible where a person who owns 100 per cent of the shares in a loss-attributing qualifying company (LAQC) had previously sold their family home to the LAQC as a rental asset, to be rented to a third party on an arm’s-length basis: the sale was at market value; the LAQC borrowed from a bank to fund the purchase; the person then used the funds raised from the sale to purchase a new family home; and the LAQC becomes a look-through company (LTC).

In the five years Xero has been on the market it has quickly gained a reputation as being the easiest accounting system around. Xero is a cloud based system which means that you can log into it securely from any computer with an internet connection anywhere in the world. It also means you won’t need to buy costly accounting packages and upgrades ever again and it even eliminates the need for backups – if your computer crashes you won’t lose your accounting data! In addition to these practical benefits using Xero has many advantages that can give your business an edge:

Many people dream of buying a business and turning a small idea into a big success. The attractions are in making large profits, being your own boss, making your own decisions and employing other people to do your work and having time to think of other small ideas to grow… Buying an existing business gives you a kick-start in premises, plant, machinery, staff, plus brands, goodwill, marketing, databases – all assets that are attractive to a prospective buyer.

Former restaurant owner gets home detention for false income reporting

“A former Wellington restaurant owner has been sentenced to five months home detention and 200 hours of community work for filing false Income Tax and GST returns and evading tax.

Darrell Earl Antonopoulos plead guilty to three charges of aiding or abetting his company, Whonere Holdings Limited, trading as La Casa Pasta restaurant, to provide false Income Tax returns and 24 charges of providing false GST returns to Inland Revenue with the intention of evading tax. Mr Antonopoulos was charged under the Tax Administration Act.