Johnston Law

We recently assisted a client who was burdened with a substantial tax bill which arose as a result of poor advice during a relationship property division. It seems the lawyer involved did not seek tax advice on this vital point. We first had to advise the client that the relationship property division created a tax liability, for which we assisted with a voluntary disclosure. However, as a result of the substantial time that had passed, the client faced an overwhelming 10 years of accumulated interest and late payment penalties, that more than tripled the original tax amount. 💸 After the voluntary disclosure was completed, we successfully drafted an application for a full remission of the penalties and interest which significantly reduced our client’s financial burden. The moral of the story – expert advice matters! If you’re dealing with a tax issue, or a relationship property division which could create a tax issue, contact us for professional and specialised advice – the right guidance can save you time, money and a lot of stress! ✅

As the holiday season approaches, we’d like to take a moment to extend a thank you to our clients and professional partners for your ongoing trust and support. It’s been a busy year, and with the lead up to Christmas also heavily booked, we are now scheduling new work for February 2025. If you require urgent assistance - please don’t hesitate to get in touch - we always endeavour to make time to address pressing matters as they arise. We are also looking to expand our team and have begun our search for tax-qualified team member to join us. If you, or someone you know, may be interested, please reach out.

We wish a Happy Thanksgiving to all our US clients today 🦃 Thanksgiving is a wonderful opportunity to reflect on gratitude and the value of being with loved ones. Whether you're gathering with family, connecting with friends, or enjoying some quiet moments of reflection, we hope you find time to appreciate what truly matters and share in the spirit of thankfulness. Wishing you all a day filled with warmth, gratitude, and the joy of good company.  

Julia had the privilege of attending last night’s citizenship ceremony hosted by the Christchurch City Council at the town hall, where individuals from 50 different nations officially became New Zealand citizens.  For many, it was a momentous occasion, marking an important milestone in their journey.  Julia attended the event in support of a family member, and it was a reminder of how lucky we are to live in a city that continues to grow and thrive, shaped by contributions of people from all around the world. Congratulations to all the new citizens!

A recent technical decision summary serves as a reminder to companies providing accommodation to employees, or those associated with the company to ensure they understand the full tax implications. It demonstrates just one of the many arrangements we see that can lead to significant, often unexpected, tax consequences and highlights the complexity of determining the tax treatment of employer-provided accommodation.

A recent technical decision from the New Zealand Tax Counsel Office delivers valuable guidance for foreign companies engaging with New Zealand businesses. 🌏💼 While this ruling provides clarity on the tax treatment of a specific arrangement, it is important to remember that the decision is only binding on the specific parties involved and cannot be applied universally without considering the unique facts of each case. Companies entering into similar arrangements should seek professional tax advice tailored to their specific circumstances to ensure they understand and comply with their New Zealand tax obligations.

Are you grappling with the complexities of blended families and estate planning? 🏡💖 Our latest article highlights the importance of proactive estate planning to ensure all family members, including stepchildren, are able to benefit from your assets in accordance with your wishes. We cover key steps, from open communication to drafting clear wills, to help promote clarity and prevent disputes. Don’t leave things to chance - we’re here to assist you in ensuring equitable treatment for everyone in estate planning matters. #blendedfamily #EstatePlanning #inheritance

📢Tax Compliance Update📢 This article highlights IRD’s announcement regarding visits targeting tax evasion. This is very much in line with what we’ve been observing in their revamped, more assertive approach to tax collection. With heightened scrutiny and rigorous enforcement becoming the new norm, it’s more important than ever for businesses and individuals to ensure they are fully compliant. If you’re unsure about any aspect of your tax obligations, or need assistance correctly previous non-compliance, reach out – staying proactive can make all the difference! #TaxCompliance #IRD #taxadvice

Today is Gumboot Friday! We’ve put on our gumboots to raise awareness for mental health, inspired by I AM HOPE's powerful message about the daily struggles many face - which can be likened to “walking through mud every day”. We proudly support their mission to provide free counselling services to young people across New Zealand, ensuring that no young person has to navigate their struggles alone. To learn how you can help and donate, visit https://lnkd.in/gMtx9JHC Together, we can make a difference! 💙💛 #GumbootFriday #IAMHOPE #mentalhealthmatters

📣 Tax Residency Update 📣 After more than a decade, the tax residence interpretation statement is getting a much-needed refresh! Inland Revenue have released a draft interpretation statement for consultation which is set to update and replace the current IS16/03 which will reflect numerous legislative changes that have occurred over the years. Accompanying the draft interpretation statement are three fact sheets tailored for individuals, companies, and trusts, along with a reading guide. All in all, there are 163 pages! 👉 Stay tuned for more details or contact us if you need specific advice