TAX TIDBITS
Issue Four, December 2005
In this months issue:
Noticeboard
EMPLOYING A SPOUSE
If you are not operating as a company and you wish to employ your spouse or civil union partner in your business then you need approval from the Inland Revenue Department.
To request approval you need to apply to in writing, giving the following details:
- The type of business and full details of the nature of work to be undertaken.
- The average number of hours worked each week, and the number of weeks to be worked during the year
- The amount of wages paid and how payment of wages is to be made, e.g. cash or crediting to a bank account.
- Details of any other workers you employ and the total amount paid as wages, not including the wages paid to your spouse or civil union partner.
Providing the payment is solely for services given in the course of carrying on the business, and the payment is not excessive then approval is usually granted.
TRAFFIC FINES
- It is incurred by an employee in the course of their lawful employment duties and paid by the employer.
- It is not a fine imposed on the employer or a company or those incurred privately.
FAMILY TRUSTS AND IRD NUMBERS
If a family trust is a taxpayer it must have an IRD number and complete a tax return each year. Whether a trust is deemed to be a taxpayer depends on whether it earns income or has income-earning assets, e.g. bank accounts, shares/investments and other business assets that produce income. If the trust has no income or income-earning assets then it is not a taxpayer and no IRD number is required, e.g. a family trust that owns a family home but no other assets.
Noticeboard
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Information contained within this document is of a general nature and does not constitute advice. Readers are cautioned not to act or reply on it without first seeking professional advice.
