Here’s to another year down!

JACAL would like to wish you all a happy & safe Christmas. We want to thank-you all for your support & hope you have a beautiful relaxed holiday!

Merry Christmas & a Happy New Year

If you need to get in touch with any of our partners please call :

Rick Johnston   :  027 474 0154
Willy Johnston :  027 474 5124
Logan Granger :  027 283 8331
Rupit Kshatriya : 021 146 6306

JACAL’s new Pay Online Facility

Responding to customer feedback, we are now sending invoices & statements directly by email instead of using the old portal which required logging in.

Our new “Pay Online” facility is up & running – simply click the link below to take you to our payments page and follow the user-friendly instructions.

We hope you find this new method more convenient


Resigning as a Trustee of a Trust?

Trustees are personally liable for the tax obligations of the trust.

If you or your fellow trustee resigns as a trustee, you must advise the IRD in writing.

If you or your fellow trustee resigns as trustee of a trust and don’t send the IRD written confirmation, the IRD will still recognise you or them as a trustee, which makes you or them liable for any tax obligations of that trust.

For income tax and GST purposes, you may be liable for any outstanding tax for the periods you were a trustee.

This includes the period of time between the resignation as a trustee and the IRD receiving written confirmation of the resignation.

This liability continues until any debt is paid.

Bright-Line Property rule is now Law


The Taxation (Bright-line Test for Residential Land) Act 2015 received Royal assent on Monday 16th November 2015

This Act has introduced a new bright-line test for residential land.

Under this test any property bought on or after 1st October 2015 and sold within two years may be taxable unless one of the following exclusions apply:

  • it’s the sale of the main home
  • it’s a transfer on the death of a person to the executor or administrator of the estate
  • it was inherited

Transfers of relationship property have special rules.

The other existing rules around tax on property come first and then the bright-line test.

For example :   If the sale isn’t taxable under the intention test you should then consider if the bright-line test applies.

Do you have a Shareholders’ Agreement?

If you’re working in a company in which you own shares, do you have an agreement with your co-shareholders? These are called shareholders’ agreements.

A and B worked together in a panel-beating business. A dies suddenly, leaving everything to his wife, so she became the new shareholder. B didn’t like Mrs A and wanted to buy her out but they couldn’t agree on a price, she became difficult to deal with as a result of not having a shareholders’ agreement.

Your shareholders’ agreement should provide a way for shareholders to sell their shares if they want to get out of the business.

Contact your JACAL adviser for a shareholders agreement checklist.

KIWISAVER – Refresher

Let’s be clear: joining Kiwisaver is entirely your decision

In a limited number of circumstances, staff aren’t eligible to join – for example : someone over 65 and non-resident employee’s – but if you already belong to Kiwisaver or want to join, your employer has to get on board.


With around $30 million in Kiwisaver payments due to the IRD currently outstanding, it seems a large number of employers don’t understand their obligations or are willfully ignoring them.


Every time someone starts a new job it is a legal requirement to enroll in Kiwisaver. The employer immediately deducts 3 per cent of salary and contributes another 3 per cent.

A fortnight after starting, employees can opt out and have a further six weeks to do so. If you opt out within that two-to-eight week, post-join-up period, any payments will be refunded to the employee and employer by the IRD.

Once you belong to kiwisaver, as an employee, everything you earn has kiwisaver taken out including things like Christmas bonuses.

The law is also clear it is up to the employer to get it right.

Obviously these rules don’t apply to anyone who has chosen to take a contributions holiday.

When you start Kiwisaver contributions, it can take up to 3 months for it to appear in your account at your provider – IRD pays interest of 2.35 per cent on any money it holds.

ATTENTION : Construction Industry. ..Message from the IRD

The IRD are continuing to focus on compliance in the construction industry, and if you are involved in the construction industry you may soon receive a letter or email from the IRD regarding your obligations to declare all cash jobs in your GST and income tax returns.

It is worth noting that this applies to anyone that does jobs for cash.

Important Dates to Remember

23rd December 2015 :

JACAL’s closing date.

18th January 2016 :

JACAL will be opened at 8:30 a.m.


In case of an emergency we have a skeleton crew working from Monday 11th January 2016

Remember to file and pay before you go away if you’re having a holiday break. With the  holidays fast approaching , now is the time to get everything sorted.

15th January :

Instalments of provisional tax and student loan interim payments are due for those with a March balance date. November GST returns and payments are due. PAYE payments and EMSs for the second half of December 2015 are due.

20th January :

Employer deductions for December 2015 and/or the period 1 – 15 January and FBT quarterly returns are due.

7th February :

Income tax payments, student loan repayments and Working for Families Tax Credits over payments are due for clients without extension of time or not linked when assessed. As this date falls over a long weekend you have until the next working day (9th February) to pay.

Disclaimer – While all care has been taken, Johnston Associates Chartered Accountants Ltd and its staff accept no liability for the content of this newsletter; always see your professional advisor before taking any action that you are unsure about.