Wanganui Rivercity Press Article
Christine Savage is a Senior Accounting Technician within our business advisory team.
If you have a particular subject you would like Christine to cover in an article contact her on csavage@silks.co.nz or
ring her on 06 345 8539.
No matter the size of the business getting the correct information is very important.
How can you make an accurate decision for the business if the information you are relying on is inaccurate. The discussions you have with friends or colleagues at the "pub" are not always right. As an example just because your business pays for an expense does not mean that is automatically deductible for income tax purposes or GST is claimable.
Some common examples of expenses which may be paid for by a business but are not necessarily deductible or may be only partially deductible are: Clothing/Uniforms, fines and entertainment. There are very clear rules regarding the deductibility of these expenses.
You may not like the answer you get from the professionals when you ask about these expenses but we are looking after you best interests. We need to keep within the rules.
Often when we are asked about claiming clothing for instance, we get told but "my friend claims it". The Inland Revenue has strict rules about protective clothing and uniforms and unless the item falls into either of the categories it is not deductible for income tax purposes.
If the IRD conducts an audit and a return is found to be incorrect this can result in penalties & interest being charged.
If you need help with working out what is deductible for tax purposes or claimable for GST please phone me.
Published - 11 August 2011
