Dear TINZ member,

 A key mandate for the TINZ Council is that we continue to provide our members with real benefits for their association.  A recent review has been conducted in the area of increasing accessibility to high-quality, valuable and relevant updating resources for all levels of our membership (taking into consideration the differing business services, sizes and budgetary constraints of individual members) to align with the TINZ key objectives of:

§  fostering tax knowledge in New Zealand;

§  furthering tax practice in New Zealand;

§  representing tax practitioners in New Zealand;

§  maintaining the highest standards among tax practitioners.

It has been agreed by the TINZ Council to appoint CCH New Zealand as the TINZ preferred Information Service resource supplier.  Rose-Marie Nathan, Account Manager at CCH New Zealand, recently presented a proposed offer structure to the TINZ Council.  We are now delighted to advise that the offer structure has been agreed upon in principal.  The details of these offers and what this means to you and your individual business is highlighted in the pages that follow.

We believe the proposed offer structure will provide a vehicle to deliver better value, and ensure savings are made to TINZ members, with each member being fairly represented.  A significant benefit of this agreement is that all members will now have access to CCH bundled products that will align with the specific requirements of the range of member businesses we represent.

The TINZ Council will work closely with CCH to ensure the options are presented to the member firms for agreement in a timely manner.  The offers are based on both new acceptance and renewal (further details in the offer).

The proposal and forms are available on TINZ’s web site (www.tinz.co.nz) in our members home page. Please read the proposal carefully, provide the required information, sign your agreement of intent to participate, with your preferred option. You can scan and email the document to Rose-Marie Nathan at CCH on her email address below or fax the form to TINZ on (07) 579 4801 and we will pass them on to CCH.

If you have any questions or comments, do not hesitate to contact Rose-Marie Nathan on 021 430 716 or rnathan@cch.co.nz.

Thank you for your consideration of this initiative and the TINZ Members’ Group Package. Your support will ensure the best possible options are available for all of our members.

Yours sincerely,

 Pene Johnstone – President

On behalf of the TINZ Council

CCH New Zealand Gift to You

Following the abolition of gift duty there will be no requirement to file gift statements and associated deeds. This means that it will be necessary to reconsider how gifts are recorded and what documents are required. Trustees will still be required to keep a record of all forgiveness of debt and distributions to beneficiaries over the life of the trust: Tax Administration Act, s 22B.

Although there is no legal requirement that gifts (other than real property) are recorded in writing, in the absence of any formal record of a gift, proving that a gift has been made may be difficult.

Where a gift cannot be proven, it may be treated as an advance or as having failed such that the "gift" is still the donor's property and is available to creditors.

Requirements to ensure the legal certainty of gifts, such as deeds of gift for trusts will still be required.   See the special report on the abolition of gift duty at www.taxpolicy.ird.govt.nz

Whether to gift?

The appropriateness, or otherwise, of forgiving outstanding debts, or otherwise making gifts will depend on the circumstances of each individual. Accordingly, practitioners will also need to up-skill on how to advise clients regarding whether or not to forgive existing (and on-going) debts in whole or in part.

The decisions that require to be addressed will generally fall under one of five headings:

• Identity of beneficiaries
• Residential care subsidy entitlement
• Preservation of rights
• Solvency / Creditor protection
• Relationship property considerations

To download the full gifting booklet, click here