Stewart & Co Blog

Deductibility of Gifts



With Christmas not too far around the corner, we thought it a good time to update you on IRD's current position regarding gifts to customers, clients and staff.

The IRD have recently reinterpreted their position on the giving of food and drink as gifts.  Where these are to be consumed off the business premises the IRD consider these to be only 50% deductible.  This is a change from their previous interpretation of these being 100% deductible.  The reason IRD say is that there is an element of both business and personal benefit from the gift – benefit to the business giving the gift and enjoyment for the person receiving it.  
So what does this mean:
  • If you give food or drink as a gift, including as part of a gift basket, this is only 50% deductible as an expense.  
  • If you give a gift basket which contains both food and drink and non-food items, you may need to split this cost of this between the two.  
  • If you give something other than food and drink as a gift, this is 100% deductible.  
So when looking at what to gift to your customers, clients and staff you may like to look outside the box on what to give.  Some ideas we have seen include:
  • Umbrella's or sunshades
  • Beach Towels
  • Pot plants
  • Gift Vouchers  

E-GST Now Available Through MYOB and Xero

Its official, you can now file your GST returns directly with the IRD through both Xero and MYOB Essentials cloud-based accounting software.  E-GST will be available in MYOB AccountRight soon. 

So how does this work:

Firstly, you will need to ensure that you have a myIR login with the IRD.  If you do not have this set up, head over to the IRD website and click on the Register link for myIR. 

Read more…

IRD Phishing Scam

Over the past two weeks Inland Revenue has received reports of a telephone phishing scam from several hundred customers around New Zealand.

The scam calls have been made to landlines and mobile phones, with messages being left on voicemail if the calls haven't been answered.

The callers state that they are from the Inland Revenue Department and the following scenarios have been reported, that the customer:

  • is wanted for historic tax evasion or tax avoidance
  • has a red flag on their file
  • is in debt

and they or their lawyer must return the call as soon as possible. Some customers have been told to make a payment via Western Union within 30 minutes, or risk arrest. Read more…

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