RITANZ Chairman, John Fisk, was recently interviewed by Radio NZ on a range of issues facing our industry at the moment and the work that we as RITANZ are doing around proposed legislation. See the following audio clip from this morning’s broadcast on Morning Rural News. The piece dealing with the proposed Farm Debt Mediation Bill is at 2:20 mins into the clip.
MBIE has advised of an upcoming change to the maximum employee preferential claim figure in the Companies Act 1993 and Insolvency Act 2006.
On 30 September 2018, The figure is being adjusted from $22,160 to $23,960. This adjustment occurs every 3 years, to account for any increase in average weekly earnings (total, private sector).This adjustment reflects an 8.1 percent increase in average weekly earnings since 2015, as reported by Statistics New Zealand in its Quarterly Employment Survey.
The amendments to the Companies Act and Insolvency Act have been signed into law (see the New Zealand Legislation website) and notified in the Government Gazette. For more information, please see the MBIE website.
Following the incorporation of GST into the new Inland Revenue computer system START, Inland Revenue has a new process for dealing with GST and refunds. Some insolvency practitioners have been confused by aspects of the new process, and in particular by requests from Inland Revenue staff for an IRD number for the account into which the refunds are to be paid. Inland Revenue wish to make it clear to insolvency practitioners that the IRD number is required as part of the verification process in START and not for any type of audit or compliance activity.
When notifying Inland Revenue of their appointments practitioners should also include in their letter details of the account into which they want tax refunds to be paid together with the IRD number for the owner of that account.