RITANZ has prepared and submitted our submission on the Supplementary Order Paper to the Insolvency Practitioners Bill which strongly supports the IPB and the co-regulatory regime for insolvency practitioners . On the 20th Sep 2018, we will appear before the Select Committee to provide an oral submission.
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.
On the 28th June, the Minister of Commerce and Consumer Affairs. Kris Faafoi sent the Insolvency Practitioners Bill back to the select committee to consider a supplementary order paper which replaces the proposed negative licencing regime with a co-regulatory licensing framework.
The select committee is calling for submissions on the SOP with a deadline of 24th Aug 2018.
RITANZ is compiling a submission representing feedback from the industry viewpoint and we encourage members to let us have their thoughts and comments on this very important topic as a matter of urgency.
The SOP is available for further reading as per the link below:
The Farm Debt Mediation Bill would amend the Receiverships Act 1993 by introducing a mandatory mediation process and deferring the appointment of receivers for a minimum of 10 days to allow this process to take place.
This Bill was proposed, drawn up and introduced into parliament over a very short period of time and will need rigorous review and some adjustment before it can be passed into law. It is imperative that our industry has a voice and that RITANZ responds with our members thoughts and concerns on this before submissions close on 3rd Aug 2018.
The government is introducing a licensing system for insolvency practitioners, Commerce and Consumer Affairs Minister Paul Goldsmith announced today.
“Every year hundreds of New Zealand companies go into liquidation, receivership or administration. Outstanding debts can run into many millions of dollars.
“When a company is unable to repay their debts and becomes insolvent it is essential there is a high level of trust and transparency around the process for all parties involved,” says Mr Goldsmith. “Insolvency practitioners play a key role in protecting the interest of creditors but concerning gaps have been identified in standards and ethical behaviour.
On 23 June 2016, the UK voted to leave the EU, sending shock waves across the markets and economies worldwide. While it will be several months before the full implications can begin to be understood, we look at some of the likely impacts on R&I lawyers and professionals.
The UK has voted to leave the European Union by 52% to 48%, with a turnout of 72%. The full impact of the referendum result will become apparent in the coming days, weeks and months (see LNB News 24/06/2016 1).
When will the UK actually exit the European Union?