From the Law Society: New measures to help businesses through COVID-19 crisis
17 April 2020
The Government has announced new measures to provide relief for small and medium-sized businesses during the COVID-19 pandemic.
The new measures include:
- $3.1 billion tax loss carry-back scheme (estimated cost over the next two years),
- $60 million estimated annual savings to business each year from changes to the tax loss continuity rules,
- $25 million in the next 12 months for further business consultancy support,
- Greater flexibility for affected businesses affected to meet their tax obligations,
- Measures to support commercial tenants and landlords.
“We have taken decisive action throughout this pandemic to cushion the blow for our businesses and workers - today’s announcement
continues that focus. We need our businesses to stay solvent to help with the economic recovery as we emerge from this health crisis,”
says Finance Minister Grant Robertson.
“Our focus on cashflow and confidence continues through these measures. We have approved a tax loss carry-back scheme that will
allow a large number of businesses to access their previous tax payments as cash refunds. Essentially this means a forecast loss in the
current financial year can be offset against the tax paid on a profit from last year.”
We are also changing the tax loss continuity rules to make it easier for firms to raise new capital without losing the benefit of their existing tax losses.”
Minister for Small Business Stuart Nash says some businesses are struggling to meet their non-wage fixed costs, like interest, rent and insurance, but
are not currently in a position to take on additional debt.
“In the absence of further support from the Government, these otherwise viable SMEs may be forced to close down permanently.
“We don’t want that to happen, so as well as the tax measures which should provide some cashflow relief, we are going to provide tailored
support services to help businesses weather the storm, at no charge to the business.
“Using established services including the Regional Business Partner Network and the helplines run by the Employers and Manufacturers Association
and Canterbury Chamber of Commerce, we can get specialist, tailored advice where it is needed, fast. This could range from human resources advice
to business continuity planning to financial management – because every one of these small businesses will have a different need,” Mr Nash says.
New measures are also being announced to support stability in commercial property transactions, extending the timeframes required before landlords
can cancel leases and mortgagees can exercise their rights to sale or repossession.
Legislation enacting the changes announced today will be introduced on 27 April and will apply retrospectively once the bill is passed.
Work is also underway on further support for businesses and households as the impacts of COVID 19 become clearer.
(Article accessed from https://www.lawsociety.org.nz/news-and-communications)
Covid-19 Update: We are still here!
15 April 2020
As of 24th March we have made the switch to remote working and will continue to do so until the government notifies us otherwise. As many of you know, the abrupt
switch to working from home presents unique challenges to us all, as we adjust to balancing familial and work commitments within the setting of our ‘bubble’. During
this time, we want you to know that we are still committed to bringing you a high standard of work, however, this may take slightly longer than usual. Working from
home has meant that a lot of our processes have become much less streamline and therefore tasks are taking longer to complete than they did pre-lockdown. We
are doing our best to keep business as usual, and ask that you are patient with us during these trying times.
We all appreciate your patience and support during lockdown and look forward to a time in the near future where we can open our office doors once again.
- The team at Alan Jones Law Limited.
It's official: The new Trusts Act 2019
3 February 2020
The long-awaited Trusts Bill has now received Royal Assent (30 July 2019), meaning the Trusts Act 2019 will replace the Trustee Act 1956 and the Perpetuities Act 1964.
This will make trust law more accessible and clarify and simplify core trust principles and trustee obligations. Overall, this is good news given the significant number of
trusts in use in New Zealand (estimated to be between 300,000 and 500,000).
Click here to download the full article by Nicola Hankinson.