According to Wikipedia*, "phishing is the attempt to obtain sensitive information such as usernames, passwords, and credit card details (and money), often for malicious reasons, by disguising as a trustworthy entity in an electronic communication.[1][2]"

Quite often they look like a legitimate email from IRD (about a tax refund, or warning of tax owing), or an email from a provider like Office365 or Apple. More info here at netsafe.org.nz*. 

There are often several clues; please see the copy of example emails below.

• IRD will never email you to tell your account has been hacked, that you owe tax, that you are due a tax refund, that the Police are after you, blah blah blah. 
• Phishing emails often have spelling mistakes or unusual grammar (although not always)
• The email address is not one that matches the organisation, or it is close but not quite right e.g. it is from ird.co.nz instead of ird.govt.nz; e.g. we received a message supposedly from Microsoft, but the email address was messagealert@ another organisation

Here is one phishing email we received recently. It looks rather convincing, but there are a couple of clues in the email that it is not from a legitimate source

1. Grammatical error in the opening line: "receive" instead of "received"
2. Email address is odd
3. We were not expecting anyone to send a confidential document, so this is out of character
4. Unusual grammar in the body: "secured document" instead of "secure document"
5. Odd closing line: "We hope to continue serving you"

Here is another example of a phishing email.  Note again the clues that it is not "legit":

• email address is not from Apple
• email shows it is sent "on behalf of" someone else
• grammatical errors e.g. "problems with your account Apple", "if you ignored this email", "disabled the next 48 hours.. .", space between account and the exclamation mark
• incorrect use of capitals e.g. "Officially Permanently"

• Be cautious about emails asking you to update or verify your details online
• Be cautious of emails saying you’ve won prizes from competitions that you don’t remember entering
• Be cautious of emails that try to get you to act quickly by threatening you with legal action or loss of an account
• Ignore any emails asking you to provide personal information like passwords, or banking information
• Remember legitimate organisations like banks will never ask you to send them your password
• Only open email attachments when you’re expecting them, even if you know who the sender is
• If you’re unsure if an email is from a legitimate organisation, you can contact them to ask. If you do contact them, make sure you go through their official contact channels – don’t use the phone numbers, websites or email addresses included in the email

See more tips on this page at netsafe.org.nz

What should I do if I need help or advice?
You can contact Netsafe:

• Email queries@netsafe.org.nz
• Call them toll free on 0508 NETSAFE (0508 638 723)
• Online report form at netsafe.org.nz/report

Their helpline is open from 8am – 8pm Monday to Friday and 9am – 5pm on weekends.

* We have quoted information from Wikipedia (licence terms) and Netsafe (licence terms). Use of this information does not constitute an endorsement of EpsomTax.com by either organisation. This information is not provided for commercial purposes, but strictly in an attempt to help promote community awareness of fraud and how to prevent it and protect yourself.

Currently, the tax thresholds are as follows:

As you may recall, these were to be changed. However, due to a change of government, there will be no change to these tax rates. There will no doubt be lots of other changes coming; we will post as soon as information is finalised.  At the moment it is all hot air and speculation...

The government announced in today's Budget that it would be increasing the EQC rate insured homeowners pay from 15c per $100 of cover capped at $207 a year to 20c per $100 to a maximum of $276 per year.

The increase could result in people paying up to $69 more per year on their insurance. This comes at a time when the government was already planning a 40 per cent increase in the fire service levy.
​
The fire service levy increase comes in from July 1 while the EQC levy increase will come in on November 1.

For more info please see this article

Is selling your home taxable?, Or in other words, do you have to pay tax when selling your home?

Buying and selling your private or family home typically is not taxable. However some are looking to purchase a family home with the intention of reselling it in time, and a few earn their income this way – buying and selling.

If you have established a pattern of purchasing and then selling your “family home,” this could be considered as property speculation or dealing for tax purposes.

So, how do you know whether you are considered a property speculator, dealer or investor?  Click here for the IRD definition

Things to consider in answering the above question:

• what was your intention when you bought the property?
• what pattern have you established in terms of property transactions?
• are you (and if so, how) associated with a developer, builder or property dealer?
• will the Bright-line Test* apply?
• will you be affected by rezoning?

​How do you know if selling your home will be taxable?  Think carefully about the answers to these five questions.

“Ok, so I just have to hold onto a property for a really long time and then I’m not considered a dealer?”  No.  The amount of time you hold the property is immaterial.  It’s your intention at the time of acquisition.If you bought a property with the intention of reselling it, then any capital gain that you make on the sale taxable.

“Right-o.  So, is there some sort of level?  That is, my first couple of properties are tax-free and then I pay tax after that?”   Ahhh… no.  Again, it’s intention, patterns and associations – not numbers of properties sold.

“Great.  It looks like I will have to pay tax then.  How do I figure that out?”  The IRD have a great resource here – or you can contact us.

* For a definition/more info please see this article at the IRD Tax Policy website

As a result of changes imposed by Google, we will soon be acquiring an SSL certificate for our website.  The host, weebly.com, is rolling this out to all sites.  Meantime, if you wish to check our credentials, you can do so here.​

For more information, please contact us

You will be sent an email with a link.  Click on the link to view the document. This will open in a web browser on your device. To view the document, click on it.

Click on the email link once again, scroll to the bottom of the page and click on the green approve button if you are happy with the contents.

From the 2018 income year (that is, 1 April 2017 onwards), the safe harbour threshold has been increased! Hooray, I hear you say. It's gone from $50,000 to $60,000. It has also been extended to non-individual taxpayers e.g. companies. 

What does this mean? Use of Money Interest (UOMI) will only be payable from terminal tax date* for natural persons and non-individuals where their residual income tax liability is less than $60,000 and the following requirements have been met:
​
The taxpayer must have:

• Paid all provisional tax instalments under the standard# methods on time,
• Not estimated their Residual Income Tax (RIT), and
• Not used the GST ratio method.

There are a couple of other points: The requirement that they must not have held an RWT exemption certificate at any time during the year has been removed. Oh, and there is an anti-avoidance rule as well, so that you can't manipulate your incomes to fall within the safe harbour provisions.

* Terminal tax date is either 7th February if you do not have an accountant or tax agent OR 7th April if you have an accountant or tax agent who has an extension of time on your behalf.... more info
# Standard method is last years residual income tax + 5%, OR your residual income from two years ago + 10% (only if you haven't filed last year's return yet)... more info

You might have noticed that things are taking a little longer to process, both at EpsomTax.com and at IRD. We have entered the middle of the year slow-down.  What is it? Well, it doesn't mean we are putting our feet up. Far from it! Rather, it is when the bulk of clients have their work with us (no matter how we try to spread things out), so there is an inevitable hump to get through.

Please be assured we are working as fast as possible, and yes, we have taken on extra staff to cope with it!  We apologise for the delay!

​If you would like to discuss, or have concerns, please contact us

Why is a chattels valuation necessary?
Typical valuations assign a valuation to chattels of $10-15,000. However, they often miss many depreciable items, such as driveways, fences, decks, paths, hot water cylinder, letterbox, garage door motor etc. 

When you obtain a chattels-specific valuation, typically the value of the chattels for a new home is $45-50,000+ and for one built in the 1980’s $25-30,000. Even if your chattels valuation comes out at only $30,000 then the value for the tax refund will be around $10,000. The higher the chattels value, the more depreciation can be claimed, which means less tax to pay or larger tax refunds. 

Are there any exceptions?
The only exception to the chattels valuation, is if it was a rental already owned by you or another entity you controlled, and you had already filed a tax return for that property at least once. In that case, we can’t “re-value” the chattels. 

​What will it cost and who does this?
We know of only one firm: ValuIt. Visit their website www.valuit.co.nz or call 0508 482 583 to book a valuation. Please note, we receive no financial incentive or otherwise for recommending them. However, we encourage you to do this without delay, as they are very busy and it can often be 2-3 weeks before someone can get to see your property.

Further reading
Depreciation: Simple Overview (video)
6 Minutes on Depreciation (video)
Depreciation Clawback and Your Rental Property
Depreciation of Chattels in Your Rental Investment Property
​Valuation of Chattels - Why Necessary

First, open your sheet on your iPhone or iPad. 
Next, touch the three dots at the top right-hand corner

Then, choose Send a Copy
​Touch Excel

Lastly, email to us or share to your Google Drive or Dropbox.com, then share to office@epsomtax.com

If you have to pay provisional tax, then there is a good chance you're using tax pooling, courtesy of Tax Management NZ (TMNZ).

We've collected a few common questions here to help. If your question is not here, please see this page or contact us.

Q: IRD are calling and texting me saying my tax is overdue?
A: Correct. This is to be expected. IRD have no visibility of what money you've deposited into the Tax Management NZ tax pool until it is actually in the IRD bank account.

Q: So what do I say to IRD then? I'm a bit freaked out by this!
A: Here's what to say:

1. You are using tax pooling via Tax Management NZ
2. Can they please note this on your file
3. Ask IRD to call us as your accountants if they require any further information

You make your payments into a bank account administered by an independent trustee, Guardian Trust. Guardian Trust also oversees the TMNZ tax pool account at IRD in which your date-stamped payments are held. At no stage does TMNZ have access to your funds.
​
You can view your account online and request that any amounts held in the tax pool be transferred to your IRD account at any time.

If you would like us to arrange your tax pooling or for more information, please see this page or contact us now.