20 Years On continued
In the beginning the work involved was very much tax compliance but over the years that focus has shifted slightly to planning, structuring, education and support as we see compliance becoming more a by product of what we do. Over the past twenty years, I can boast a very good staff turn over record, having employed seven support staff in this period:
Two of them have gone on to become qualified Accountants in their own right, one works for me remotely, another is now employed by my wife, and now works in Palmerston North, another has progressed to become part of the accounting team, three Accountants . Shawn my son, who works alongside me as is part of my succession plan, and another who was part of the practise for a very long period, left and has since joined me in another business venture. I was recently asked could GST be claimed on assets purchased or acquired before starting business Clients often start a business, and either buy or bring in their own assets. Can they claim GST on these? The GST on assets bought in contemplation of the incorporation of a company going into business can be claimed, provided they have not been owned for more than 6 months and they are being on-sold to the company at cost. If an individual (sole trader) starts a business, no GST can be claimed on assets bought prior to GST registration except via a GST adjustment calculation that apportions the GST claim based on the period owned prior to registration. If the asset is brought into the business and is later sold, GST has to be paid on disposal irrespective of whether GST was originally claimable or not. If GST has been claimed under the adjustment calculation adjustment will be required on disposal.
By Dennis O’Grady
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Posted on Sat, 1 November 2014
by Dennis O'Grady