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Christmas crackdown - Giles & Liew Chartered Accountants

Christmas Crack Down

December 13, 2016

If you are thinking of buying Christmas gift baskets, wine, ham or restaurant vouchers for your clients or staff – beware!  The IRD have stated that they will only allow a 50% deduction for your Christmas function or work gifts if provided to people such as employees, clients, suppliers or prospective clients and suppliers.

Previously the IRD allowed a 100% deduction for costs incurred on providing gifts to clients and suppliers that contained food or beverages.  Now, however, only 50% of such costs will be tax deductible and the IRD considers that where such gifts such as gift baskets contain non-food or beverage items, costs must be apportioned.  If this policy is not adhered to, this may result in a tax shortfall penalty being imposed.

For further information or to discuss this further, please call your Giles & Liew Account Manager.

About Kylie Liew

Avatar photoKylie is Managing Director and Qualifying Principal of Giles & Liew Chartered Accountants. Her combined experience in Accounting and Business Advisory, together with leadership of business transformation projects and the development of the firm's Digital Transformation services makes her well-placed to help New Zealand businesses grow and succeed in today's ever changing digital business environment. Kylie understands the complexities of business ownership in New Zealand and works with clients to formulate business strategies to help them achieve sustainable growth.

Digital disruption of the Accounting industry presents a unique opportunity to redefine the role of the Business Advisor.  Kylie is committed to exploring innovative ways to achieve growth and create success. She helps clients turn their vision into real value.

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