September Newsletter

Posted 2 years, 2 months ago by Maggie Waine    0 comments

Hi everyone!  Hope that business and life is ticking along nicely and everyone is enjoying the moments of sunshine.  This newsletter covers a range of articles that have come to us by way of the Inland Revenue and CCH Trust.

Happy reading.  As always, if you have any questions about your business or what you read here in the article - please contact us on 0800 628 539.

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KIWISAVER HOMESTART APPLICATIONS

From April to July 2015 more than 1,600 people have been successful in securing a KiwiSaver HomeStart grant to purchase their first home, since the new scheme was introduced on 1 April 2015. 

Housing New Zealand receive around 500 applications a week and  are focused on processing them as quickly as possible. 

However, they have found that some of the applications they receive aren't fully completed or don't have the correct documentation attached to them. This can cause further delays, which causes unwanted stress or makes hitting the processing timeframes much harder.

To avoid these delays, here are some points to check before submitting an application:

  • Ensure that the income certificates are for the last 12 months, not the last financial year
  • Ensure that income certificates are provided for all named/intended purchasers
  • Provide a detailed KiwiSaver contribution statement that covers the period your client has contributed to KiwiSaver
  • Provide evidence of a deposit of at least 10% of the purchase price, if there is already a signed agreement for sale and purchase
  • Ensure the correct application has been completed


Remember that Housing New Zealand require a minimum of four weeks/20 working days from receiving an application through to paying out the KiwiSaver HomeStart grant. 

Also, please ensure that if you apply for the grant to meet the financial conditions of your agreement for sale and purchases, you allow at least 10 working days prior to the unconditional date.

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INLAND REVENUE CUTS PAPER COSTS

Inland Revenue has recently introduced a new service where correspondence to its customers will be provided electronically in their myIR account as eDocuments. Taxpayers using myIR online can log on and find all their tax related documents easily and in one place. This is intended to make the need for paper and postage redundant.

Inland Revenue spokesperson Davy Udy said “the paper saving project will not only reduce paper but improve and modernise customer communications. Already more than three quarters of a million documents have been made available to customers as eDocuments instead of paper since the service has been introduced.”

Customers will receive an automatic email alert when a new statement or notice is sent to their myIR account. Customers will also be able to search for documents dating back to April 2010, and receive documents faster than by traditional mail.

Customers can use myIR to:

• Access their IRD number

• Keep address and banking details up to date

• Request a tax return

• File a GST return

• Check child support transaction details

• Check student loan transaction details

• Check working for families tax credits

The following can have a myIR account:

• Individuals with a personal IRD number

• Sole traders operating under a personal IRD number

• Business owners

For security reasons, an employee cannot register for an account on behalf of a business.

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CONSTRUCTIVE TRUST IN RESPECT OF CONTRIBUTIONS WIFE MADE TO TRUST PROPERTY

Judd v Hawke’s Bay Trustees Company Limited [2014] NZHC 3298 was a property relationship claim based on constructive trust by a former wife in respect of modest contributions to the home property that was owned by trustees of a trust of which the former wife was not a beneficiary.

Background

Ms Judd (the plaintiff) and Mr Hodgkinson were married in November 2005. Both had been married before and brought children to the relationship. The marriage lasted six and a half years and the parties are now divorced. Following the ending of a previous marriage shortly before 2003, Mr Hodgkinson restructured assets and established the Richard Hodgkinson Family Trust (the trust) for the benefit of himself and his children and of which he and Hawke’s Bay Trustee Company Ltd (HBTC) were trustees (the defendants). HBTC was a corporate trustee operated by an accounting firm, in particular a Mr Dine (professional trustee) who had provided professional accounting services to Mr Hodgkinson.

Mr Dine was a relatively hands-on professional trustee, holding the trust cheque book of which he was a co-signatory and who met with Mr Hodgkinson regularly to discuss Mr Hodgkinson’s trusts or business affairs. The trust held amongst other things, the home property in respect of which Ms Judd claimed a 40% interest. Ms Judd made no other claim in respect of the other trust assets. The home property, a lifestyle block, was purchased by the trust in 2003 and then renovated, most of which was complete by the time of the marriage. The property had a value of $820,000 in 2012. Ms Judd brought a contribution to the relationship of $50,000 being the proceeds of sale of her home property, a significant proportion of which was used to meet final renovation work on the property. Mr Hodgkinson made equivalent payments to or for Ms Judd.

High Court

The High Court followed the principles espoused in the Court of Appeal decision in Murrell v Hamilton [2014] NZCA 377. This meant that the decision for the court became whether the professional trustee, Mr Dine, had abjured his trust responsibility to the spouse trustee, Mr Hodgkinson?

The evidence showed that Mr Dine was a far more hands-on professional trustee than was the case for the one in Murrell v Hamilton (above), however, Mr Dine had delegated the trust’s decision making in respect of all matters to do with the maintenance, upkeep and renovations of the home property to Mr Hodgkinson.

The grounds for a constructive trust were found to have been made out, and Mr Dine was found to have abjured certain trustee responsibilities such that both trustees were liable for Ms Judd’s expectations. She was awarded the quantum of $65,000 based on the fact that her contribution was in kind rather than monetary. Ms Judd’s contribution to the property amounted to the sum of $10,000 per year for each year of the marriage [70].

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HAPPY BIRTHDAY

Its David's 38th on Thursday :-)

Much loved hard working Daddy, and husband.  There through thick and thin and always on the end of the phone for our clients.

Daddy & Zara (February 2015)
Daddy & Zara (February 2015)
Daddy & Heath (February 2015)
Daddy & Heath (February 2015)

David & Maggie (Sydney April 2015)
David & Maggie (Sydney April 2015)

Happy Birthday David

Everyone having a snooze (May 2015)
Everyone having a snooze (May 2015)



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