Home' Christchurch Mail : July 11th 2013 Contents 41
CHRISTCHURCH MAIL, JULY 11, 2013
Local Trades & Services Directory
Why go to the Dump? Junkman comes to you!
Items too big
for the rubbish bin?
Or too heavy
for you to move?
comes to you
& takes it away
from as little as...
Contact us now
0800 JUNKMAN (0800 586 5626)
or cell 027 433 2111
*Prices vary depending on items - minimum charge $10
YES We are cost effective
681 Ferry Rd, Woolston
Ph: 389 3887 www.cteast.co.nz
35 Main South Road, Sockburn
Ph: 928 2150 www.ctwest.co.nz
Call your IT Professional now for
onsite service or workshop drop-off
Free quotes and friendly advice
Call today 021 141 4448
Cracked or damaged
We specialise in earthquake
repairs to concrete
Paths, patios and driveways
Foundations • Tilt panels
Brick and block walls
341 6117 • 65 Vickerys Rd • Wigram
Caring funeral services from the simplest
of cremations to full funeral services.
Pay your last respects,
not your life savings
Go online to chchcremations.co.nz
and see how simple things can be.
tile & grout restoration
Give those TIRED tiled
areas a new lease of life!
Restore your OLD
grout to NEW again!
* No mess!
* Unbelievable results!
Contact me today for a FREE quote or more information
0800 882 772 email@example.com
Professional Tile & Grout Cleaning
Grout Re Colouring
Tile & Grout Sealing
Tile & Grout Repairs
LAWNS & GARDENS
Garden and property maintenance
Rubbish and section clearing
Lawnmowing & edges
Lawns & Gardens
Fully insured, security screened owner operators
RECYCLE IT !!!
From as little as $10*
Phone: 0800 OLD IRON 0800 653 4766
Our recycle truck will call and collect kitchen, laundry,
heating, outdoor and other metal items cluttering your
garage yard or house
Contact us for details
Your site or our office
• Setting up accounting software to
suit your business
• Hands-on training
• End of year financial statements
• All IRD compliance - Income Tax, GST,
• Preparation of rental property accounts
• Free initial consultation up to half hour
Quickbooks & MYOB specialists
Phone: 03 384 7923
Home, Office and
Trained, insured & security screened owner/operators
Regular & one-offs
Need a refill?
9 KG gas bottle refills has never
been easier! Free delivery to your
door, same day service.
BottleSwap also specialise in:
• Gas heating hire & sales (home or work)
• Short or long term leasing options
• Gas appliance servicing
Place your order today!
P: 0800 166 619 I M: 027 328 3455
We come to you
Audio Installation Services
Wall mount your TV today!
Installation services of wall brackets through
to satellite dishes - from $99!
For all your installation requirements and advice,
call the professionals, visit our workshop or
WE COME TO YOU.
• Design, and
• Audio visual accessories
• Satellite & aerials
• Freeview TV specialists
6 Caton St, Sydenham, Christchurch
Ph: 03 943 2389 • M: 022 659 0878
E: firstname.lastname@example.org • www.itsavy.co.nz
• Complex tree removals • Felling
• Pruning • Topping • Hedging
• Transplanting • Contract climbing
• Firewood cutting • Chipping
• 3.5 Tonne excavator hire
• Stump grinding • Free quotes
Professional service, quality guaranteed
providing honest quotes.
Bryce Hannah -- Qualified Arborist
Cell: 021 2116 014
Complex rules govern
tax on foreign
By PAUL SHEEHAN
For a person who receives a foreign pension,
completing their tax return can be an unduly
Let's look at a fictional character whom we
shall call Fred.
Fred receives a pension from a fund operated
by an ex-employer in the United Kingdom and
he paid into the fund before emigrating to New
Zealand 30 years ago.
As a general principle, when a New Zealand
citizen receives foreign income, the gross
income and any foreign tax paid are converted
into New Zealand dollars. They are then
included in the New Zealand tax return and a
credit is claimed for the tax paid.
However, this general principle is modified by
the double taxation agreement between the UK
and New Zealand (DTUKNZ) and the rules under
the New Zealand Income Tax Act for taxing
The DTUKNZ awards the right to tax an
overseas pension to the country where the
person is permanently living.
The implication for Fred is that even though
the administrators of his UK pension are
deducting tax, he has to pay tax in New Zealand
on the gross income and cannot claim a credit
for the tax paid in the UK.
So, Fred has to write to HM Revenue &
Customs in the UK to claim a refund and get an
exemption so that the UK pension fund does not
deduct any tax off the payments to him.
At this stage, Fred has to work out which
set of rules apply to his pension payments.
Depending on the circumstances, his pension
can be taxed under the foreign investment
funds (FIF) tax rules, the dividend rules and
the trust distribution tax rules.
Looking at the FIF rules, they seek to arrive
at the total value of Fred's fund, and he is
taxed on any increase and not the amount
that he actually receives each year.
The FIF rules are, in essence, a capital gains
tax. The various valuation methods are: the
fair dividend rate, the cost method, the
comparative value method, the accounting
profits method, the branch equivalent
method and the deemed rate return.
Getting the information from a foreign
superannuation to apply any of these
methods can be difficult.
Under the FIF rules, if the valuation of
Fred's interest in the fund is less than
NZ$50,000, then he only has to pay tax on
the amount that he actually receives.
The Government recognises that the
taxation of foreign pensions is unduly
complex and is reviewing the current law.
You should contact your chartered
accountant or financial advisor before
making any kind of financial commitment.
Paul Sheehan is a chartered accountant.
Phone 355 2636 for more information.
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