Auditing to many people is a dark and mysterious art. The very presence of an auditor and the fact that you have to pay them to put you under scrutiny you don’t really want to enforce Anti Money Laundering laws you sure as heck didn’t vote for, is enough to raise your anxiety levels and have you reaching for your blood pressure pills. But as with the art of negotiation, the key to a great outcome with your AML audit is first to understand exactly what your auditor knows and is tasked to do and what they are going to be looking to see. There are two key things that your auditor will focus on. Firstly, they will be looking to determine if your risk assessment document complies with section 58(3) of the act. Specifically, they will be looking to assess the nature and extent of the AML / CFT risk assessment and its application in your business. Secondly, they will be seeking to determine whether your AML / CFT programme that is based on your risk assessments complies with section ... Read More

On occasion, my auditing career and travel have aligned to offer adventure in far-flung places. I seize these opportunities. Recently, I threw caution to the wind and accepted an engagement of a Kiribati Trust. The trust's aim is to protect the remaining pristine environments in Micronesia and promote awareness of ecological conservation. But to achieve this, I must first journey to one of the least environmentally sustainable places on the planet, Tarawa Atoll, Kiribati where the trust keeps offices. This is what I experienced. Tarawa Atoll is a tiny strip of Coral sand, lying 3.5 hours flying North of Fiji and sitting just north or the Equator in Micronesia. It is one of the farthest-flung islands in Oceania. Kiribati itself, of which Tarawa is the capital, is comprised of 33 atolls, 21 of which are inhabited. Incredibly, the atolls are home to 103,500 Micronesian souls, baking under the equatorial sun. Fifty per cent of Kiribati’s total population lives on south Tarawa ... Read More

We have recently summarised some basic information for doing business in New Zealand. This guide is to help overseas interested parties gain a general understanding of the business and taxation environment in New Zealand. You can read the full guide here: https://kreston.com/wp-content/uploads/2016/10/New-Zealand.pdf Setting up your Business in New Zealand Issues to consider New Zealand (NZ) has a relatively deregulated and open economy and is consistently ranked as one of the easiest countries in which to do business.   The World Bank Doing Business 2018 Report ranks NZ first in the world for ease of doing business. As well as simplicity the tax system has the major attractions of predictability and fairness. Of course one of the major attractions of NZ is the more relaxed living philosophy and lifestyle which seems to be more obtainable than in many other countries. However local knowledge of the legal, accounting and taxation framework is essential when looking to ... Read More

Proposed changes to the thin capitalisation for loans: Draft Legislation has been introduced to limit the use of debt financing as a means to shift profits out of New Zealand as part of the Government’s wider BEPS tax reform package The new legislation will apply New Zealand entities who have overseas loans (existing and new).  The new rules once enacted will be effective for income years beginning on or after the 1 July 2018.  Majority of these changes will affect loans over NZ$10 million.  However, some changes to thin capitalisation calculations for loans less than NZ$10 million are also proposed in this legislation. The proposed changes to the thin capitalisation for loans look at interest-bearing debt over total assets less non-debt liabilities currently it is interest-bearing debt over total assets.  So current loans which previously did not need to look at thin capitalisation may need to look at these rules to see if thin capitalisation adjustment is required. What should ... Read More