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Tax rules are difficult

Tangled tax webs weave confusion by Rodney Hide is a good commentary on why:

  1. I advise my clients to be cautious;
  2. I advise my clients that a company/business can spend anything its Directors/Shareholders consider is a proper business expense (ie just because it is not deductible does not mean it is drawings);
  3. I advise my clients I am not a tax expert - there is not enough time in the day for any one person to claim they know all this stuff.

Having said all that business people have to get on and run their businesses.  So all that we can hope for is that parliament would not have contemplated the IRD being harsh on anyone for unintentional or trivial errors - ie being harsh on a taxpayer who has been straight up as that would be judged by an average kiwi.

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