Don't be an ostrich
2461POSTED:
GRA Blogs
Articles by John Rowe
The media is currently giving high exposure to the issues facing dairy farmers - dairy payments down, farm incomes dropping, and farms failing financially with banks calling in receivers and liquidators. The news seems bleak. At GRA we realise a farm is more than a business; it is also a home, and the idea of losing your home is never a palatable one. But it is important for farmers, and others facing similar dilemmas, not to turn a blind eye and hope the problem will go away.
Rather, it is an opportune time to look at asset protection to ensure the potential downside is limited should the worst happen. It is bad enough to lose your business, but to lose all your assets as well can be devastating. The good news is, with the right asset protection structures in place, your assets can be protected.
Good structures put people in a stronger position to negotiate with financers, but it is important to address this sooner rather than later. Don’t leave it to the last minute, as many structures need time before they become 100% effective.
The same advice applies to people who may be facing challenges with the IRD. The IRD are very aggressive in going after people who fail to pay their tax, so you need to be proactive if you are failing to meet your obligations. (I wrote a blog about debt with the IRD, in March 2014.) Ensure you have the correct structures in place, and get some help as soon as you start getting behind. The vast majority of the time things can be resolved or greatly improved, but you need to act quickly before the situation gets out of hand. We know of a number of people who didn’t take this advice, and they have ended up doing community service, in prison, or with ankle bracelets courtesy of Her Majesty.
Whether you are a dairy farmer facing hard times, or a business owner struggling to meet your tax obligations, put your hand up and get some professional help now. In saying that, be very wary of accountants who do not have expertise in this area – these situations need to be dealt with carefully and with specialised knowledge. Get in touch with us at GRA if you are facing such challenges – we have had a great deal of success in this area. However, the longer you leave it, the harder it will be to help you.
Rather, it is an opportune time to look at asset protection to ensure the potential downside is limited should the worst happen. It is bad enough to lose your business, but to lose all your assets as well can be devastating. The good news is, with the right asset protection structures in place, your assets can be protected.
Good structures put people in a stronger position to negotiate with financers, but it is important to address this sooner rather than later. Don’t leave it to the last minute, as many structures need time before they become 100% effective.
The same advice applies to people who may be facing challenges with the IRD. The IRD are very aggressive in going after people who fail to pay their tax, so you need to be proactive if you are failing to meet your obligations. (I wrote a blog about debt with the IRD, in March 2014.) Ensure you have the correct structures in place, and get some help as soon as you start getting behind. The vast majority of the time things can be resolved or greatly improved, but you need to act quickly before the situation gets out of hand. We know of a number of people who didn’t take this advice, and they have ended up doing community service, in prison, or with ankle bracelets courtesy of Her Majesty.
Whether you are a dairy farmer facing hard times, or a business owner struggling to meet your tax obligations, put your hand up and get some professional help now. In saying that, be very wary of accountants who do not have expertise in this area – these situations need to be dealt with carefully and with specialised knowledge. Get in touch with us at GRA if you are facing such challenges – we have had a great deal of success in this area. However, the longer you leave it, the harder it will be to help you.
John Rowe
Director
Business Accounting Services
© Gilligan Rowe & Associates LP
Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.
Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.
Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
Comments
Testimonials
Salesh is the best CA I have ever met in New Zealand so far. Period! The reason that I had fired my previous accountants is that they are so cheap. And they offer cheap advice. You need good and solid advice that can make you more money in the long run. And Salesh is the man who can deliver real results for you. Cheers to your success, Kind Regards - George Guo - ANZ BANK Senior Personal Banker
Property 101by Matthew Gilligan
Investing in residential property?
Put this at the top of your reading list.
If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.
Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.
- How to find the right property
- How to negotiate successfully
- Renovation do's & don'ts
- Property management
- Case studies and examples
- and much, much more...
Free Resources, Tools & Downloads
