Companies called to lend a hand
Insurance companies are being called on to front up and assist advisers who may have difficulties in complying with GST on insurance commission.
Monday, March 2nd 2009, 6:39AM
Institute of Financial Advisers (IFA) president Lyn McMorran is urging companies to provide advisers with the information they need to meet standards set by the IRD.
She says a handful of companies have already indicated they are prepared to step up and provide their advisers with comprehensive information in relation to GST on their income from insurance products, “But I would like to call on all companies to do the same.
“All advisers are under a great deal of pressure at this time with the ongoing economic crisis, having to reassure clients and try to anticipate the impact of legislation. While I realise that many companies are also suffering under these conditions, it just makes sense that most of them are far better resourced and have better access to database information that could make everybody’s life a great deal easier.”
Chair of the IFA’s Insurance Specialist Interest Group, Kathy Jarret, supports the initiative.
“For many advisers who have only recently joined the industry, this recession is the first time they have experienced the negative impact on world markets,” Jarret says. “Any assistance the insurance companies can give advisers to help them meet the requirements set by the IRD would be hugely appreciated and would take a great load off the shoulders of many people.”
Advisers not currently registered for GST and who are earning income subject to GST over the $60,000 threshold are required to GST register before 1 April and to comply with the IRD’s requests before 31 May.
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