May Book 2020 May 2020 - Page 25

t for Sole Traders QUESTION: Who can get it? ANSWER: You must be a New Zealand citizen or permanent resident, and be based in New Zealand, and: • Arts organisations (which include collectives and groups) can co-ordinate and submit applications on behalf of individual members. Each individual must complete a separate application form (including the declaration) and submit their New Zealand bank account. • You must have a track record of experience and success — this means that as an artist or arts practitioner, including as part of an arts organisation (including collectives and groups), you must have: - recognition from peers or experts - specialised training or practical experience - achieved a degree of critical or sales success. You must have successfully applied to WINZ for the COVID-19 WINZ Wage Subsidy before receiving an Emergency Relief Grant and must provide evidence of this (for example, a screenshot of your bank account, showing your name, account number and the WINZ payment). You must show that your main source of income is derived from arts practice. You can show this by supplying an artistic CV (include links to your website or social media platform if you have one), in addition to information about recent projects or activity. You must declare if you have received or were expecting to receive income or support from a Toi Uru Kahikatea or Toi Tōtara Haemata organisation for the period 1 March and 30 June 2020. You must declare if you are part of an application from a Toi Uru Kahikatea or Toi Tōtara Haemata organisation to Creative New Zealand’s Short-term Relief for investment clients. If you are unsure if this applies to you, please check with the relevant organisation before submitting your application. QUESTION: How much is the Creative NZ Emergency Relief Grant? ANSWER: This grant is basically a top up of the wage subsidy with a maximum of $4,220.40 (plus GST) per person. When the Creative NZ Emergency Grant is received it should be coded to GRANTS RECEIVED and if you are GST registered, then it includes GST. Grants Received are taxable income. QUESTION: I think I will make a loss in the year ended 31 March 2021. Should I still pay my provisional tax? ANSWER: If you cannot afford to pay your provisional tax then don’t. The Government is drafting legislation so that you can use your 2021 tax loss to reduce your income for 2020, and potentially receive some of the provisional tax back that you have paid. This legislation has not yet been finalized so no further details are available at this stage but it is a good idea to talk to your accountant about how this may work for you. NZ MUSIC COMMISSION MAY BOOK 2020 • 25