Accountants

Bright-line test: Don’t get caught by ‘change-of-use’ rule fishhook

Bright-line test: Don’t get caught by ‘change-of-use’ rule fishhook 1200 630 TMNZ Blog

Anyone who lives away from their main home for more than a year will be liable to pay income tax on any profit they make from the sale of a residential property sold within the new bright-line period. That’s because of the introduction of a ‘change-of-use’ rule that came into effect when the Government amended…

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Seller beware – IRD bright-line campaign update

Seller beware – IRD bright-line campaign update 1200 630 TMNZ Blog

Inland Revenue (IRD) will soon begin issuing letters to taxpayers within a month of them selling a residential property. These will be sent as soon as the tax department identifies a transaction that potentially falls within the bright-line rules, to ensure people are aware of any possible tax obligations. IRD says initially there will be…

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Can AIM taxpayers use tax pooling?

Can AIM taxpayers use tax pooling? 1200 630 TMNZ Blog

A taxpayer cannot use tax pooling to defer payment of, or settle, provisional tax instalments calculated under the accounting income method (AIM). However, Tax Management NZ (TMNZ) can help AIM taxpayers with terminal tax or when they receive a notice of reassessment. What does tax pooling legislation say about AIM? Legislation in the Income Tax…

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Audit claim data highlights level of IRD’s behind-the-scenes activity

Audit claim data highlights level of IRD’s behind-the-scenes activity 1200 630 TMNZ Blog

Inland Revenue (IRD) is still actively reviewing taxpayers despite COVID-19 and the various business disruptions the pandemic has caused in the past 12 months, according to figures released by Accountancy Insurance. They saw a 31 percent increase in claims in all categories during the 2020-21 financial year compared to the 2019-20 financial year. In terms…

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Commissioner’s discretion for tax pooling

Commissioner’s discretion for tax pooling 1200 630 TMNZ Blog

A provision within legislation allows taxpayers to use tax pooling for certain income tax or RWT voluntary disclosures where no return has been previously filed. This is known as Commissioner’s discretion. And it’s worth seeking if a taxpayer satisfies all relevant criteria (see below), as settling these underpaid tax types through an approved tax pooling…

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Miscalculated your tax loss carry-back? Don’t worry – help is at hand

Miscalculated your tax loss carry-back? Don’t worry – help is at hand 1200 630 TMNZ Blog

Tax pooling can reduce the interest cost a taxpayer faces by up to 30 percent if they have overestimated their loss under the temporary tax loss carry-back scheme. Under the temporary Inland Revenue (IRD) scheme, those who expect to make a loss in the 2019-20 or 2020-21 income year can estimate that loss and use…

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Partnership with ATAINZ

Partnership with ATAINZ 1024 538 TMNZ Blog

March 29, 2021 — Tax Management NZ today announces a partnership with The Accountants and Tax Agents Institute of New Zealand (ATAINZ). The partnership will advance TMNZ’s ambition to accelerate the adoption of tax pooling solutions amongst taxpayers who would benefit from genuine provisional tax flexibility. In addition, TMNZ is announcing plans to commence offers and opportunities…

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Property tax changes announced – what you need to know

Property tax changes announced – what you need to know 1200 630 TMNZ Blog

Property investors will no longer be able to offset their interest expenses against rental income when calculating their tax. This is one of three tax measures announced today by the Government as it attempts to cool the overheating New Zealand housing market. The others include: Extending the bright-line test to 10 years.A ‘change-of-use’ rule within…

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How tax agents can kick the hourly billing habit

How tax agents can kick the hourly billing habit 1200 630 TMNZ Blog

It doesn’t matter how many times you hear this question; there aren’t many other questions quite as capable of putting an expert practitioner on the spot like a butterfly pinned to a display cabinet than the dreaded: ‘What’s it going to cost?’ For accountants, lawyers and others who sell their expertise, it sometimes seems the…

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Terminal tax isn’t due until 7 April – so why’s IRD already charging interest?

Terminal tax isn’t due until 7 April – so why’s IRD already charging interest? 1200 630 TMNZ Blog

Just because a terminal tax amount for the 2019-20 income year is not due and payable until 7 April does not mean Inland Revenue (IRD) is not already charging interest. Why is this happening, you may be asking? There could be several reasons. The method used to calculate your provisional tax payments, your income tax…

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