Accountants

The 15 January provisional tax catch

The 15 January provisional tax catch 1024 683 TMNZ Blog

Did you wait to file after 17 January? Inland Revenue raised a provisional tax payment issue in the Tax Intermediaries update on 27 January 2022. Here we discuss the issue in more detail, as well as the help available to you if your clients are impacted.  Typically, for a client using the standard uplift method,…

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Managing business cashflow in uncertain conditions

Managing business cashflow in uncertain conditions 1024 431 TMNZ Blog

Looking back at 2021 In 2021 we learnt that emerging risks can quickly disrupt business operations, strategic plans and cashflow. The pandemic, combined with volatile markets and policy changes, put strain on New Zealand businesses. Revenues that were once predictable became unstable and COVID-19 related costs emerged. The business environment in 2022 So, what can…

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Payment options for 15 January provisional tax

Payment options for 15 January provisional tax 765 450 TMNZ Blog

One of the challenges of paying provisional tax in times of economic uncertainty is making a payment that is both appropriate and does not negatively impact your cashflow. Tax is one of the largest expenditure lines for a business, so you want to get it right. You don’t want to overpay, because that’s money sitting…

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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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