Posts By :

Lee Stace

Image: IRD interest calculations
  • Lee Stace
  • No Comments

Failing to pay cents costing thousands in IRD interest
Failing to pay cents costing thousands in IRD interest 1344 820 Lee Stace

A $2400 IRD interest bill after underpaying an instalment of provisional tax by a mere 30 cents. This is just one example of how the programming issues within IRD’s system are currently affecting interest calculations for provisional taxpayers. IRD says it has seen cases where taxpayers have lost access to the safe harbour provision because…

read more
Image: 28 August provisional tax reminder.
  • Lee Stace
  • No Comments

28 August provisional tax: Don’t forget IRD interest rise
28 August provisional tax: Don’t forget IRD interest rise 1200 630 Lee Stace

For many, the 28 August provisional tax instalment is the first for the 2020 tax year – and failing to pay on time will cost taxpayers more money. That’s because the interest IRD charges when tax is unpaid or underpaid is increasing from 8.22 percent to 8.35 percent. The new rate will apply the day…

read more
Image: Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill
  • Lee Stace
  • No Comments

Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill: Have your say on provisional tax changes
Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill: Have your say on provisional tax changes 1200 630 Lee Stace

The Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill contains six amendments that IRD says will clarify and align provisional tax legislation with its system. The proposed amendments are: Eliminating the requirement to estimate at the final instalment date for provisional tax Clarifying the ‘lesser of’ calculation of interest for standard uplift taxpayers Clarifying the…

read more
Image: Walker & Co Real Estate owners Lee And Marc Walker
  • Lee Stace
  • No Comments

Walker & Co Real Estate remedy big provisional tax problem
Walker & Co Real Estate remedy big provisional tax problem 1200 630 Lee Stace

Provisional tax is not without its challenges. Marc and Lee Walker from Walker & Co Real Estate know this all too well. The husband and wife duo do not take umbrage at paying tax. No siree Bob. It’s part and parcel of being in business. And they accept it ain’t going away. But they do…

read more
Image: Accounting Income Method (AIM)
  • Lee Stace
  • No Comments

Accounting income method: When cashflow doesn’t match accounting profit
Accounting income method: When cashflow doesn’t match accounting profit 1200 630 Lee Stace

IRD’s marketing material boasts the accounting income method (AIM) means taxpayers only pay provisional tax when they make a profit. But what it neglects to convey is what happens if an AIM user making a profit has no money in their bank account to pay tax when it is due. The answer? Bad things. IRD…

read more
Image: IRD interest
  • Lee Stace
  • No Comments

IRD interest changes
IRD interest changes 1200 630 Lee Stace

The cost of getting provisional tax payments wrong is about to increase next month – but not with TMNZ. Indeed, IRD interest rates are going to change and the news is not good for taxpayers. IRD is increasing the interest it charges taxpayers if they underpay or fail to pay their tax on time from…

read more
Image: New provisional taxpayer first year trading
  • Lee Stace
  • No Comments

First year of trading and provisional tax
First year of trading and provisional tax 1200 630 Lee Stace

What are a taxpayer’s provisional tax obligations in their first year of trading? This is a question we receive a lot. In fact, there is certainly a lot of confusion out there. As most know, their first year of trading is not tax-free. However, when income tax is due and payable depends on a taxpayer’s…

read more
Image: Tax Policy Scholarship Competition
  • Lee Stace
  • No Comments

Tax Policy Scholarship Competition finalists
Tax Policy Scholarship Competition finalists 1200 801 Lee Stace

A negative income tax coupled with a flat tax rate for individuals and the creation of a trusted taxpayer regime. These are among the ideas judges will hear as part of the Tax Policy Scholarship Competition. A tax on biogenic methane emissions and freshwater as well as reforming the R&D tax credit regime are the…

read more
Photo: Prodigy Hair Industry's Krystle Walker
  • Lee Stace
  • No Comments

Prodigy Hair Industry cuts tax stress
Prodigy Hair Industry cuts tax stress 1920 1282 Lee Stace

Krystle Walker from Prodigy Hair Industry loves cutting and styling hair. She does not love provisional tax. That’s why she utilises the service of TMNZ. They cut away the stress this causes her so she can focus on running and improving her salon.   But more on that in the coming paragraphs. First, some background…

read more
Image: Tax pooling transfers delay
  • Lee Stace
  • No Comments

Long delays expected for tax pooling transfers
Long delays expected for tax pooling transfers 1200 630 Lee Stace

IRD is taking longer to process tax pooling transfers for the 2018 tax year. They advise they are not processing these automatically as their system is not remitting interest and late payment penalties for taxpayers using tax pooling. As such, they are flagging these accounts so their tax pooling team can edit them manually. IRD…

read more
Enter your
text here
X