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Lee Stace

Image: IRD contacting clients

IRD agrees to stop contacting clients directly

IRD agrees to stop contacting clients directly 1200 630 Lee Stace

Accountants have a fundamental role to play in the tax system and IRD is putting measures in place to limit direct contact with their clients. These are the words of IRD commissioner Naomi Ferguson. Her announcement – made during her address at the annual Chartered Accountants Australia and New Zealand (CA ANZ) Tax Conference in…

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Image: 15 January provisional tax

Don’t let 15 January provisional tax cause stress

Don’t let 15 January provisional tax cause stress 1200 630 Lee Stace

Paying 15 January provisional tax can be stressful and a pain in the derrière for many businesses – but it doesn’t have to be. There is an IRD-approved service that allows taxpayers to make this payment when it suits them. To understand why this might appeal, one must understand why 15 January provisional tax can…

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Image: IRD audit in hidden economy

Remember tax pooling as IRD audit activity increases

Remember tax pooling as IRD audit activity increases 1200 630 Lee Stace

IRD ramping up its investigation activity by targeting businesses under-reporting cash sales or paying staff under the table is an opportune time to remind taxpayers that tax pooling can assist with audits or voluntary disclosures. The hidden economy is estimated to be worth close to $1 billion. That’s why IRD is cracking down on cash…

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Image: Safe harbour provision.

Uplift payments required for safe harbour eligibility

Uplift payments required for safe harbour eligibility 1200 630 Lee Stace

Provisional taxpayers cannot use the safe harbour provision if they fail to make their standard uplift payments on time and in full. However, tax pooling can fix this. Safe harbour – what it is and the criteria Safe harbour is a concession whereby IRD will not charge interest between a taxpayer’s final provisional tax instalment…

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Image: AIM and tax pooling

AIM and tax pooling

AIM and tax pooling 1344 897 Lee Stace

Legislation prevents taxpayers from using tax pooling to pay AIM provisional tax instalments. We are issuing this reminder as IRD notifies us they are seeing several tax pooling transactions for these types of payments. Section RP17B (2)(a) Income Tax Act 2007 says an amount held in a tax pooling account on behalf of a taxpayer…

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Image: Taxation (Kiwsaver, Student Loans, and Remedial Matters) Bill

TMNZ’s submission on Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill

TMNZ’s submission on Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill 1344 706 Lee Stace

TMNZ supports all but one of the proposed provisional tax amendments in the Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill. We made a submission on the Bill last week after receiving feedback from clients. In it, we share our thoughts on the following proposed amendments to provisional tax: Eliminating the requirement to estimate at…

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Image: IRD interest calculations

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…

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Image: Safe harbour provision.

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…

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Image: Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill

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…

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Image: Walker & Co Real Estate owners Lee And Marc Walker

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…

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