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COVID-19: IRD extends tax pooling deadline 1200 630 Lee Stace
  • Lee Stace

COVID-19: IRD extends tax pooling deadline

Updated 19 June 2020 Anyone impacted by COVID-19 will have 365 days after their terminal tax date to settle 2019 income tax arrangements with TMNZ, subject to meeting certain criteria. IRD has used its new discretionary powers in s6I Tax Administration Act 1994 to extend the legislative deadline after recognising the cashflow difficulties some taxpayers…

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How filing late and losing EOT impacts provisional tax payments 1200 630 Lee Stace
  • Lee Stace

How filing late and losing EOT impacts provisional tax payments

Losing extension of time (EOT) due to filing income tax returns late means someone can only use 105 percent of the previous year’s residual income tax (RIT) when calculating their provisional tax payments. That’s because if a taxpayer fails to provide their returns(s) on time, IRD’s system defaults to using the date by which they…

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Tax loss carry-back scheme: Important considerations 1200 630 Lee Stace
  • Lee Stace

Tax loss carry-back scheme: Important considerations

Standard imputation (ICA), ownership continuity and grouping rules still apply under the new tax loss carry-back scheme, while anyone who overestimates their loss will face IRD interest (UOMI) from the date of their first provisional tax instalment for the previous year. Moreover, company profits already paid out via shareholder-employee salaries or dividends are unable to…

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Small Business Cashflow Loan Scheme: Do your homework first 1200 630 Lee Stace
  • Lee Stace

Small Business Cashflow Loan Scheme: Do your homework first

A former economist at one of New Zealand’s largest banks has a warning for someone considering the Small Business Cashflow Loan Scheme: It could limit your future borrowing capacity. That’s because banks may decline lending to anyone who has this type of debt on their books, as IRD may have first collection rights as a…

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TMNZ virtual roadshow: Tony Alexander talks post-COVID-19 economic recovery 1200 620 Lee Stace
  • Lee Stace

TMNZ virtual roadshow: Tony Alexander talks post-COVID-19 economic recovery

The increase in New Zealand’s net debt to GDP ratio over the next four years is not the bogeyman some are making it out to be, nor will the Government necessarily have to increase taxes to pay off what they are borrowing. That’s according to one of New Zealand’s leading and respected economists, Tony Alexander,…

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Image: IRD system
IRD system issues affecting tax pooling 1200 630 Lee Stace
  • Lee Stace

IRD system issues affecting tax pooling

IRD is working to resolve the problem of its system incorrectly sending grace period letters to taxpayers flagged as using tax pooling. However, they have fixed the issue which was seeing someone’s GST refund being automatically applied to their provisional tax. Here’s what you need to know about both problems. Plus, we also highlight some…

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TMNZ Roadshow Hero Image
Webinars to get businesses geared up for the post-COVID-19 environment 1344 639 Lloyd Evaroa
  • Lloyd Evaroa

Webinars to get businesses geared up for the post-COVID-19 environment

From May until October this year, TMNZ will offer a new webinar that focuses on a different topic that is sure to provide value in a post-COVID-19 environment. Whether you are a business owner or tax agent or curious to know what the future will look like, be sure to come along and invite your…

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IRD adjusts UOMI rates 1200 630 Lee Stace
  • Lee Stace

IRD adjusts UOMI rates

Someone will now pay the taxman less interest (UOMI) if they underpay their tax – but literally receive nowt if they overpay. That’s the key takeaway after IRD announced it is adjusting its UOMI rates today. They are lowering the interest they charge for underpaid tax from 8.35 percent to seven percent. IRD’s credit interest…

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UOMI remission guidance: IRD overlooks provisional tax scenario 1344 814 Lee Stace
  • Lee Stace

UOMI remission guidance: IRD overlooks provisional tax scenario

Question: What is the amount on which IRD will remit interest (UOMI) at the date of the final provisional tax instalment if someone outside of safe harbour is unable to pay on time due to COVID-19? The answer: We cannot say for certain as this is a scenario IRD has yet to address in its…

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COVID-19: How tax pooling can still help taxpayers 1344 908 Lee Stace
  • Lee Stace

COVID-19: How tax pooling can still help taxpayers

IRD may be taking a more flexible approach in terms of its interest (UOMI) remission for taxpayers grappling with the financial impact of COVID-19 – but any request for relief will still be at its discretion and on its terms. As such, an IRD-approved tax pooling provider such as Tax Management NZ (TMNZ) can assist…

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COVID-19: Clarification around UOMI remission for 2019 terminal tax 1200 630 Lee Stace
  • Lee Stace

COVID-19: Clarification around UOMI remission for 2019 terminal tax

IRD will only remit interest (UOMI) for terminal tax after 7 April 2020 if a taxpayer was unable to make this payment on time due to COVID-19. It means anyone who is accruing UOMI on unpaid tax from the date of their final provisional tax instalment – or earlier dates, for that matter – for…

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Harrison Grierson mitigates provisional tax risk 1200 630 Lee Stace
  • Lee Stace

Harrison Grierson mitigates provisional tax risk

For Matthew Fleming, provisional tax is risky business as it requires a degree of crystal-ball gazing and guesswork. However, he chooses to mitigate that risk by depositing these payments into Tax Management NZ’s tax pool account. It’s a “no-brainer” because it gives him a better return if he overpays provisional tax and reduces his interest…

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Coffee with Tsarina at Shore Accounting Solutions 1200 630 Lee Stace
  • Lee Stace

Coffee with Tsarina at Shore Accounting Solutions

Tax pooling is part of the strategy Shore Accounting Solutions employs to assist businesses with managing cashflow and provisional tax payments. Tsarina Dellow (pictured above) is a chartered accountant at the two-person firm in Amberley, 45 minutes north of Christchurch. She says paying provisional tax on dates IRD prescribes can be hard on small- and…

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COVID-19: Additional tax relief announced 1200 630 Lee Stace
  • Lee Stace

COVID-19: Additional tax relief announced

IRD will have the flexibility to change statutory tax deadlines as part of new measures announced to provide relief for taxpayers during the COVID-19 pandemic. Plans are also afoot to introduce a temporary tax loss carry-back scheme and relax the tax loss continuity rules. Today’s announcement by the Government recognises taxpayers require more assistance during…

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COVID-19 update: Devil in the detail with UOMI remission 1344 756 Lee Stace
  • Lee Stace

COVID-19 update: Devil in the detail with UOMI remission

Update as at 14 April 2020 after IRD clarified its position following the publication of this article Someone who is struggling to pay tax on time due to COVID-19 will have to engage with IRD and agree to the terms of a payment plan if they want to receive a remission of interest (UOMI). Given…

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Image: Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill
Small provisional tax changes have big consequences 1200 630 Lee Stace
  • Lee Stace

Small provisional tax changes have big consequences

A standard uplift taxpayer who files an estimate at any time will now be treated as using the estimation method for that entire tax year – meaning IRD interest will accrue from date of their first instalment if the provisional tax they have paid is not enough to satisfy their residual income tax (RIT) liability.…

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Image: Taxation (Kiwsaver, Student Loans, and Remedial Matters) Bill
Latest updates + insights on COVID-19 UOMI concession 1344 706 Lee Stace
  • Lee Stace

Latest updates + insights on COVID-19 UOMI concession

Taxpayers physically unable to pay their tax on time due to COVID-19 can also apply to have IRD interest (UOMI) remitted. The COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill – which contains several other tax measures – was passed through all its stages under urgency in Parliament yesterday. The commentary for the Bill…

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COVID-19 update: IRD to waive UOMI on late tax 1200 630 Lee Stace
  • Lee Stace

COVID-19 update: IRD to waive UOMI on late tax

IRD will have the power to wipe interest (UOMI) if those significantly impacted by COVID-19 cannot pay their tax on time. The provisional tax threshold will also increase from $2500 to $5000. The changes were announced by Minster of Finance Grant Robertson as part of the Government’s fiscal and economic response package to COVID-19. A…

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New permission levels for dashboard users 1024 683 Lloyd Evaroa
  • Lloyd Evaroa

New permission levels for dashboard users

TMNZ now offers a read-only view of our dashboard that allows users to look at arrangements and tax balances without fear of mistakenly changing anything important. A member of a tax firm or a taxpayer can view quotes, transactions and balances as part of this new permission functionality. But more importantly, users with this type…

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Discounted interest rate of 3.95 percent for forestry and tourism 1200 630 Lee Stace
  • Lee Stace

Discounted interest rate of 3.95 percent for forestry and tourism

TMNZ is offering a special rate of 3.95 percent for cash-strapped businesses in the forestry and tourism industries who require more time to pay income tax due to coronavirus. The offer applies for 2020 provisional tax, as well as terminal tax payments relating to the 2019 tax year. We know that paying provisional or terminal…

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