TMNZ Blog

News & resources for business flexibility, cashflow and capital expenditure

Image: Dry conditions
Provisional tax relief during tough times 1200 630 Lee Stace

Provisional tax relief during tough times

As businesses look to conserve cash in response to drought, flooding or coronavirus, there’s an IRD-approved way to defer payment of their 2020 provisional tax until June next year. Tax pooling lets taxpayers pay provisional tax at a time that suits their business, without facing interest and late payment penalties from the taxman. Why might…

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Coffee with Bernice at BLO Consulting 1200 630 Lloyd Evaroa

Coffee with Bernice at BLO Consulting

Tax is not the only thing business owners focus on, says Bernice Lo from BLO Consulting. She knows how they think. After all, she started her accountancy practice in 2007. Today, it is a thriving team of seven with another team overseas, making them available 24 hours a day during the work week. Their clientele…

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Standard uplift: When 105 percent uplift payments are less than 110 percent payments 1200 630 Lee Stace

Standard uplift: When 105 percent uplift payments are less than 110 percent payments

IRD will sometimes apply the 105 percent standard uplift calculation (CY-1) retrospectively when determining what’s due and payable at each provisional tax instalment. This happens in situations where CY-1 payments turn out to be less than 110 percent uplift payments (CY-2). When this is the case, IRD’s system will automatically overwrite the CY-2 calculation once…

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Safe harbour tolerance being introduced 1344 706 Lee Stace

Safe harbour tolerance being introduced

A legislative amendment will allow taxpayers to remain in safe harbour if they underpay their provisional tax instalments by $20. Smaller taxpayers using the standard uplift method to calculate their payments have been losing the ability to take advantage of the interest concession provided by this rule when they underpay by small amounts. When this…

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Merry Christmas happy New Year from TMNZ 1200 630 Lloyd Evaroa

Merry Christmas happy New Year from TMNZ

The TMNZ office will close from the end of 23 December – 8 January to celebrate Christmas and the New Year. We will have limited availability from 24 December 2019 to 7 January 2020. We wish everyone a wonderful break and a good time with friends and family to mark the start of a new…

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Jucy Rentals Group say good bye to provisional tax stress 1200 630 Lloyd Evaroa

Jucy Rentals Group say good bye to provisional tax stress

They say you can’t make an omelet without breaking some eggs. In this context, a company cannot grow without taking some risks or investing in their business. Jucy Rentals Group’s day-to-day operations highly depend on cash in the bank. It faces a unique challenge when it comes to paying provisional tax. They have to account…

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Four reasons why accountants should consider tax pooling 1200 630 Lloyd Evaroa

Four reasons why accountants should consider tax pooling

Meet Andy. He is a builder who has run his own business for almost three years, with the current year reflecting he will make a substantial profit. He gets paid well and is smart enough to set aside the tax he owes with every cheque. However, the clients he is working for do not always…

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Coffee with Maria from The Tax Lady 1200 630 Lloyd Evaroa

Coffee with Maria from The Tax Lady

“Why would IRD allow you to do this?” This is the reaction of some of Maria Anderson’s clients when they hear about how tax pooling can help with provisional tax payments for the first time. Maria is one of the Directors at The Tax Lady in Upper Hutt, north of Wellington. Their clients range from…

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IRD agrees to stop contacting clients directly 1200 630 Lee Stace

IRD agrees to stop contacting clients directly

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

Don’t let 15 January provisional tax cause stress

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 1200 630 Lee Stace

Remember tax pooling as IRD audit activity increases

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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Meet Neil Bhattacharya 632 419 Lloyd Evaroa

Meet Neil Bhattacharya

Neil Bhattacharya is our Head of Client Services at TMNZ. Formerly the Client Services Manager, his new position reflects the Client Services Team’s responsibility of being the first point of contact for our clients and making sure NZ’s biggest tax pool is the best. The goal for the team is to get clients what they…

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Uplift payments required for safe harbour eligibility 1200 630 Lee Stace

Uplift payments required for safe harbour eligibility

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 1344 897 Lee Stace

AIM and tax pooling

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 1344 706 Lee Stace

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

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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How to find a great accountant: six qualities to look for 1200 630 Lloyd Evaroa

How to find a great accountant: six qualities to look for

Thousands of independent business owners have an awful habit. While steadily pedaling up the mountain of expansion, new hires, building a great brand, and newfound social media fame, these business owners attempt to juggle their tax payments and financial accounts with their little remaining time. “We know our business best, so we’d may as well…

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

Failing to pay cents costing thousands in IRD interest

**Update on 19 December 2019** IRD are fixing this issue and introducing a $20 threshold so taxpayers aren’t thrown out of safe harbour and charged use-of-money interest if they short pay provisional tax by a few cents. They are in the process of fixing up accounts that were charged in these situations. Original article published…

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

28 August provisional tax: Don’t forget IRD interest rise

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 1200 630 Lee Stace

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

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 1200 630 Lee Stace

Walker & Co Real Estate remedy big provisional tax problem

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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