Businesses

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Understanding provisional tax

Understanding provisional tax 1200 630 Lee Stace

What is provisional tax? How’s it calculated? When is it paid? What happens if you don’t pay? If these questions are currently occupying space in your head, don’t worry – we’re about to provide some answers. A brief overview Provisional tax breaks up the income tax you pay Inland Revenue (IRD) so that it is…

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Cashflow relief for farmers impacted by flood or drought

Cashflow relief for farmers impacted by flood or drought 1200 630 Lee Stace

Those impacted by flooding in Canterbury or drought elsewhere in New Zealand have another option to manage their cashflow. It’s called tax pooling. It lets taxpayers defer their upcoming provisional tax payments to a time that suits them, without incurring interest (currently seven percent) and late payment penalties from Inland Revenue (IRD). The service –…

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Make IRD interest, late payment penalties disappear

Make IRD interest, late payment penalties disappear 1024 683 Lee Stace

A missed or underpaid provisional tax payment often means a taxpayer is faced with a steep interest cost and potentially late payment penalties on top of what they owe. However, tax pooling can make that go away. A big frustration with Inland Revenue (IRD) is that it expects taxpayers to pay the correct amount of…

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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 Lee Stace

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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Working capital solution amid timber shortage

Working capital solution amid timber shortage 1200 630 Lee Stace

For builders wanting to ensure they have enough materials to complete the jobs they have scheduled over the coming months amid the current timber shortage, there’s a source of funding available to them that they may have overlooked if they require working capital. It’s their provisional tax payments. And a service called 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 Lee Stace

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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Taxing times: Are you facing a cashflow crisis in April and May?

Taxing times: Are you facing a cashflow crisis in April and May? 1200 600 Lee Stace

Tax represents cash and for all businesses, cash is king – especially in April and May. After all, Inland Revenue (IRD) is expecting two tax payments over these months. The first is due tomorrow (7 April). That’s called terminal tax. If you did not pay enough tax during the 2019-20 income year, you will be…

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Property tax changes announced – what you need to know

Property tax changes announced – what you need to know 1200 630 Lee Stace

Property investors will no longer be able to offset their interest expenses against rental income when calculating their tax. This is one of three tax measures announced today by the Government as it attempts to cool the overheating New Zealand housing market. The others include: Extending the bright-line test to 10 years.A ‘change-of-use’ rule within…

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Terminal tax isn’t due until 7 April – so why’s IRD already charging interest?

Terminal tax isn’t due until 7 April – so why’s IRD already charging interest? 1200 630 Lee Stace

Just because a terminal tax amount for the 2019-20 income year is not due and payable until 7 April does not mean Inland Revenue (IRD) is not already charging interest. Why is this happening, you may be asking? There could be several reasons. The method used to calculate your provisional tax payments, your income tax…

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We’ve made provisional tax easier

We’ve made provisional tax easier 1344 896 Lloyd Evaroa

We’ve made some changes to the way our dashboard works. It’s easier to navigate, the number of steps required for working with us is reduced and seeing the status of a taxpayer arrangement is the first thing you see. Navigate without needing to read a manual You can use the left-hand navigation sidebar or the…

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