Businesses

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  • Lee Stace

Deadline approaching for non-COVID-19 taxpayers
Deadline approaching for non-COVID-19 taxpayers 1200 630 Lee Stace

Options in the marketplace are available to help those NOT affected by COVID-19 pay their TMNZ arrangement for the 2019 tax year within the required legislative timeframe. We are mentioning this as we know there will be taxpayers short on cash right now who unfortunately won’t meet the criteria to receive the deadline extension announced…

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  • Lee Stace

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

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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  • Lee Stace

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

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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  • Lee Stace

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

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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  • Lee Stace

IRD system issues affecting tax pooling
IRD system issues affecting tax pooling 1200 630 Lee Stace

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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  • Lee Stace

IRD adjusts UOMI rates
IRD adjusts UOMI rates 1200 630 Lee Stace

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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  • Lee Stace

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

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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  • Lee Stace

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

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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  • Lee Stace

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

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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  • Lee Stace

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

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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