COVID-19

Important considerations: 28 October provisional tax

Important considerations: 28 October provisional tax 1200 630 Lee Stace

The outbreak of COVID-19 is making it even trickier to work out how much provisional tax to pay, not to mention finding the funds to pay it. That’s why, with 28 October approaching, we’re going to offer a couple of pointers to consider as you look to manage this uncertainty in a pandemic-impacted environment. This…

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Three tax pooling solutions for businesses impacted by COVID-19

Three tax pooling solutions for businesses impacted by COVID-19 1200 630 Lee Stace

IRD has announced a suite of tax relief measures during COVID-19 to help struggling businesses. However, a tax pooling provider such as Tax Management NZ (TMNZ) offers some solutions of its own for those wishing to manage cashflow, facing uncertainty about their profitability or needing access to funds during this difficult economic time: Provisional tax…

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COVID-19 provisional tax interest remission: What you need to know

COVID-19 provisional tax interest remission: What you need to know 1200 630 Lee Stace

Updated 11 August 2020 Small- and medium-sized taxpayers may no longer have to pay interest if they underpay provisional tax as a result of miscalculating the impact COVID-19 has on their profitability for the 2020-21 income year. However, while this concession is a major boon ahead of the 28 August 2020 payment date for those…

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GST ratio timeframe extended

GST ratio timeframe extended 1200 630 Lee Stace

IRD has extended the timeframe for taxpayers to elect to use the GST ratio method in the wake of COVID-19. They now have until 19 August 2020 or the day before the start of their 2020-21 income year, depending on which is later, to opt in. Normally someone who is eligible to calculate their provisional…

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

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

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

Webinars to get businesses geared up for the post-COVID-19 environment 1344 639 Denise Pimentel

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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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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