Accounting income method

Image: Accounting Income Method (AIM)

Accounting income method: When cashflow doesn’t match accounting profit

Accounting income method: When cashflow doesn’t match accounting profit 1200 630 Lee Stace

IRD’s marketing material boasts the accounting income method (AIM) means taxpayers only pay provisional tax when they make a profit. But what it neglects to convey is what happens if an AIM user making a profit has no money in their bank account to pay tax when it is due. The answer? Bad things. IRD…

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AIM - the accounting income method

What IRD isn’t saying about AIM

What IRD isn’t saying about AIM 7360 4330 Lee Stace

The accounting income method – AIM – will be available to businesses to calculate their provisional tax payments using approved accounting software from 1 April. The concept is simple: Those with turnover of less than $5 million will make provisional tax payments when they earn their income, based on accounting profit. Inland Revenue (IRD) has…

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