A $2400 IRD interest bill after underpaying an instalment of provisional tax by a mere 30 cents. This is just one example of how the programming issues within IRD’s system are currently affecting interest calculations for provisional taxpayers. IRD says it has seen cases where taxpayers have lost access to the safe harbour provision because…read more
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…read more
The months of April and May can really tax your cashflow. Let me explain. On 7 April, IRD expects you to pay terminal tax for the 2018 income year. Terminal tax means a taxpayer did not pay enough provisional tax for the previous year. As such, they need to square up the difference. To make…read more
Tax tip: Coming up to your third provisional tax date and had a better financial year than expected?
If you have had a better-than-expected year and are considering paying extra income tax at your final provisional tax date (P3) to compensate for earlier underpayments, Tax Management NZ (TMNZ) has an alternative method that will further reduce your exposure to IRD interest. We recommend you pay your estimated liability at P3 and purchase the…read more