IRD

Image: COVID-19 update
  • Lee Stace

COVID-19 update: Devil in the detail with UOMI remission
COVID-19 update: Devil in the detail with UOMI remission 1344 756 Lee Stace

Someone who is struggling to pay tax on time due to COVID-19 will have to jump through financial hoops and agree to the terms of an IRD payment plan if they want to receive a remission of interest (UOMI). Given that, they might find setting up a Flexitax® arrangement with TMNZ much easier. But more…

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  • Lee Stace

Standard uplift: When 105 percent uplift payments are less than 110 percent payments
Standard uplift: When 105 percent uplift payments are less than 110 percent payments 1200 630 Lee Stace

IRD will sometimes apply the 105 percent standard uplift calculation (CY-1) retrospectively when determining what’s due and payable at each provisional tax instalment. This happens in situations where CY-1 payments turn out to be less than 110 percent uplift payments (CY-2). When this is the case, IRD’s system will automatically overwrite the CY-2 calculation once…

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Image: Safe harbour tolerance
  • Lee Stace

Safe harbour tolerance being introduced
Safe harbour tolerance being introduced 1344 706 Lee Stace

A legislative amendment will allow taxpayers to remain in safe harbour if they underpay their provisional tax instalments by $20.   Smaller taxpayers using the standard uplift method to calculate their payments have been losing the ability to take advantage of the interest concession provided by this rule when they underpay by small amounts. When…

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Image: IRD contacting clients
  • Lee Stace

IRD agrees to stop contacting clients directly
IRD agrees to stop contacting clients directly 1200 630 Lee Stace

Accountants have a fundamental role to play in the tax system and IRD is putting measures in place to limit direct contact with their clients. These are the words of IRD commissioner Naomi Ferguson. Her announcement – made during her address at the annual Chartered Accountants Australia and New Zealand (CA ANZ) Tax Conference in…

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Image: 15 January provisional tax
  • Lee Stace

Don’t let 15 January provisional tax cause stress
Don’t let 15 January provisional tax cause stress 1200 630 Lee Stace

Paying 15 January provisional tax can be stressful and a pain in the derrière for many businesses – but it doesn’t have to be. There is an IRD-approved service that allows taxpayers to make this payment when it suits them. To understand why this might appeal, one must understand why 15 January provisional tax can…

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Image: IRD audit in hidden economy
  • Lee Stace

Remember tax pooling as IRD audit activity increases
Remember tax pooling as IRD audit activity increases 1200 630 Lee Stace

IRD ramping up its investigation activity by targeting businesses under-reporting cash sales or paying staff under the table is an opportune time to remind taxpayers that tax pooling can assist with audits or voluntary disclosures. The hidden economy is estimated to be worth close to $1 billion. That’s why IRD is cracking down on cash…

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Image: AIM and tax pooling
  • Lee Stace

AIM and tax pooling
AIM and tax pooling 1344 897 Lee Stace

Legislation prevents taxpayers from using tax pooling to pay AIM provisional tax instalments. We are issuing this reminder as IRD notifies us they are seeing several tax pooling transactions for these types of payments. Section RP17B (2)(a) Income Tax Act 2007 says an amount held in a tax pooling account on behalf of a taxpayer…

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Image: Taxation (Kiwsaver, Student Loans, and Remedial Matters) Bill
  • Lee Stace

TMNZ’s submission on Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill
TMNZ’s submission on Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill 1344 706 Lee Stace

TMNZ supports all but one of the proposed provisional tax amendments in the Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill. We made a submission on the Bill last week after receiving feedback from clients. In it, we share our thoughts on the following proposed amendments to provisional tax: Eliminating the requirement to estimate at…

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Image: IRD interest calculations
  • Lee Stace

Failing to pay cents costing thousands in IRD interest
Failing to pay cents costing thousands in IRD interest 1344 820 Lee Stace

**Update on 19 December 2019** IRD are fixing this issue and introducing a $20 threshold so taxpayers aren’t thrown out of safe harbour and charged use-of-money interest if they short pay provisional tax by a few cents. They are in the process of fixing up accounts that were charged in these situations. Original article published…

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Image: Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill
  • Lee Stace

Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill: Have your say on provisional tax changes
Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill: Have your say on provisional tax changes 1200 630 Lee Stace

The Taxation (Kiwisaver, Student Loans, and Remedial Matters) Bill contains six amendments that IRD says will clarify and align provisional tax legislation with its system. The proposed amendments are: Eliminating the requirement to estimate at the final instalment date for provisional tax Clarifying the ‘lesser of’ calculation of interest for standard uplift taxpayers Clarifying the…

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