IRD

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COVID-19: How tax pooling can still help taxpayers

COVID-19: How tax pooling can still help taxpayers 1344 908 TMNZ Blog

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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Coffee with Tsarina at Shore Accounting Solutions

Coffee with Tsarina at Shore Accounting Solutions 1200 630 TMNZ Blog

Tax pooling is part of the strategy Shore Accounting Solutions employs to assist businesses with managing cashflow and provisional tax payments. Tsarina Dellow (pictured above) is a chartered accountant at the two-person firm in Amberley, 45 minutes north of Christchurch. She says paying provisional tax on dates IRD prescribes can be hard on small- and…

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COVID-19: Additional tax relief announced

COVID-19: Additional tax relief announced 1200 630 TMNZ Blog

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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COVID-19 update: Devil in the detail with UOMI remission

COVID-19 update: Devil in the detail with UOMI remission 1344 756 TMNZ Blog

Update as at 14 April 2020 after IRD clarified its position following the publication of this article Someone who is struggling to pay tax on time due to COVID-19 will have to engage with IRD and agree to the terms of a payment plan if they want to receive a remission of interest (UOMI). Given…

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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 TMNZ Blog

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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Safe harbour tolerance being introduced

Safe harbour tolerance being introduced 1344 706 TMNZ Blog

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 this…

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IRD agrees to stop contacting clients directly

IRD agrees to stop contacting clients directly 1200 630 TMNZ Blog

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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Don’t let 15 January provisional tax cause stress

Don’t let 15 January provisional tax cause stress 1200 630 TMNZ Blog

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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Remember tax pooling as IRD audit activity increases

Remember tax pooling as IRD audit activity increases 1200 630 TMNZ Blog

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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AIM and tax pooling

AIM and tax pooling 1344 897 TMNZ Blog

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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