provisional tax

Image: COVID-19 update

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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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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Jucy Rentals Group say good bye to provisional tax stress

Jucy Rentals Group say good bye to provisional tax stress 1200 630 Jade Robertson

They say you can’t make an omelet without breaking some eggs. In this context, a company cannot grow without taking some risks or investing in their business. Jucy Rentals Group’s day-to-day operations highly depend on cash in the bank. It faces a unique challenge when it comes to paying provisional tax. They have to account…

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Four reasons why accountants should consider tax pooling

Four reasons why accountants should consider tax pooling 1200 630 Jade Robertson

Meet Andy. He is a builder who has run his own business for almost three years, with the current year reflecting he will make a substantial profit. He gets paid well and is smart enough to set aside the tax he owes with every cheque. However, the clients he is working for do not always…

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Coffee with Maria from The Tax Lady

Coffee with Maria from The Tax Lady 1200 630 Jade Robertson

“Why would IRD allow you to do this?” This is the reaction of some of Maria Anderson’s clients when they hear about how tax pooling can help with provisional tax payments for the first time. Maria is one of the Directors at The Tax Lady in Upper Hutt, north of Wellington. Their clients range from…

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Image: 15 January provisional tax

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: AIM and tax pooling

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

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

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

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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