Tax Management NZ

Tax pooling tips: Using the Due Date on myIR statements may needlessly expose you to UOMI

Tax pooling tips: Using the Due Date on myIR statements may needlessly expose you to UOMI 1344 896 TMNZ Blog

Here we discuss how TMNZ can help you to avoid interest charges with payments at P3. Unfortunately we’re seeing many clients buying tax at the wrong dates.  We believe this is caused by the confusing way Inland Revenue displays the Residual Income Tax liability on the myIR statements.  If a taxpayer doesn’t meet the safe…

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Inland Revenue extends tax pooling deadline for COVID-19 impacted taxpayers 

Inland Revenue extends tax pooling deadline for COVID-19 impacted taxpayers  1344 896 TMNZ Blog

Updated: 11 May 2022 Anyone impacted by COVID-19 will now have 183 days after their terminal tax date (or until 30 September 2022, whichever comes first) to settle 2021 income tax arrangements with TMNZ, subject to meeting certain criteria. Inland Revenue (IR) has announced it has extended the legislative deadline, after recognising the cashflow difficulties…

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Payment options for 15 January provisional tax

Payment options for 15 January provisional tax 765 450 TMNZ Blog

One of the challenges of paying provisional tax in times of economic uncertainty is making a payment that is both appropriate and does not negatively impact your cashflow. Tax is one of the largest expenditure lines for a business, so you want to get it right. You don’t want to overpay, because that’s money sitting…

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Syncing provisional tax to cashflow

Syncing provisional tax to cashflow 1200 630 TMNZ Blog

As a self-employed painter and decorator, Bart Taylor knows full well how business owners can get themselves into strife if they don’t plan for their tax obligations. He speaks from his own personal experience. That’s why Bart is happy to talk about how Tax Management NZ (TMNZ) enables him as a self-employed tradesperson to take…

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Cashflow relief for farmers impacted by flood or drought

Cashflow relief for farmers impacted by flood or drought 1200 630 TMNZ Blog

Those impacted by flooding in Canterbury or drought elsewhere in New Zealand have another option to manage their cashflow. It’s called tax pooling. It lets taxpayers defer their upcoming provisional tax payments to a time that suits them, without incurring interest (currently seven percent) and late payment penalties from Inland Revenue (IRD). The service –…

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Bright-line test: Don’t get caught by ‘change-of-use’ rule fishhook

Bright-line test: Don’t get caught by ‘change-of-use’ rule fishhook 1200 630 TMNZ Blog

Anyone who lives away from their main home for more than a year will be liable to pay income tax on any profit they make from the sale of a residential property sold within the new bright-line period. That’s because of the introduction of a ‘change-of-use’ rule that came into effect when the Government amended…

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Seller beware – IRD bright-line campaign update

Seller beware – IRD bright-line campaign update 1200 630 TMNZ Blog

Inland Revenue (IRD) will soon begin issuing letters to taxpayers within a month of them selling a residential property. These will be sent as soon as the tax department identifies a transaction that potentially falls within the bright-line rules, to ensure people are aware of any possible tax obligations. IRD says initially there will be…

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Can AIM taxpayers use tax pooling?

Can AIM taxpayers use tax pooling? 1200 630 TMNZ Blog

A taxpayer cannot use tax pooling to defer payment of, or settle, provisional tax instalments calculated under the accounting income method (AIM). However, Tax Management NZ (TMNZ) can help AIM taxpayers with terminal tax or when they receive a notice of reassessment. What does tax pooling legislation say about AIM? Legislation in the Income Tax…

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Make IRD interest, late payment penalties disappear

Make IRD interest, late payment penalties disappear 1024 683 TMNZ Blog

A missed or underpaid provisional tax payment often means a taxpayer is faced with a steep interest cost and potentially late payment penalties on top of what they owe. However, tax pooling can make that go away. A big frustration with Inland Revenue (IRD) is that it expects taxpayers to pay the correct amount of…

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Audit claim data highlights level of IRD’s behind-the-scenes activity

Audit claim data highlights level of IRD’s behind-the-scenes activity 1200 630 TMNZ Blog

Inland Revenue (IRD) is still actively reviewing taxpayers despite COVID-19 and the various business disruptions the pandemic has caused in the past 12 months, according to figures released by Accountancy Insurance. They saw a 31 percent increase in claims in all categories during the 2020-21 financial year compared to the 2019-20 financial year. In terms…

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