Tax Management NZ

Image: ABC
  • Lee Stace

Understanding provisional tax
Understanding provisional tax 1200 630 Lee Stace

What is provisional tax? How’s it calculated? When is it paid? What happens if you don’t pay? If these questions are currently occupying space in your head, don’t worry – we’re about to provide some answers. A brief overview Provisional tax breaks up the income tax you pay Inland Revenue (IRD) so that it is…

read more
Image: Bart Taylor
  • Lee Stace

Syncing provisional tax to cashflow
Syncing provisional tax to cashflow 1200 630 Lee Stace

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…

read more
Image: Flooded road
  • Lee Stace

Cashflow relief for farmers impacted by flood or drought
Cashflow relief for farmers impacted by flood or drought 1200 630 Lee Stace

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 –…

read more
  • Lee Stace

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 Lee Stace

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…

read more
Image: Bright-line property
  • Lee Stace

Seller beware – IRD bright-line campaign update
Seller beware – IRD bright-line campaign update 1200 630 Lee Stace

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…

read more
Image: Question mark
  • Lee Stace

Can AIM taxpayers use tax pooling?
Can AIM taxpayers use tax pooling? 1200 630 Lee Stace

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…

read more
  • Lee Stace

Make IRD interest, late payment penalties disappear
Make IRD interest, late payment penalties disappear 1024 683 Lee Stace

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…

read more
Image: Big data
  • Lee Stace

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 Lee Stace

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…

read more
  • Lee Stace

Commissioner’s discretion for tax pooling
Commissioner’s discretion for tax pooling 1200 630 Lee Stace

A provision within legislation allows taxpayers to use tax pooling for certain income tax or RWT voluntary disclosures where no return has been previously filed. This is known as Commissioner’s discretion. And it’s worth seeking if a taxpayer satisfies all relevant criteria (see below), as settling these underpaid tax types through an approved tax pooling…

read more
Image: Miscalculate
  • Lee Stace

Miscalculated your tax loss carry-back? Don’t worry – help is at hand
Miscalculated your tax loss carry-back? Don’t worry – help is at hand 1200 630 Lee Stace

Tax pooling can reduce the interest cost a taxpayer faces by up to 30 percent if they have overestimated their loss under the temporary tax loss carry-back scheme. Under the temporary Inland Revenue (IRD) scheme, those who expect to make a loss in the 2019-20 or 2020-21 income year can estimate that loss and use…

read more
Enter your
text here