tax pooling

  • Jade Robertson
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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
  • Lee Stace
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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
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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: Safe harbour provision.
  • Lee Stace
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Uplift payments required for safe harbour eligibility
Uplift payments required for safe harbour eligibility 1200 630 Lee Stace

Provisional taxpayers cannot use the safe harbour provision if they fail to make their standard uplift payments on time and in full. However, tax pooling can fix this. Safe harbour – what it is and the criteria Safe harbour is a concession whereby IRD will not charge interest between a taxpayer’s final provisional tax instalment…

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Image: IRD interest calculations
  • Lee Stace
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Failing to pay cents costing thousands in IRD interest
Failing to pay cents costing thousands in IRD interest 1344 820 Lee Stace

A $2400 IRD interest bill after underpaying an instalment of provisional tax by a mere 30 cents. This is just one example of how the programming issues within IRD’s system are currently affecting interest calculations for provisional taxpayers. IRD says it has seen cases where taxpayers have lost access to the safe harbour provision because…

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Image: Accounting Income Method (AIM)
  • Lee Stace
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Accounting income method: When cashflow doesn’t match accounting profit
Accounting income method: When cashflow doesn’t match accounting profit 1200 630 Lee Stace

IRD’s marketing material boasts the accounting income method (AIM) means taxpayers only pay provisional tax when they make a profit. But what it neglects to convey is what happens if an AIM user making a profit has no money in their bank account to pay tax when it is due. The answer? Bad things. IRD…

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  • Jade Robertson
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Coffee with Ann from Q2 Accountants
Coffee with Ann from Q2 Accountants 1200 630 Jade Robertson

Have you ever wanted to sit down with an accountant and discuss topics related to business and provisional tax in depth? We were given the opportunity to do just that with Ann Cooper Smith, the Founder & Chief Executive of Q2 Accountants.If you don’t know who Ann is, she is a chartered accountant with 30…

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  • Lee Stace
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Cashflow survival: Dealing with terminal, provisional tax
Cashflow survival: Dealing with terminal, provisional tax 1200 630 Lee Stace

The months of April and May can really tax your cashflow. Let me explain. On 7 April, IRD expects you to pay terminal tax for the 2018 income year. Terminal tax means a taxpayer did not pay enough provisional tax for the previous year. As such, they need to square up the difference. To make…

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  • Denise Pimentel
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TMNZ and Xero team up to educate clients
TMNZ and Xero team up to educate clients 600 338 Denise Pimentel

 Xero and TMNZ partnered up earlier this month for Xero’s Education month. Kathleen Payne, TMNZ’s Strategic Partnerships Manager, ran the  webinar educating people on the benefits of tax pooling as well as a practical demonstration of applying TMNZ provisional tax arrangements within the Xero platform.

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Paying provisional tax: The ONE thing you must know
  • Lee Stace
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Paying provisional tax: The ONE thing you must know
Paying provisional tax: The ONE thing you must know 1200 630 Lee Stace

Many a business owner is familiar with paying provisional tax. And the reason they are familiar with it is because they do not like paying it. There are myriad reasons why. But perhaps the biggest issue of paying provisional tax is the inflexibility of IRD. They want you to pay on the dates they set.…

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