tax pooling

Image: Anti-money laundering

Anti-money laundering requirements and tax pooling

Anti-money laundering requirements and tax pooling 1344 820 Lee Stace

Tax Management NZ (TMNZ) must now conduct a limited form of customer due diligence on all clients as part of recent changes to anti-money laundering (AML) requirements. As such, we will be collecting information about the taxpayers using our service and asking anyone acting on their behalf to supply some basic personal details. We also…

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IRD system issues affecting tax pooling

IRD system issues affecting tax pooling 1200 630 Lee Stace

IRD is working to resolve the problem of its system incorrectly sending grace period letters to taxpayers flagged as using tax pooling. However, they have fixed the issue which was seeing someone’s GST refund being automatically applied to their provisional tax. Here’s what you need to know about both problems. Plus, we also highlight some…

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COVID-19: How tax pooling can still help taxpayers

COVID-19: How tax pooling can still help taxpayers 1344 908 Lee Stace

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 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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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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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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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: Accounting Income Method (AIM)

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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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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