UOMI

Tax loss carry-back scheme: Important considerations

Tax loss carry-back scheme: Important considerations 1200 630 Lee Stace

Standard imputation (ICA), ownership continuity and grouping rules still apply under the new tax loss carry-back scheme, while anyone who overestimates their loss will face IRD interest (UOMI) from the date of their first provisional tax instalment for the previous year. Moreover, company profits already paid out via shareholder-employee salaries or dividends are unable to…

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IRD adjusts UOMI rates

IRD adjusts UOMI rates 1200 630 Lee Stace

Someone will now pay the taxman less interest (UOMI) if they underpay their tax – but literally receive nowt if they overpay. That’s the key takeaway after IRD announced it is adjusting its UOMI rates today. They are lowering the interest they charge for underpaid tax from 8.35 percent to seven percent. IRD’s credit interest…

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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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COVID-19 update: Devil in the detail with UOMI remission

COVID-19 update: Devil in the detail with UOMI remission 1344 756 Lee Stace

Update as at 14 April 2020 after IRD clarified its position following the publication of this article Someone who is struggling to pay tax on time due to COVID-19 will have to engage with IRD and agree to the terms of a payment plan if they want to receive a remission of interest (UOMI). Given…

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Use of money interest update

Use of money interest update Lee Stace

Inland Revenue (IRD) use of money interest rates on underpaid and overpaid tax are set to rise next month. The interest rate charged by IRD on underpaid tax will rise from 8.4 percent to 9.21 percent. The rate for overpaid tax will rise from 1.75 percent to 2.63 percent. The new rates will take effect…

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Avoid a cashflow problem in the New Year

Avoid a cashflow problem in the New Year Lee Stace

Here’s how you can delay paying 15 January provisional tax to free up working capital at a time of year when businesses are likely to need it most. The early part of the New Year can be a challenging time for small and medium sized businesses. Results from a poll conducted by the Employers and…

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New form of protection from IRD penalties, interest

New form of protection from IRD penalties, interest Lee Stace

Taxpayers with volatile income can now protect themselves in advance from the risk of incurring hefty IRD late payment penalties and use of money interest (UOMI) if they have a better-than-expected financial year. Tax SHIELD™, a new product from Tax Management NZ (TMNZ), lets taxpayers put an arrangement in place whereby they pay an upfront…

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Relieve winter cashflow pressure

Relieve winter cashflow pressure Lee Stace

The winter months can wreak havoc with your cashflow. So much so, in fact, that sometimes the last thing you want to do is pay provisional tax. Some of those with a March financial year-end can probably relate to this situation, as they will pay their first instalment of provisional tax for the 2015 income…

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Take the guesswork out of provisional tax

Take the guesswork out of provisional tax Lee Stace

No doubt many of you will be paying your first provisional tax instalment in a couple weeks’ time. As you know, provisional tax involves a degree of guesswork because you base your payments on what you think your income tax will be. Accurately gauging how much you need to pay on your first provisional tax…

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A legitimate way for farmers to keep the taxman at bay

A legitimate way for farmers to keep the taxman at bay Lee Stace

Using tax pooling to defer untimely provisional tax payments can save farmers money, as it eliminates IRD late payment penalties and use of money interest charges. In this article, we look at how it might be of use to farmers who are wishing to reinvest in their business. Farmer Joe has a conundrum. Overall, business…

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