TAX TIDBITS
Issue Thirty Seven, April 2010
In this months issue:
Where income has reduced significantly from prior years, taxpayers have the option of filing a Provisional Tax Estimate to reduce the liability for tax to be paid in advance. Taxpayers have until the date of their final Provisional Tax installment to file a Tax Estimate. For the majority of taxpayers with a March year-end this date is 7 May 2010.
If you believe that your tax liability for the 2010 tax year will have significantly reduced from the 2009 year, please contact HWI to discuss the possibility of estimating your 2010 Provisional Tax liability.
Some taxpayers will be subject to an interest charge payable to Inland Revenue on their year-end tax liabilities. If your 2010 income is likely to have increased substantially from the 2009 year it is sensible to consider voluntarily increasing your Provisional Tax payments, thereby reducing the interest payable to the Inland Revenue Department.
If this situation applies to you, please contact HWI and we can discuss the merits and costs of making voluntary Provisional Tax uplifts to reduce year end Use of Money Interest charges incurred.
Depending on the taxpayers' compliance history the Inland Revenue Department will consider installment arrangements for taxes outstanding. Although interest is still applicable to overdue tax, a Tax Payment Plan will avoid Late Payment Penalties from being incurred. Tax Payment Plans need to be strictly adhered to however can assist with cash-flow difficulties being experienced by many businesses post Christmas.
If you believe that you will be unable to meet your tax obligations in full by due date, please contact HWI to discuss establishing a formal Tax Payment Plan with the Inland Revenue Department.
With the end of the 2010 financial year accounts having arrived there are some issues that business owners should consider before forwarding their year-end accounts information. These issues impact on the tax position of the company.
Disclaimer Information contained within this document is of a general nature and does not constitute advice. Readers are cautioned not to act or reply on it without first seeking professional advice. The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
