TAX PAYMENT DEFERRAL
If you will have difficulty meeting your tax (income tax, GST, PAYE, FBT) payment obligations IRD have a range of options available as follows:
- A formal instalment arrangement where you repay an agreed amount over time
- Maximum of two years to repay your tax liability inclusive of any interest charged
- The first payment is to be within 3 months after the due date
- Payments can be made on a weekly, fortnightly or monthly basis or
- A lump sum at an agreed time within 3 months of the due date.
- Writing off an agreed amount if we determine that full payment would cause you serious hardship (detailed financial information will be required)
- A combination of an instalment arrangement and a serious hardship write-off.
IRD must be contacted to make a formal arrangement before the due date. As long as you meet all of your obligations under the arrangement you will only be charged one late payment penalty of 1% plus interest (current UOMI rate is 9.73%) Further penalties will only be charged if you do not meet your arrangement obligations.
We can set up the arrangement on your behalf. We will discuss your current circumstances with the IRD to help determine the best option for dealing with the amount due. The IRD will consider your current situation, your payment history and your ability to meet future obligations. You can of course go direct to IRD yourself.
Negotiation period
Where IRD require extra information to determine the best option for you they will give a specific timeframe to provide the required information. During this time, they will not impose further penalties or take new debt recovery actions. Late payment penalties and recovery actions will recommence only if a conclusion is not reached before the end of the negotiated timeframe. Interest continues to be charged during the period of negotiation.
Please call your contact person at Fraser Accounting should you wish to take advantage of this option.
NEW TAX RATES
Income tax rates as from 1 April 2009 are:
Individuals |
0 - $14,000 |
12.5% |
|
$14,001 - $48,000 |
21% |
|
$48,001 - $70,000 |
33% |
|
Over $70,000 |
38% |
Companies |
All income |
30% |
Trusts |
All income |
33% |
We look forward to keeping in touch with you and informing you of all the great information and knowledge Fraser Accounting has to offer!
Important: This is not advice. Readers should not act solely on the basis of the material contained in this report. Items herein are general comments only and do not constitute or convey advice perse. Changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas.
