Small business cashflow loan scheme deadline extended
Small Business Cashflow (Loan) Scheme deadline extended Government has announced a six-week extension for the Small Business Cashflow (loan) Scheme (SBC).
Applications opened on 12 May 2020 and can now be submitted up to and including 24 July 2020.
All other conditions remain the same. For details of the loan conditions visit: www.ird.govt.nz/covid-19
The loan is providing relief to eligible businesses experiencing financial pressures during COVID-19. We have seen continuing demand particularly from businesses with up to five full-time-equivalent employees. Already we have received over 73,000 applications, and 95% of these have been approved. This represents $1.19B disbursed.
The average loan is around $17,000. Most loans are processed overnight with businesses receiving their funds well within five working days of the loan being approved.
We advise applicants to read the conditions and eligibility carefully before submitting their application. The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee up to a maximum of $100,000.
Applicants must have 50 or fewer full-time-equivalent employees. Details about all our COVID-19 relief initiatives, including eligibility criteria and applying for the SBC loan, can be found at www.ird.govt.nz/covid-19
Applications opened on 12 May 2020 and can now be submitted up to and including 24 July 2020.
All other conditions remain the same. For details of the loan conditions visit: www.ird.govt.nz/covid-19
The loan is providing relief to eligible businesses experiencing financial pressures during COVID-19. We have seen continuing demand particularly from businesses with up to five full-time-equivalent employees. Already we have received over 73,000 applications, and 95% of these have been approved. This represents $1.19B disbursed.
The average loan is around $17,000. Most loans are processed overnight with businesses receiving their funds well within five working days of the loan being approved.
We advise applicants to read the conditions and eligibility carefully before submitting their application. The maximum amount loaned is $10,000 plus $1,800 per full-time-equivalent employee up to a maximum of $100,000.
Applicants must have 50 or fewer full-time-equivalent employees. Details about all our COVID-19 relief initiatives, including eligibility criteria and applying for the SBC loan, can be found at www.ird.govt.nz/covid-19
employees working from home allowance
An article on the Herald website this morning suggested any employee working from home can ask their employer to approach Inland Revenue to organise a $15 per week tax refund.
We expect this might create calls from employees and employers asking if this is true. It is not.
We put out a Determination a month back which set out how in certain circumstances, if an employer were to pay an additional allowance to an employee to cover the costs of working from home, that additional allowance may be exempt from tax.
The article is confusing in a number of ways, but this is the key error - the tax treatment only applies to an additional allowance an employer has chosen to pay an employee. For more detail,
see https://www.ird.govt.nz/covid-19/business-andorganisations/employing-staff/allowances-and-reimbursements
Please contact Mark Taylor if you have any questions.
We expect this might create calls from employees and employers asking if this is true. It is not.
We put out a Determination a month back which set out how in certain circumstances, if an employer were to pay an additional allowance to an employee to cover the costs of working from home, that additional allowance may be exempt from tax.
The article is confusing in a number of ways, but this is the key error - the tax treatment only applies to an additional allowance an employer has chosen to pay an employee. For more detail,
see https://www.ird.govt.nz/covid-19/business-andorganisations/employing-staff/allowances-and-reimbursements
Please contact Mark Taylor if you have any questions.
Helping businesses impacted by COVID-19
Recently the Government announced more tax changes to assist NZ businesses manage the impacts of COVID-19.
Legislation has now been passed to bring some of these changes into effect.
Small business cashfow scheme (SBCS)
The Small Business Cashflow Scheme (SBCS) is a one-off loan to businesses impacted by COVID-19. Small to medium business owners, including sole traders and the self-employed, may be eligible for a one-off loan if they have been adversely affected by COVID-19.
For more information go to: www.ird.govt.nz/covid19
Temporary loss carry-back scheme
Businesses expecting to make a loss in either the 2020 year or the 2021 year can use that loss to offset profits they made the year before. In other words, they can carry the loss back one year to the preceding income year. This can be done before the loss year return is filed.
There are two ways to claim your loss carry-back.
If you choose to use the loss carry-back scheme you must first elect to participate in the scheme under the ‘I want to’ section of myIR. Refunds will be processed quicker for claims made through myIR. Log in or register for a myIR account today.
Note: You do not need to have filed the loss year return to claim the loss carry-back.
By when do I need to re-estimate my provisional tax?
You can re-estimate your provisional tax as many times as you need to as long as you do so before the tax return for the year is filed or due, whichever is earlier.
Subvention payments, profits paid as shareholder-employee salaries or dividends
The following situations cannot be reversed to take advantage of a loss carry-back:
Shareholder-employees who have paid provisional tax on the basis they would receive a shareholder salary in the 2020 year may re-estimate their provisional tax if their company is going to claim a loss carry-back in 2020 - which will reduce their shareholder-salary. Any overpaid provisional tax will be refunded.
Shareholder-employees must let us know they are going to re-estimate their provisional tax because of a loss carry-back by using the opt-in service in myIR (in the ‘I want to’ section of your income tax account in myIR account). They can then re-estimate their provisional tax up to the time their 2020 return is due or filed. In all other situations the last day for a provisional tax estimation is the 3rd provisional tax instalment date.
Need more information?
Talk to your tax agent or go to: www.ird.govt.nz/loss-carry-back
To find out how to claim a loss carry-back go to: www.ird.govt.nz/claim-loss-carry-back
Recently the Government announced more tax changes to assist NZ businesses manage the impacts of COVID-19.
Legislation has now been passed to bring some of these changes into effect.
Small business cashfow scheme (SBCS)
The Small Business Cashflow Scheme (SBCS) is a one-off loan to businesses impacted by COVID-19. Small to medium business owners, including sole traders and the self-employed, may be eligible for a one-off loan if they have been adversely affected by COVID-19.
For more information go to: www.ird.govt.nz/covid19
Temporary loss carry-back scheme
Businesses expecting to make a loss in either the 2020 year or the 2021 year can use that loss to offset profits they made the year before. In other words, they can carry the loss back one year to the preceding income year. This can be done before the loss year return is filed.
There are two ways to claim your loss carry-back.
- Include the carried-back loss in your tax return – we will automatically refund any overpaid tax.
- Ask for a refund of any provisional tax you have paid for 2020 if you are going to carry back a loss from 2021.
If you choose to use the loss carry-back scheme you must first elect to participate in the scheme under the ‘I want to’ section of myIR. Refunds will be processed quicker for claims made through myIR. Log in or register for a myIR account today.
Note: You do not need to have filed the loss year return to claim the loss carry-back.
By when do I need to re-estimate my provisional tax?
You can re-estimate your provisional tax as many times as you need to as long as you do so before the tax return for the year is filed or due, whichever is earlier.
Subvention payments, profits paid as shareholder-employee salaries or dividends
The following situations cannot be reversed to take advantage of a loss carry-back:
- company profits that have been paid out as a dividend or shareholder employee salary in the preceding year
- a subvention payment made in a preceding year.
Shareholder-employees who have paid provisional tax on the basis they would receive a shareholder salary in the 2020 year may re-estimate their provisional tax if their company is going to claim a loss carry-back in 2020 - which will reduce their shareholder-salary. Any overpaid provisional tax will be refunded.
Shareholder-employees must let us know they are going to re-estimate their provisional tax because of a loss carry-back by using the opt-in service in myIR (in the ‘I want to’ section of your income tax account in myIR account). They can then re-estimate their provisional tax up to the time their 2020 return is due or filed. In all other situations the last day for a provisional tax estimation is the 3rd provisional tax instalment date.
Need more information?
Talk to your tax agent or go to: www.ird.govt.nz/loss-carry-back
To find out how to claim a loss carry-back go to: www.ird.govt.nz/claim-loss-carry-back
acc invoices have been delayed due to covid 19
Kia ora,
We acknowledge the difficult times being experienced by many businesses as a result of COVID-19 and have made the decision to delay CoverPlus Extra invoicing for three months.
During this time CoverPlus Extra payment plans will be paused and we will not seek payment for outstanding balances. Rest assured all customers will remain covered at their agreed amount.
We are also communicating this directly to our CoverPlus Extra customers
What this means for your CoverPlus Extra clients
Their policy has rolled over for the 2020/21 year and any changes made during the renewal process have been actioned.
They will remain covered during this time at the agreed cover amount. You can check their policy details by logging in to MyACC for Business.
Customers on a payment plan with an outstanding amount owing may have their next instalment taken before being paused. They will not have any future payments taken, even if it shows in MyACC for Business.
We will be in touch if there are any further changes to our invoicing practices during this time, and to let you know when the 2020/21 CoverPlus Extra invoice will be issued and payment plans will resume.
Please note. We are aware of an issue in MyACC for Business that is currently impacting the way information is displayed for some customers and we are working on this as a top priority. We are sorry for the inconvenience this causes.
Other ACC invoicing
As you know, every day we are issuing invoices. These are generated by either a change to a customer’s details, or as a result of information sent to us from Inland Revenue.
At this stage these invoices continue to be sent, but we have added an insert to reassure customers that we have options available to support them and we are not actively collecting at this time.
We will continue to monitor the impact this is having to businesses and be as responsive as possible.
Our website up to date with the latest information about our response for business customers.
COVID-19 information for businesses
If you have any questions in the meantime, please reply to this email.
Noho ora mai,
Phil Riley
Head of Business Customer Service Delivery, ACC
We acknowledge the difficult times being experienced by many businesses as a result of COVID-19 and have made the decision to delay CoverPlus Extra invoicing for three months.
During this time CoverPlus Extra payment plans will be paused and we will not seek payment for outstanding balances. Rest assured all customers will remain covered at their agreed amount.
We are also communicating this directly to our CoverPlus Extra customers
What this means for your CoverPlus Extra clients
Their policy has rolled over for the 2020/21 year and any changes made during the renewal process have been actioned.
They will remain covered during this time at the agreed cover amount. You can check their policy details by logging in to MyACC for Business.
Customers on a payment plan with an outstanding amount owing may have their next instalment taken before being paused. They will not have any future payments taken, even if it shows in MyACC for Business.
We will be in touch if there are any further changes to our invoicing practices during this time, and to let you know when the 2020/21 CoverPlus Extra invoice will be issued and payment plans will resume.
Please note. We are aware of an issue in MyACC for Business that is currently impacting the way information is displayed for some customers and we are working on this as a top priority. We are sorry for the inconvenience this causes.
Other ACC invoicing
As you know, every day we are issuing invoices. These are generated by either a change to a customer’s details, or as a result of information sent to us from Inland Revenue.
At this stage these invoices continue to be sent, but we have added an insert to reassure customers that we have options available to support them and we are not actively collecting at this time.
We will continue to monitor the impact this is having to businesses and be as responsive as possible.
Our website up to date with the latest information about our response for business customers.
COVID-19 information for businesses
If you have any questions in the meantime, please reply to this email.
Noho ora mai,
Phil Riley
Head of Business Customer Service Delivery, ACC
ACC invoices are coming:-
What you need to know:-
Whether you’re self-employed, a contractor, or you have staff, you’ll likely receive an invoice from ACC between mid-July and mid-August.
Everyone in New Zealand who is in business has to pay ACC levies, which are separate from general tax and cover the cost of injuries caused by accidents.
How ACC determines your leviesWhen you file a tax return or register for GST with Inland Revenue, you choose a Business Industry Classification (BIC) code. This describes the business activity you do.
Inland Revenue passes your BIC code, liable income or payroll, and your contact details along to ACC, so they can invoice you for levies based on your business activity.
Some jobs have more risks than others, so some industries pay higher levies than others.
Why have I received an invoice? (external link) — ACC
Paying levies if you work or own a business (external link) — ACC
ACC levies
Types of ACC levies
Everyone who works or owns a business in New Zealand pays levies. These levies cover injuries that happen at work, at home, on the sports field, and when you’re out and about.
There are three types of ACC levy:
Earners’ levyEveryone who earns a salary in New Zealand pays the Earners' levy, which helps cover the cost of accidents that happen in your everyday activities outside work. It’s a flat rate, currently $1.21 per $100 (excluding GST) of your liable income.
Work levy
This levy goes into the Work Account to fund injuries that happen at work, and it’s different for every business.
Working Safer levy
This levy supports the activities of WorkSafe New Zealand, and is a flat rate - currently 8c per $100 of your liable payroll or income.
What if the details on my invoice are wrong?
ACC receives your income details from Inland Revenue. If they’re not correct on your invoice, get in touch with Inland Revenue, who will send any updates to ACC.
If any other details on your invoice are wrong, eg you’ve changed business activity or ceased trading, this could affect the levies you’re paying.
The fastest way to update your business details is to go online (the link is below). If your invoice is wrong, ACC will send you a debit or credit adjustment.
Do you have more questions about ACC levies?
Employers can call 0800 222 776, or self-employed people can call 0508 426 837.
You can also contact ACC by email at business@acc.co.nz.
Whether you’re self-employed, a contractor, or you have staff, you’ll likely receive an invoice from ACC between mid-July and mid-August.
Everyone in New Zealand who is in business has to pay ACC levies, which are separate from general tax and cover the cost of injuries caused by accidents.
How ACC determines your leviesWhen you file a tax return or register for GST with Inland Revenue, you choose a Business Industry Classification (BIC) code. This describes the business activity you do.
Inland Revenue passes your BIC code, liable income or payroll, and your contact details along to ACC, so they can invoice you for levies based on your business activity.
Some jobs have more risks than others, so some industries pay higher levies than others.
Why have I received an invoice? (external link) — ACC
Paying levies if you work or own a business (external link) — ACC
ACC levies
Types of ACC levies
Everyone who works or owns a business in New Zealand pays levies. These levies cover injuries that happen at work, at home, on the sports field, and when you’re out and about.
There are three types of ACC levy:
Earners’ levyEveryone who earns a salary in New Zealand pays the Earners' levy, which helps cover the cost of accidents that happen in your everyday activities outside work. It’s a flat rate, currently $1.21 per $100 (excluding GST) of your liable income.
Work levy
This levy goes into the Work Account to fund injuries that happen at work, and it’s different for every business.
Working Safer levy
This levy supports the activities of WorkSafe New Zealand, and is a flat rate - currently 8c per $100 of your liable payroll or income.
What if the details on my invoice are wrong?
ACC receives your income details from Inland Revenue. If they’re not correct on your invoice, get in touch with Inland Revenue, who will send any updates to ACC.
If any other details on your invoice are wrong, eg you’ve changed business activity or ceased trading, this could affect the levies you’re paying.
The fastest way to update your business details is to go online (the link is below). If your invoice is wrong, ACC will send you a debit or credit adjustment.
Do you have more questions about ACC levies?
Employers can call 0800 222 776, or self-employed people can call 0508 426 837.
You can also contact ACC by email at business@acc.co.nz.
Business.govt.nz - make business easier
Holiday and short term rentals: what you need to know
December 2017
If you’If you’re thinking about making your home, rental property or holiday house available for short-term rentals, make sure you know the rules on holiday rental agreements, claiming expenses, whether to declare it at tax time, and more.re thinking about making your home, rental property or holiday house available for short-term rentals, make sure you know the rules on holiday rental agreements, claiming expenses, whether to declare it at tax time, and more.
Key things to consider for holiday rentals:
With the rise of online holiday accommodation websites like Airbnb and Bookabach, listing a property for short-term let is easy. But there’s more to it than just putting your property out there. Key things to consider include:
Check out your local council rules on short-term accommodation — some councils require you to register properties which are rented out, e.g. Queenstown Lakes District Council.
Make sure you fully understand the terms and conditions of any hosting website you use.Rental agreementsWhen a house you own is used as a holiday rental, you’re not covered by the Residential Tenancies Act. This means standard rental agreements don’t apply.
Some hosting sites, like Airbnb, include booking terms and conditions in your page listing. If terms and conditions aren’t included when you list your rental, you’ll need to create and enforce a written agreement outlining your terms and conditions.
The agreement should cover rules and expectations about:
If you use a template provided by your preferred hosting website, make sure it suits your situation and covers everything you need it to.
Check your preferred hosting site for rental agreement templates and tips on attracting and vetting guests.If you're a landlordYou can’t ask tenants to move out temporarily so you can make more money over the summer by using the property for Airbnb or similar.
If your tenants decide to sublet the property while they’re away, they need your permission and must abide by their tenancy agreement. They can’t sublet the property without your permission.
Subletting (external link) — Tenancy Services
Insurance, tax, customer vetting and the Consumer Guarantees Act are all things to consider when letting to holiday-makers.
Understanding consumer laws
Tax obligationsIncome you receive for providing accommodation, including through websites like Airbnb or Bookabach, is taxable. This includes any payment for one-off or irregular rentals. Exceptions apply, see renting out your holiday home below.
This means you:
GST rules might apply if you offer guests meals, cleaners or other services in addition to accommodation. If you’re not sure, check with Inland Revenue — or your accountant, if you have one.
Your tax obligations when renting out a residential home (external link) — Inland Revenue
Claiming expenses: You can only claim expenses if you declare your rental income in your tax return.
Remember: expenses you can claim include rates, insurance, cleaning and advertising.
Claiming expenses (external link) — Inland Revenue
Holiday homes you rent out and use yourself:
There are different tax rules if you have a mixed-use holiday home where:
Tax rules for mixed-use assets (external link) — Inland Revenue
GST for mixed-use assets (external link) — Inland Revenue
Keeping tax records
Insurance:
Your usual house and contents insurance might not cover you if something happens while your property is rented out. Speak to your insurer — you may need to pay a higher premium or arrange extra cover, but this is better than finding out too late that damage isn’t covered.
Talk to your insurer about cover for:
Some hosting websites offer free cover for these types of things, but it’s worth a chat with your insurance company either way.
Insurance
Health and safety.
Check whether there are any regulations you need to comply with — your local council is a good place to start.
Examples include:
If you’If you’re thinking about making your home, rental property or holiday house available for short-term rentals, make sure you know the rules on holiday rental agreements, claiming expenses, whether to declare it at tax time, and more.re thinking about making your home, rental property or holiday house available for short-term rentals, make sure you know the rules on holiday rental agreements, claiming expenses, whether to declare it at tax time, and more.
Key things to consider for holiday rentals:
With the rise of online holiday accommodation websites like Airbnb and Bookabach, listing a property for short-term let is easy. But there’s more to it than just putting your property out there. Key things to consider include:
- creating and enforcing a holiday rental agreement
- tax obligations, if any
- insurance cover
- health and safety and consumer laws
- claimable expenses and record-keeping.
Check out your local council rules on short-term accommodation — some councils require you to register properties which are rented out, e.g. Queenstown Lakes District Council.
Make sure you fully understand the terms and conditions of any hosting website you use.Rental agreementsWhen a house you own is used as a holiday rental, you’re not covered by the Residential Tenancies Act. This means standard rental agreements don’t apply.
Some hosting sites, like Airbnb, include booking terms and conditions in your page listing. If terms and conditions aren’t included when you list your rental, you’ll need to create and enforce a written agreement outlining your terms and conditions.
The agreement should cover rules and expectations about:
- payments, including deposits and refunds
- maximum number of guests
- pets
- camping, eg extra guests can/can’t pitch a tent on the lawn
- smoking/non-smoking
- liability, eg if someone has an accident on your property.
If you use a template provided by your preferred hosting website, make sure it suits your situation and covers everything you need it to.
Check your preferred hosting site for rental agreement templates and tips on attracting and vetting guests.If you're a landlordYou can’t ask tenants to move out temporarily so you can make more money over the summer by using the property for Airbnb or similar.
If your tenants decide to sublet the property while they’re away, they need your permission and must abide by their tenancy agreement. They can’t sublet the property without your permission.
Subletting (external link) — Tenancy Services
Insurance, tax, customer vetting and the Consumer Guarantees Act are all things to consider when letting to holiday-makers.
Understanding consumer laws
Tax obligationsIncome you receive for providing accommodation, including through websites like Airbnb or Bookabach, is taxable. This includes any payment for one-off or irregular rentals. Exceptions apply, see renting out your holiday home below.
This means you:
- must include the income on an Individual tax return (IR3). This can be filed online — for most people it’s due 7 July
- can claim expenses for the time you rented out the space, eg rates, insurance, cleaning and advertising
- must keep clear records to confirm all income and expenses.
GST rules might apply if you offer guests meals, cleaners or other services in addition to accommodation. If you’re not sure, check with Inland Revenue — or your accountant, if you have one.
Your tax obligations when renting out a residential home (external link) — Inland Revenue
Claiming expenses: You can only claim expenses if you declare your rental income in your tax return.
Remember: expenses you can claim include rates, insurance, cleaning and advertising.
- You can only claim expenses for the time you rented out the space.
- If you're renting out a room, you can only claim a proportion of your household expenses.
- Remember to keep clear records to confirm all income and expenses.
Claiming expenses (external link) — Inland Revenue
Holiday homes you rent out and use yourself:
There are different tax rules if you have a mixed-use holiday home where:
- you stay in the holiday home yourself sometimes
- you rent it out to others sometimes
- it's not used for a total of 62 days or more during the tax year — or the same proportion if you buy or sell it partway through a tax year, eg a total of 31 days if you sell six months into a tax year.
Tax rules for mixed-use assets (external link) — Inland Revenue
GST for mixed-use assets (external link) — Inland Revenue
Keeping tax records
Insurance:
Your usual house and contents insurance might not cover you if something happens while your property is rented out. Speak to your insurer — you may need to pay a higher premium or arrange extra cover, but this is better than finding out too late that damage isn’t covered.
Talk to your insurer about cover for:
- theft or damage by short-term holiday tenants
- cover during times the property is empty
- loss of income — if something major happens and you are unable to rent the property out.
Some hosting websites offer free cover for these types of things, but it’s worth a chat with your insurance company either way.
Insurance
Health and safety.
Check whether there are any regulations you need to comply with — your local council is a good place to start.
Examples include:
- Fit smoke detectors throughout the property and check these are in working order every three months.
- Any deck more than 1m high has a fence of at least 1m high right around it.
- Any pool deeper than 400mm is fenced.
- Hazardous items like chemicals and poisons are properly stored and kept out of sight.
- Any kayaks or boats provided for use are seaworthy and life jackets are provided.
Business expenses: What can you claim?
All self-employed people can claim expenses, contractors included. If you work from home you can claim some household expenses, too. Learn about valid expenses.
Check it out
Are you under insured?
Holding back on insurance can be tempting when money’s tight. But allowing for risk could mean the difference between going under and thriving.
Read more
Selling online: Hobby or business?
If you regularly sell online, you are “in trade”. This means paying tax and complying with consumer laws.
Read more
Customer complaints: Fixing delivery problems
Step-by-step advice for sellers on what to do if a customer complains about damaged parcels or delayed deliveries.
See how
Save on power: new online tool for business
Could your energy use be eating into profits? EECA’s new tool tells you where you use most power and how to use less. Get custom results and easy ways to save.
Find out more
Compliance just got easier
It’s now easier than ever to find out how your business can comply with government rules with the updated online tool Compliance Matters.
Check it out
Employment rights: Free online training
If you, or people you advise, employ staff, it’s important to know the rules. These short online courses can help.
Try it
MAKE BUSINESS EASIER - INFO@NEWS.BUSINESS.GOVT.NZ
CONTACT US
If you have a business issue or question, you can call business.govt.nz free on 0800 424 946
SHARE
Ministry of Business, Innovation and Employment
15 Stout Street, Wellington 6011
FOLLOW US
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All self-employed people can claim expenses, contractors included. If you work from home you can claim some household expenses, too. Learn about valid expenses.
Check it out
Are you under insured?
Holding back on insurance can be tempting when money’s tight. But allowing for risk could mean the difference between going under and thriving.
Read more
Selling online: Hobby or business?
If you regularly sell online, you are “in trade”. This means paying tax and complying with consumer laws.
Read more
Customer complaints: Fixing delivery problems
Step-by-step advice for sellers on what to do if a customer complains about damaged parcels or delayed deliveries.
See how
Save on power: new online tool for business
Could your energy use be eating into profits? EECA’s new tool tells you where you use most power and how to use less. Get custom results and easy ways to save.
Find out more
Compliance just got easier
It’s now easier than ever to find out how your business can comply with government rules with the updated online tool Compliance Matters.
Check it out
Employment rights: Free online training
If you, or people you advise, employ staff, it’s important to know the rules. These short online courses can help.
Try it
MAKE BUSINESS EASIER - INFO@NEWS.BUSINESS.GOVT.NZ
CONTACT US
If you have a business issue or question, you can call business.govt.nz free on 0800 424 946
SHARE
Ministry of Business, Innovation and Employment
15 Stout Street, Wellington 6011
FOLLOW US
Facebook Twitter YouTube LinkedIn
IRD Scam targets Kiwi's tax returns - reports the NZ Herald
Clients of Karaka Accounting Services Ltd - should contact us if you have any further questions about their Tax Returns.
NZ Herald - Breaking news 2pm Tuesday 13th June 2017.
An online scam targeting Kiwis filing a tax return has been uncovered by the Herald, and the Inland Revenue is now investigating the scheme.
Inland Revenue confirmed the fraud when the Herald forwarded an email chain purporting to be from IRD.
The email arrives with subject line reading, "IR3 individual income tax return 2016".
It goes on to read: "After the last calculations of your fiscal activity, we have determined that you are eligible to receive a tax refund".
With a domain name of "public.service.department@inlandrevenue.org", it then lists a figure in New Zealand dollars for what the targeted person is owed.
"Please submit the tax refund request and allow us 1-3 days in order to process it," it said.
An external link for the victim to click on and enter their personal details is then offered for the person to claim their "tax refund".
"Note: A refund can be delayed a variety of reasons, for example submitting invalid records or applying after deadline," the email warns.
It ends with a copyright claim for Inland Revenue and that for "security reasons" the user will be "automatically logged off after 15 minutes of inactivity".
An Inland Revenue spokesman told the Herald it was not a genuine email, and warned people of several scams the department was aware of during this year's tax season.
"We have not had reports of this particular scam," he said. "No genuine email from Inland Revenue would have this suffix.
"Scams of various types - mainly email or phone - are unfortunately a fairly constant occurrence these days."
He advised anyone who had received the email, or may have already fallen victim, to contact Inland Revenue on 0800 227 774 with their IRD number.
Ways to spot a scam
The IRD will not:
• Send you an email with a hyperlink to a webpage that asks you to submit personal information.
• Send you an email, knock on your door or phone you promising a tax refund.
• Ask you to pay money to release a tax refund.
• Ask you to pay a tax debt using iTunes cards, or any type of gift voucher.
• Threaten legal action "out of the blue" unless you immediately start to repay a tax debt.
• Send a representative to your house without an appointment. If someone turns up at your house, make sure you check their identification carefully and contact IRD if you are concerned.
NZ Herald - Breaking news 2pm Tuesday 13th June 2017.
An online scam targeting Kiwis filing a tax return has been uncovered by the Herald, and the Inland Revenue is now investigating the scheme.
Inland Revenue confirmed the fraud when the Herald forwarded an email chain purporting to be from IRD.
The email arrives with subject line reading, "IR3 individual income tax return 2016".
It goes on to read: "After the last calculations of your fiscal activity, we have determined that you are eligible to receive a tax refund".
With a domain name of "public.service.department@inlandrevenue.org", it then lists a figure in New Zealand dollars for what the targeted person is owed.
"Please submit the tax refund request and allow us 1-3 days in order to process it," it said.
An external link for the victim to click on and enter their personal details is then offered for the person to claim their "tax refund".
"Note: A refund can be delayed a variety of reasons, for example submitting invalid records or applying after deadline," the email warns.
It ends with a copyright claim for Inland Revenue and that for "security reasons" the user will be "automatically logged off after 15 minutes of inactivity".
An Inland Revenue spokesman told the Herald it was not a genuine email, and warned people of several scams the department was aware of during this year's tax season.
"We have not had reports of this particular scam," he said. "No genuine email from Inland Revenue would have this suffix.
"Scams of various types - mainly email or phone - are unfortunately a fairly constant occurrence these days."
He advised anyone who had received the email, or may have already fallen victim, to contact Inland Revenue on 0800 227 774 with their IRD number.
Ways to spot a scam
The IRD will not:
• Send you an email with a hyperlink to a webpage that asks you to submit personal information.
• Send you an email, knock on your door or phone you promising a tax refund.
• Ask you to pay money to release a tax refund.
• Ask you to pay a tax debt using iTunes cards, or any type of gift voucher.
• Threaten legal action "out of the blue" unless you immediately start to repay a tax debt.
• Send a representative to your house without an appointment. If someone turns up at your house, make sure you check their identification carefully and contact IRD if you are concerned.
Selling Property? calculating RLWT
Selling property? Know how to calculate the correct amount of RLWT?
The 6th edition of our popular book A Practical Guide to Taxing Property Transactions provides comprehensive
coverage of the bright-line test and the associated measures subsequently introduced - namely the residential
land withholding tax (RLWT) and new disclosure and registration requirements.
Extract from Chapter 9 "Selling the Property":
Calculating RLWT
The amount of RLWT is the lesser of:
- 33% (or 28% if the vendor is a company) x (current purchase price – vendor's acquisition cost), or
- 10% x current purchase price, or
- the current purchase price less the amount required to discharge a loan secured by a qualifying mortgage less outstanding local authority rates.
RLWT is payable out of the "residential land purchase amount" (s YA 1), that is, an amount paid or payable for the
disposal of residential land, excluding any deposit or part payment that totals less than 50% of the purchase price.
This ensures that the withholding tax will usually be payable at settlement.
Example
Marama left New Zealand four years ago to go and work in Australia. Despite her best intentions, she has never
returned to New Zealand since she left. Eighteen months ago she purchased a residential rental property in
Hamilton from her old neighbour for $300,000. She has just signed a contract to sell the property for $450,000.
She has a mortgage of $250,000 on the property and outstanding rates of $1500. The purchaser has paid Marama
a deposit of $90,000 before settlement. The RLWT to pay is $45,000 (ie the lesser of the three options outlined
above, being 10% x current purchase price).
Note that the prices used to calculate RLWT are net of GST, if any.
Ready to find out more
Practical and up-to-date, this book will provide readers with the knowledge required to effectively manage the
complex tax rules affecting property transactions.
For more information or to order your copy of the A Practical Guide to Taxing Property Transactions for only $120.00 (plus GST), visit the CCH Bookstore.
Alternatively, you can order by phone on 0800 500 224 or email nz-cchbooks@wolterskluwer.com
understanding provisional tax
Provisional tax makes it easier to pay your income tax by spreading the payments over the year. If your end-of-year tax was more than $2,500 then Provisional tax makes it easier to pay your income tax by spreading the payments over the year. If your end-of-year tax was more than $2,500 then you'll have to pay provisional tax the following year.en you'll have to pay provisional tax the following year.
Instalment datesYour provisional tax payment dates depend on the option you use for calculating provisional tax and when your tax year ends.
Your balance date is the last day of your tax yearFor most people this is 31 March. The 31 March balance date is known as the standard balance date.
Most people pay three instalments of provisional tax. People who file GST returns have other instalment options they can choose.
If you have the
Standard balance date of 31 March, the below due dates will apply:
Instalment Due dates:
1 28 August
2 15 January
3 7 May
If you file six-monthly GST returnsIf you're registered for and file six-monthly GST returns and have a standard 31 March balance date, you'll pay your provisional tax in two instalments:
Instalment Due dates:
1 28 October
2 7 May
If you use the ratio optionIf you use the ratio option for calculating your provisional tax and have a standard 31 March balance date, you'll pay your provisional tax in six instalments:
Instalment Due dates:
1 28 June
2 28 August
3 28 October
4 15 January
5 28 February
6 7 May
Late payment penaltiesMake sure you pay your provisional tax on time because late payments will attract penalties.
Penalty amount Applied
1% the day after the due date
4% seven days later
1% for each month the tax remains unpaid.
Source: IRD website 9 March 2017
Your balance date is the last day of your tax yearFor most people this is 31 March. The 31 March balance date is known as the standard balance date.
Most people pay three instalments of provisional tax. People who file GST returns have other instalment options they can choose.
If you have the
Standard balance date of 31 March, the below due dates will apply:
Instalment Due dates:
1 28 August
2 15 January
3 7 May
If you file six-monthly GST returnsIf you're registered for and file six-monthly GST returns and have a standard 31 March balance date, you'll pay your provisional tax in two instalments:
Instalment Due dates:
1 28 October
2 7 May
If you use the ratio optionIf you use the ratio option for calculating your provisional tax and have a standard 31 March balance date, you'll pay your provisional tax in six instalments:
Instalment Due dates:
1 28 June
2 28 August
3 28 October
4 15 January
5 28 February
6 7 May
Late payment penaltiesMake sure you pay your provisional tax on time because late payments will attract penalties.
Penalty amount Applied
1% the day after the due date
4% seven days later
1% for each month the tax remains unpaid.
Source: IRD website 9 March 2017
To the Company Director
Great news, the changes we've made to GST online are now here! We hope these improvements make managing your GST online a little quicker and easier.
My GST
Our records show that your tax agent files your GST return on your behalf. With your next filing date coming up, now's the time for you and your tax agent to check out the new My GST section. Just login to your myIR account and click on the My GST tab to get started. There's much more to My GST than filing your return, click here to see what other changes we've made.
To get started
We've got a few handy videos to help get you started, including a quick tour of the new GST online services, how to make a GST payment online and how to give someone access to your GST account.
Yours faithfully
Julie Mussen
Manager, Inland Revenue
Ref: eDM-T
Great news, the changes we've made to GST online are now here! We hope these improvements make managing your GST online a little quicker and easier.
My GST
Our records show that your tax agent files your GST return on your behalf. With your next filing date coming up, now's the time for you and your tax agent to check out the new My GST section. Just login to your myIR account and click on the My GST tab to get started. There's much more to My GST than filing your return, click here to see what other changes we've made.
To get started
We've got a few handy videos to help get you started, including a quick tour of the new GST online services, how to make a GST payment online and how to give someone access to your GST account.
Yours faithfully
Julie Mussen
Manager, Inland Revenue
Ref: eDM-T
