Tailored - EMA

EMABusiness
Tax pooling changes: do they affect you?
Every business in New Zealand that
pays provisional tax will be affected by
the changes Inland Revenue has made to
the Tax pooling rules.
Tax pooling is provided by tax
intermediaries to allow provisional
taxpayers to manage their tax payments
and allows businesses to:
n Minimise use-of-money-interest
(UOMI) with under and over
payments of provisional tax,
n Avoid late payment penalties; and
n Finance tax
In summary the rule changes are
to extend tax pooling to apply to
additional tax payable as a result of a
reassessment which:
n Includes Voluntary Disclosures and
Resolution of a Dispute, and
n Covers all tax types
Funds will only be accessed with
Take control
of provisional tax
payments and
free up
cash flow today
www.tmnz.co.nz
Our TaxFINANCE package allows us to
pay your provisional tax for you. Why
hand over money before you have to?
• Authorised in one phone call
• Rates from as low as 6% p.a.
• Lending fee is deductible
• No security or credit checks required
For more information call 0800 729 829
TMNZ - Financing SME Tax since 2003
SMART TAX PAYMENTS
an effective backdated date for the
difference between the amount
originally payable and amount payable
as a result of a reassessment. Transfers
of excess tax for all tax types will be
allowed for deposit into a tax pooling
account.
Where a taxpayer transfers money
to pay provisional tax with an effective
date after terminal tax date, payment
should be applied first to interest
outstanding, then to the outstanding
tax liability. The transfer of tax pooling
funds between intermediaries will be
allowed.
This means?
Essentially that IRD has more clearly
identified the parameters with which
businesses can use tax pooling.
In addition, where IRD reassesses a
taxpayer’s liability, the rules now allow
for businesses to access tax payments
for the additional tax they may need to
pay for all tax types. Where reassessment
occurs, tax pooling funds will only
reduce exposure to UOMI, but not any
penalties imposed.
Prior to these rule changes, some
taxpayers accessed tax pooling funds
(with a back-dated effective provisional
tax date) to pay outstanding GST
liabilities in order to remove their
exposure to penalties, as well as UOMI.
Tax pooling was never intended to
assist tax payments for businesses where
payments are definitive.
Tax Management New Zealand has been
New Zealand’s leading tax intermediary
since 2003, and is a partner with EMA. We
can help you manage your provisional tax
payments, maximise your cash flow, and
minimise interest or penalty payments
with our tax pooling facilities. Contact
your accountant, or Tax Management
NZ, for more detailed information.
0800 829 888 www.tmnz.co.nz
Icehouse kicks off Fast Pitch 2009
Auckland University’s
Icehouse has kicked
off its Fast Pitch
2009 competition for
entrepreneurs.
The real life
Dragon’s Den scenario
invites people to put
their business ideas to
a panel of judges, with
prizes on the table.
The Fast Pitch final on October 27 will have 10
finalists competing for the main prize. Other categories
are:
n Best Intellectual Property Idea,
n Best Funding Opportunity for Investors,
n Best Presentation Skills and
n People’s Choice award
The overall winner will receive a prize package valued
at over $15,000 including three months incubation in the
ICE Accelerator.
Last year’s Fast Pitch winner Todd Wackrow of mobile
marketing company PocketVouchers said the event "was
incredibly useful."
The Icehouse has worked directly with 65 start-up
companies and over 2,000 established companies.
PAGE TMNZ 4 EMA Aug.indd EMA Business 1 Plus Magazine - Exclusive EMA news, advice, learning 24/7/09 and 10:40:53 networking AM