2008 media releases
Provisional tax gets easier
6 March 2008
Inland Revenue will soon make it easier for businesses to cover their provisional tax payments.
From the start of the 2008/2009 tax year, Inland Revenue will introduce a new and optional way for businesses to calculate their provisional called the ratio option.
The ratio option will allow eligible businesses to base their provisional tax payments on their actual sales. This means that their payments will more accurately reflect their income.
Policy Manager Keith Taylor said that the new ratio option will make it easier for businesses to pay their provisional tax, especially if they have seasonal or fluctuating income. "They can now make six variable payments every two months, rather than three equal payments throughout the year."
Businesses that have a standard 31 March balance date must apply for the ratio option by phone or in writing by the end of this month if they want to use it during the 2008/2009 tax year. Businesses that have a non-standard balance date must apply to Inland Revenue before the start of their 2008/2009 tax year.
Mr Taylor said that the ratio option provides a third choice for businesses. "The estimation or standard options currently used by businesses to calculate their provisional tax can still be used'', he said.
He said that the ratio option may not suit all businesses, and recommended that businesses speak with their tax agents or seek other professional advice before applying.
This new option is one of several changes being made to simplify tax for small to medium-sized businesses.
Other changes include combining the provisional tax and GST due dates, which will provide standardised due dates for businesses and enabling them to pay these taxes at the same time.
More information about the changes, including the criteria businesses need to meet to use the ratio option can be found at http://www.ird.govt.nz/provisional-tax/prov-tax-changes/
Ends
For more information:
Mac Dalton
Media Advisor
(04) 890 1743
Other media releases this year
- Accountant sentenced for tax evasion
- Invercargill accountant jailed for tax evasion
- Dairy owner sentenced for hiding half a million
- Tauranga court jails man for tax evasion
- Most Working for Families recipients not charged interest for overpayments
- Former Kaikohe farm manager jailed for tax evasion
- Auckland plasterer jailed for tax evasion
- New callback service rolled out across Call Centre
- Former employee sentenced
- KiwiSaver report released
- Inland Revenue expands e-services
- Do-it-yourself tax refunds
- Employers reminded about new tax rates
- Former Inland Revenue employee pleads guilty to corruption
- Sentencing strong message for contractors
- Accountant jailed for defrauding clients and Inland Revenue
- Inland Revenue pilots callback system to help customers
- Inland Revenue proposes changes to company tax return
- Agricultural contractor sentenced
- Jail for horticultural student
- Tax fraud results in jail term
- Thousands apply for student loan amnesty
- Early Working for Families Tax Credits payments
- Inland Revenue wins People's Choice NetGuide web award for second time
- Waikato couple sentenced for tax evasion
- Inland Revenue warns about income diversion
- Report of investigation of an error in tax revenue numbers
- Tax credits for people made redundant
- R&D tax credit goes live
- Student Loan amnesty - last chance to apply
- Revised financial statements
- Tax advice for investors in failed finance companies
- Tax advice for property investors
- Early Working for Families Tax Credits payments
- IRD numbers about to get longer
- Tax authorities work together to stop international tax evasion
- Inland Revenue helps drought-affected farmers
- IRD numbers available at NZ Post and AA
- Inland Revenue warns against divulging personal details
- Second jail term for major tax scam
- Welcome surprise for owners of forgotten money
- End-of-year tax date fast approaching
- Time running out for student loan amnesty
Corporate Affairs
Inland Revenue
To make a media query:
Phone 04 890 1698 or email mediaqueries@ird.govt.nz
Please note, the email address is only for enquiries from the news media. It is monitored during normal business hours 8am - 5pm Monday to Friday.
P O Box 2198
Wellington 6140
New Zealand
Date published: 06 Mar 2008
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