2009 media releases
Apply now for the provisional tax ratio option
9 March 2009
People wanting to use the "ratio option" to calculate their 2010 provisional tax must apply to Inland Revenue by the end of this month.
Inland Revenue Group Manager Assistance, Charles Ronaldson, said that the ratio option can offer significant cash flow advantages – particularly to businesses with earnings that fluctuate over the course of the year.
Under this option, each instalment of provisional tax is based on the earnings shown in the most recent GST return. That means tax payments are made at the same time as the business is earning its income. GST returns must be filed every month or two months, and provisional tax is paid six times a year instead of the normal three times.
"This may help spread the load over the year," said Mr Ronaldson.
Businesses adopting the ratio option avoid use-of-money interest charges on short-payments of provisional tax, provided correctly calculated instalments are paid by the due date.
"People who are having cash flow difficulties may like to consider the ratio option," said Mr Ronaldson.
"But please don't delay - we must receive your application by 31 March."
There is more information about the ratio option in the guide A new way to work out your provisional tax (IR 851), including who is eligible, calculating payments, and how to apply. Copies of the guide are available at www.ird.govt.nz under "Forms and guides".
"The ratio option isn't for everyone, so please talk to your tax advisor before making a decision," said Mr Ronaldson.
For further information:
Catherine Delore
(04) 890 1743
(029) 890 1743
catherine.delore@ird.govt.nz
Other media releases this year
- Structured finance cases settled
- Inland Revenue warns of party plan pitfalls
- Tax fraudster breached worker trust
- High wealth individuals pay an extra $81 million
- Residential rental property and depreciable items
- Lower Hutt man sentenced for tax evasion
- Two jailed for multi-million dollar tax fraud
- High Court ruling on Westpac case
- Christchurch man jailed for GST fraud
- Tsunami donations tax credits
- Former Queenstown man jailed on tax evasion charges
- Jail for $5 million tax fraud
- Tiler jailed for $1.6 million tax evasion
- Online service makes tax refunds easier
- Inland Revenue welcomes High Court decision
- Auckland property consultant jailed for tax fraud
- Te Kuiti accountant jailed for 12 months for tax evasion
- Property developer sentenced for GST fraud
- Wellington man sentenced for tax fraud
- Man jailed for GST fraud
- Helping you get it right
- Last day for tax returns fast approaching
- Auckland man sentenced on GST fraud charges
- GST fraudster convicted again
- New Plymouth woman jailed for fraud
- Christchurch man sentenced on tax offences
- Extradited tax fraudster sentenced to home detention
- Jail for multimillion dollar tax fraud
- Thousands of people eligible for unclaimed millions
- Inland Revenue appeals High Court decision
- Inland Revenue considers voluntary redundancies
- Talk to us, says Commissioner of Inland Revenue
- Keep IRD numbers confidential
- Wellington accountant sentenced on tax fraud charges
- Avoid unexpected GST bills on apartment sales
- Nelson man jailed for tax evasion
- Stay informed about KiwiSaver changes
- Tax payment date fast approaching
- Former tax agent employee sentenced for fraud
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: 09 Mar 2009
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