It is always good to pay your tax in full by the due date to avoid penalties and interest charges applicable to all defaulters.
I have some suggestions to help business people pay on time, and steps you can take if your tax payment is overdue.
Print out a list of your due dates by going to our website at www.ird.govt.nz and use the Tax due date calculator under ‘Work it out/Important dates.’
Manage your cash flows carefully; prepare a budget, review your credit policy, make sure your charge-out rate covers your costs.
If your customers are slow in paying, and you are registered for GST, consider using the “payments basis” to enable GST payment as your customers pay you.
Open a special tax account with your bank and put money aside regularly, so that you can be ready for your tax payments.
If you disagree with your tax assessment, go to our website and click on ‘Disputes & Complaints’ to find out about the disputes resolution process.
If you cannot pay your tax on time, get in touch with us before the due date; this will save you money in the long run. See ‘Manage financial difficulty’ on our website.
File your tax returns, even if you cannot pay the due tax amount.
Call us on 0800-377771 to ask about repaying your tax over time; an instalment arrangement will probably save you money.
If repaying your tax would cause you serious hardship, call us to see if you qualify for a write-off.
Call us on 0800-377774 to let us know about important changes that have occurred in your business; for example, a new address, change in business activity, or finishing up as an employer.
I wish all Indian Newslink readers a safe and enjoyable holiday break.
Abdul Rafik is Inland Revenue’s Community Relationships Advisor based in Auckland. He is happy to answer readers’ queries, which should be sent to venkat@indiannewslink.co.nz
If you would like to attend IRD free seminars and workshops, register online at www.ird.govt.nz
