tax facts

retirement strategies - don't be caught short

The right type of planning will ensure a smooth transition when a business is sold or transferred upon retirement or upon death.

We provide financial security and peace of mind by ensuring there is minimal financial burden on the next generation while protecting todays retirement lifestyle.

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Providing Accounting and Tax Solutions for your Business

 

1. Taxpayers who do not meet their tax obligations may face penalty or interest charges. To avoid such charges, you should pay the full amount of tax you owe by the due date.

2. The main kinds of charges for failing to meet tax obligations are:
  • a late payment penalty if you post or deliver a payment to the IRD after the date it was due
  • a late filing penalty if you do not file a return by the due date
  • a shortfall penalty where the correct amount of tax is higher than the amount you paid (e.g, because of an understatement of tax, or where the amount of a refund or loss is reduced)
  • interest on the amount of tax you owe if you have underpaid your tax. The interest rates charged are based on market rates.
3. Taxpayers who have not been able to meet their tax obligations by the due date have the option of purchasing tax credits from Tax Management NZ.

4. The tax credits cannot be purchased for provisional taxes if the taxpayer's tax obligations are more than 75 days past its terminal tax date.

For more information refer to the IRD's Taxpayer Obligations, Interest & Penalties booklet.