Welcome again to the McLean and Co. Newsletter in which we discuss current taxation and business matters. We trust you find it informative.  

 

We are happy to accept new clients.  We would be happy to assist colleagues and acquaintances as new clients.

 

INDEX

1. Office Closure

2. Changes to Time Bars for Refunds

3. Lease Inducements and Surrender Payments

4. Do you have Unclaimed Money?

5. IRD'S Compliance Focus for Small to Medium Enterprises

 

OFFICE CLOSURE

The Office will be closed for the following prior to this coming Xmas:

• Friday 29/11/2013 to Monday 9/12/2013

 

CHANGES TO TIME BARS FOR REFUNDS

Previously, IRD refunds could be made up to eight years after they were assessed where the credit arose from a clear mistake or simple oversight.

IRD can now only issue refunds within four years of the year they are assessed, for the 2013-14 and later tax years. Any refund resulting from assessments for the 2012-13 and prior tax years are still allowed the further four-year period.

The time period for claiming donation tax credits is also reducing to four years. If you have an early or standard balance date a tax credit for donations must be claimed within four years from 1 April, following the end of the tax year the donation was made in. If you have a late balance date, a tax credit for donations must be claimed within four years from the day after the end of the tax year the donation was made in. This change applies to tax credit claims made in the 2014-15 and later tax years.

 

LEASE INDUCEMENT AND SURRENDER PAYMENTS

These payments are now taxable to the recipient and tax deductible for the payer, spread over the term of the lease. The application dates are as follows:

• the amendments relating to lease inducement payments apply to an amount that is derived or incurred in relation to a lease or licence entered, renewed, extended, or transferred, on or after 1 April 2013
• the amendments relating to lease inducement payments don't apply to an amount that is derived or incurred on or after 1 April 2013 in relation to a lease or licence entered, renewed, extended or transferred, before 1 April 2013.
• the amendments relating to lease surrender payments apply to an amount that is derived or incurred on or after 1 April 2013.

 

DO YOU HAVE UNCLAIMED MONEY?

IRD holds a list of owners of unclaimed money left untouched for six or more years. The money is usually from deposits left in banks and other financial institutions and includes insurance proceeds, cheques and wages. Unclaimed money isn't refunded income tax or any other unpaid tax refunds.

Currently IRD  have over 71,000 names on this list, who are owed a total of $89,344,000. The sums involved range from just over $100 to several thousand dollars.

If you think some of that unclaimed money belongs to you, send to IRD your name, address, IRD number and proof of identity, eg, a copy of a birth certificate, driver's licence or passport, and we'll follow it up.

You can email your details to unclaimed.monies@ird.govt.nz or write to:

Unclaimed Money
Inland Revenue
PO Box 38222
Wellington Mail Centre
Lower Hutt 5045

Check to see if your name is on the unclaimed monies list

 

IRD'S COMPLIANCE FOCUS FOR SMALL TO MEDIUM ENTERPRISES

Goods and Services tax (GST)

It is a practice of IRD to outline the mistakes they note associated with GST returns and how customers can correct these mistakes.

View IRD online services demonstrations for filing eGST returns

 

Employer Monthly Schedule

It is a practice of IRD to outline employers’ obligations and explain that they contact businesses that do not file their employer monthly schedules at all, or file them late, to help them comply.

Find out more about your employer obligations

 

Record Keeping

Keeping good records is important for helping business management and growth. It is a practice of IRD to outline the key steps to getting it right and provide new information including their policy about offshore record keeping, including cloud computing.

Find out more about keeping accurate, complete records

 

Contractors

It is a practice of IRD to define the difference between hiring a contractor and an employee. It is a practice of IRD to also describe some of the mistakes they see independent contractors make with their tax.

Find out more about employees and self-employed contractors

 

Non-resident Contractors

It is a practice of IRD t to ensure all non-resident contractors and contract payers understand the tax requirements and what happens if they don’t comply. It is a practice of IRD to invite non-resident contractors to get in touch with themBto get their tax status confirmed, so that they and business owners are doing the right thing.

Find out more about paying a non-resident contractor or entertainer

 

Industry benchmarks

It is a practice of IRD  to support taxpayers to  manage their tax obligations. Industry benchmarks are a tool to enable small to medium enterprises to do this.

Find out more about industry benchmarks

 

Child Support

It is a practice of IRD to clarify that Child Support must be deducted from an employee’s pay if we send a request to their employer for this to happen.

Find out more about child support deductions

 

KiwiSaver

It is a practice of IRD to remind employers that from 1 April 2013 they must pay an employer’s contribution to their employees’ KiwiSaver funds (a minimum of 3% of their before-tax pay).

Find out more about KiwiSaver deductions

 

Student Loans

It is a practice of IRD to remind employers that student loan repayments should be deducted from employees’ pay after deducting PAYE and Child Support.

Find out more about deducting student loan repayments

 

Income Tax

It is a practice of IRD to remind self-employed customers that they need to pay income tax on their net profits (business income less business expenses). It is a practice of IRD to explain how to get it right and provide information on claiming expenses.

Find out more about individual income tax