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McLEAN AND CO.
Changes to Time Bars for Refunds
Lease Inducements and Surrender Payments
Do you have Unclaimed Money?
IRD'S Compliance Focus for Small to Medium Enterprises
The Office will be closed for the following prior to this coming Xmas:
Friday 29/11/2013 to Monday 9/12/2013
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.
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:
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 firstname.lastname@example.org or write to:
PO Box 38222
Wellington Mail Centre
Lower Hutt 5045
It is a practice of IRD to outline the mistakes they note associated with GST returns and how customers can correct these mistakes.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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If we can assist further, please email McLean and Co as follows: