In its 2015 Annual Report Inland Revenue announced that it had been able to reduce the total amount of overdue tax debt from $5.471 billion at 30 June 2014 to $5.153 billion at 30 June 2015. This included collecting $4.7 billion from debt cases over the year an increase of $600 million from the 2013-14 year.
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Every month or so, we publish a newsletter containing all the most important updates which can potentially cause complications for our clients. We've just published our latest newsletter: It's Submission Time!.
Reminder tax year end tips
#1 Review your debtors & ensure bad debts written off by 31st March to ensure a bad debt deduction
#2 File elections to join the look-through company regime by 31 March so election can take effect from 1 April
#3 Ensure imputation credit account to is in credit at 31 March to avoid 10% imputation penalty tax on any debit
#4 Carry out a thorough stock check and either dispose of obsolete & slow-moving stock or value it at market selling value
Revenue Minister: focus on reducing SME compliance costs will be on making processes simpler "more supportive of business".
Revenue Minister: number of consultation papers on tax administration coming out over the next few months.
Mike Cunnington: Child Support IT blowout is an example of how difficult it is to introduce big changes with present FIRST system.
When I consider what’s likely to have the most impact in tax this year, I keep coming back to the massive shift in attitude by tax authorities in the aftermath of the Global Financial Crisis (GFC).
Usually changes in the tax world are incremental, but what is going on now in the field of international tax is fascinating because of its scope and speed. It is one of those rare generational shifts, the implications of which will be felt for decades.
There’s no evidence that Albert Einstein described compounding interest as “the most powerful force in the Universe”. The phrase appears to have been attributed to him by a financial journalist years after his death in 1955. Whatever Einstein’s views on the topic it’s certainly true that compounding interest soon adds up. A classic example of this is the $367 million (and counting) summary judgement Inland Revenue secured in June against one John George Russell.
They say “Ignorance is bliss” but that is certainly not so with tax and most definitely not so when dealing with financial arrangements.
Every month or so, we publish a newsletter containing all the most important updates which can potentially cause complications for our clients. We've just published our latest one: Never mind the election, here's some legislation.
“We need a simplified, fair, equitable, easy to follow, easy to understand, and easy to comply with TAX CODE” This was 'Boatman’s' enthusiastic response on this website to the news that Revenue Minister Roger McClay is setting up a Tax Simplification Panel. Boatman’s remarks kicked off a lively debate on these pages about the merits or otherwise of the current system and what should be done. However, it’s unlikely that Boatman’s suggestion to “wipe the board clean and start with a clean …page” will be fulfilled, as the Panel’s focus will be on tax administration not tax policy.
“A (wafer-thin) surplus, more money for housing, education and exporters, a promise of tax cuts plus a sneaky tax surprise” were the Budget predictions I tweeted yesterday morning.