We understand that many of you will have taxes to pay for the 28th of August 2021. If you feel that this will impact your cash flow and wish to hold off the payments, the following information may be helpful. Remember business taxes include GST and PAYE.
Firstly ensure you file returns, even if you can’t pay the tax you still need to file the returns.
From the IRD – Covid19 – Manage my tax
This section of their website outlines more information on filing and paying as well as penalties and interest. Visit the website here.
If you’re unable to pay your personal or business taxes on time due to the impact of COVID-19, we understand. Get in touch with us or the IRD directly as soon as possible.
The IRD can assist in various ways including installment arrangements and remitting penalties and interest. Do file as per usual. The information is used to make correct payments to people and to help the Government continue to respond to what is happening in the economy.
Tax Pooling – This could be an option for you.
Another alternative when it comes to income tax (provisional) is to use tax pooling at a later date. If you are not eligible for penalty and interest write-offs then tax pooling gives you the option to have your income tax payments backdated and a reduced interest rate from the rate IRD charges and this then removes any penalties which may be charged.
Click here for information from Tax Traders who have helped many of our clients in the past. This explains how tax pooling works and how it may assist you to hold off paying your taxes today.
For further enquiries speak to your Monteck Carter contact today.