End of year challenges for business owners
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GRA Blogs
Articles by John Rowe
It’s that time of year where many businesses are finding things tight financially. Consequently, they can struggle to meet their tax obligations with IRD. If you find yourself in this situation you must be proactive. Simply, if you get to the point where IRD start chasing you, your options become more limited and you can end up paying more than you have to with penalties etc.
If you need help with payment arrangements, talk to us first. We do not recommend approaching IRD yourself. Of course, if IRD contact you directly, refer them to us. It is far better to let experts like GRA deal with issues, than trying to negotiate with IRD yourself, as this can lead to further complications. In our experience, IRD’s staff are more concerned about collecting tax than informing you about your legal rights and options. Sadly, we are regularly seeing people misled into paying more than they have to.
Undeclared cash income
As you are probably aware, IRD have been running a campaign on cash receipts. With their new computer system, IRD are collecting and analysing all sorts of data. We are aware that recently they data mined transactions from EFTPOS service providers and statistically checked these back to various business types. We have seen a couple of new clients who have been caught in this audit sweep. The upshot of this is that you need to be compliant!
Planning ahead
To avoid getting into strife with IRD in the first place, you need to manage your business, especially your cash flow, and plan ahead. I will be running a seminar on 26 February where I will talk about what you need to know for the upcoming end of this financial year and being prepared as we head into the new one. I will also discuss upcoming tax changes including loss ring-fencing, and IRD audit activity. Murray Fulton from Advantage business is also presenting, and he will show you how to move your business from where it is now, to where you want it to be. We would love to see you there.
Please contact us if you need help with any of the issues raised in this blog – and the sooner you do so the better. We will discuss your affairs in strictest confidence and work with you to find the best solution. You can reach us on 09 522 7955, info@gra.co.nz or via our website.
In the meantime, I wish you all the best for the holiday season.
John Rowe
Director
Business Accounting Services
© Gilligan Rowe & Associates LP
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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
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