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Articles by John Rowe

Going Down - IRD reduces rates!

AUTHOR: John Rowe

POSTED: 04 August 2009

At last some good news out of Inland Revenue.

Fringe Benefit Tax (FBT)

The FBT rate for low-interest loans will fall from 8.05% to 6.41% from 1 July 2009.

This has come about due to the continuing effort to try and align the rate with the variable first mortgage housing rate. Bluntly, it was not fair to have the FBT rate above that being charged by the banks.

Use of Money Interest (UOMI)

Use-of-money interest rates charged by the Inland Revenue on unpaid tax have been lowered from 9.73% to 8.91%. The interest rate paid on overpayments of tax paid reduce from 4.23% to 1.82%. Regretfully, there still remains a large gap between the two.

Please contact us if you would like help to understand how these changes affect you personally and your business - if applicable.

Request a Meeting

John Rowe
Director
Business Accounting Services

09 522-7955

jr@gra.co.nz

© 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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