At this time of year a lot of you will be busy with end of year filing of tax returns. IRD are also busy getting ready for their peak tax season – and we are all hoping that their many system changes this year will cause no issues for all!

Some items to reflect on before the end of year may include:

  • Imputation credit accounts will not be in a debit situation
  • Consider paying dividends to clear out retained earnings
  • Consider loss offsets and subvention payments – which might be better for you?
  • Review fixed asset schedules
  • Consider valuing inventory
  • Check prepayments and what needs to be added back for tax
  • Check bad debts and do they need to be written off?
  • Look through company elections

As we approach 1 April we should also be mindful of new changes coming into effect including:

  • LTC eligibility requirements (Check our Friday Tax Update 20/01/2017)
  • Withholding tax regime (Schedular payments) – changes for contractors. We will be reporting on this in more detail in our upcoming Better Business newsletter.
  • Changes to the provisional tax use-of-money interest rules (for the 2018 year)
  • Removal of the 1% incremental late payment penalty for certain taxes
  • Information sharing of tax debt to credit reporting agencies.