|Posted on 11 August, 2019 at 17:40|
Provisional Tax and UOMI
Chris Lynch, Director
Lynch & Associates Limited
Auckland, New Zealand
When paying your provisional tax payment please make sure you pay the exact amount as advised in our reminder letter for your 28 August provisional tax instalment (assuming standard balance date).
Please make sure you state the exact amount payable down to the last cent, or at least round up to the nearest whole dollar.
Inland Revenue’s system calculates provisional tax payments to the cent (i.e. $12,500.47 rather than $12,547.00).
If the exact amount is not paid by the due date, the concessional UOMI provisions will not apply and you may be liable for Use of Money Interest from the first instalment date.
This, of course, is very unfair but who said life was fair? This is how the legislation works and to change it would require an amendment to the legislation.
Inland Revenue has been notified of this issue and a recommendation put forward that their system should build in a buffer of a few dollars.
Talk to us, we can help. Ph. Chris on 09 3666008or email: [email protected]
Categories: Tax and Compliance