Tax Compliance

Liaise with IRD, penalties, tax matters, obligations, etc

Facing challenges with the IRD

Anyone who has had a run-in with inland revenue or had their tax return refused or audited can attest to the essential necessity of tax compliance.

Essentially, tax compliance entails being conscious of and adhering to international tax laws, as well as the obligations imposed by local government and other taxing agencies. Every business, including yours, must pay income tax on its net taxable income each year. Businesses who do not file their tax returns by the given deadline are termed noncompliant. They run the danger of not filing their tax return and incurring fines or penalties.

Businesses, on the other hand, must match their bookkeeping, accounting, and tax filing procedures with a distinct set of rules and regulations from those that control personal tax filing. In addition to paying income tax, businesses must also pay:

Sales tax on the goods and services offered by the business
Property taxes on real estate assets
Excise taxes and other administrative taxes
Payroll and employment taxes
Franchise or gross receipts taxes
Dividend taxes paid to shareholders

Failing to follow, disclose, and pay taxes in accordance with these rules can have serious implications for a business. This involves fines and other penalties, as well as negative consequences for their company’s reputation. That is why assigning these hard tasks to an expert team who are fully aware of all the ins and outs of this process can save your business a lot of hefty trouble. We will make sure you stay in the good books of the government.

Challenges with Tax Compliance and The Need for Professional Tax Accounting

A variety of variables can complicate and affect tax compliance. Non-compliance can come from something as little as missing a detail in a tax legislation or incorrectly estimating taxes owing.

Furthermore, tax policy changes every year. Our professional will sort your business and alter your tax reporting and filing in accordance with the latest legislation.

We specialise in taxation and can assist you in navigating changing tax laws, reporting and calculating the amount owing, and ensuring that taxes are paid on time.

How Accountants Ensure Tax Compliance

Our tax accounting experts not only ensure that companies and its employees are aware of and comply with all applicable tax rules, but they also have the knowledge to read and comprehend these requirements. Our team of accountants and auditors, have extensive knowledge of current tax legislation and best practises for tax planning. These specialists can assist businesses and sole traders in being tax compliant in the face of shifting rules and tax reform.

Our tax experts are also skilled in more particular aspects of taxes that may apply to businesses. This covers estate and gift taxation, inbound and outbound transactions in international taxation, and income taxation of trusts and other assets.

As tax reporting, filing, and guaranteeing on-time payments to taxing authorities are becoming increasingly complex, which is why experts capable of handling tax compliance properly are essential.

We can help you:

File Income Tax, GST, PAYE, and FBT returns
Establish tax planning opportunities that arise during the tax compliance process
Identify and address potential risks, including the most significant risk under a self-assessment regime of lodging a false or inaccurate return
Optimise the chances of having your return approved, thereby offering assurance over the tax position taken
Reduce the possibility of making a mistake, either through the return process or through tax health checks on your internal procedures.
Ensure that any tax planning or restructuring is properly integrated into the return
Communicate with the Inland Revenue and other tax authorities

Our collaborative approach emphasises regular, open communication with you and among our team. We do not participate in extensive lines of command; we think that you are best served by the appropriate people, with the right talents, collaborating with you to get the task done.

Our specialists can assist you in meeting your tax compliance responsibilities, reducing your tax burden, and minimising your tax risk. Our team understands the tax difficulties you encounter and is ready to relieve you of the compliance load so you can focus on what you do best.

PAYE

Pay as you earn (PAYE) is payable if you hire employees or pay yourself a wage. As a small business owner, you are also responsible for meeting these PAYE responsibilities through PAYE Withholding and collecting PAYE payments on behalf of your staff. PAYE must be deducted from earnings and salaries and paid to Inland Revenue on monthly basis.

Simply said, PAYE Withholding allows companies to collect income tax and the ACC earners’ fee from their employees and send it straight to the Inland Revenue. There are various factors to consider such as proper tax code and employee personal circumstances when deducting tax. Our experts have been helping small businesses stay on top of PAYE taxes and ensure that both employees and the government are looked after correctly.

You may be in charge of collecting PAYE Withholding amounts are deducted from salaries paid to:

Your employees
Other workers, such as contractors, with whom you have voluntary agreements.

Our team will ensure to file monthly returns and preserve proper payroll records for Inland Revenue.

GST

If you own a company in New Zealand, you may be required to collect Goods and Services Tax (GST) from your customers. This is applicable whether you run your business as a sole proprietor, contractor, partnership, or corporation. The Goods and Services Tax (GST) is a flat-rate tax on the supply of goods and services. This is typically 15%, although it may be “zero-rated” at 0% in specific instances.

GST registration is required if:

your turnover was at least $60,000 in the previous 12 months (or you believe it will be this amount in the future 12 months); or
you charge GST on the goods or services you sell.

Even if your company operates in taxable activity and reaches the turnover level, you are not required to register for GST if the goods and services it provides are exempt. For eg. Finance companies

GST registration entails not only additional work for your staff, but also greater stress, since these tasks demand knowledge and allow no room for error.

These criteria are subject to change as a result of changes in government policy. Not all businesses in New Zealand are obliged to register for GST, but you will be required to do so if you fulfil certain conditions. When considering if you need to register for GST, consult our friendly team and we can get your GST sorted.

Fringe Benefit Tax (FBT)

You may give perks to your employees in addition to their pay or earnings in your firm. Fringe benefits are non-cash perks offered to workers or associates of employees.

This is not the same as when you pay your staff. When you pay your employees in cash, you regard the payment as part of their salary or wage and make standard employee deductions, such as PAYE.

Some entertainment costs may be subjected to FBT if they are consumed or obtained by employees.

Get your tax affairs right with IRD

No matters what your situation is, we will understand, assess and provide the right guidance in your tax compliance.

Get in touch with Us

Please feel free to have a chat with us.
We provide a FREE 15 minutes consultation advice to new clients.