BREAKING NEWS

PROPOSED TAX CHANGES - FEBRUARY 2010:

The government has announced that there will be significant changes to the tax system in the near future.  Full details will be given in the Budget in May 2010.  However, there have been a number of possibilities discussed in the media in the past few weeks, particularly after the publication of the Tax Working Group's report in late January.  Here is a very brief summary of the items identified by the Prime Minister in his speech to Parliament on 9th February 2010 -

Ruled Out:

• Land Tax
• Capital Gains Tax
• Return on Equity Calculation on Investment Property

Not Ruled Out:

• Disallowing depreciation claims on buildings
• Ringfencing of losses on investment property

Signalled as Likely:

• Increase in rate of GST (up to 15%)
• Cuts in personal tax rates
• Review of welface (including top threshold for WFF claims)
• R & D tax credit system to be revived

PROVISIONAL TAX PAYMENT DATES:

Last year was the first year where the provisional tax dates were aligned with the GST payment dates and this is still taking a bit of getting used to!

If you are registered for GST on a one or two monthly basis with a 31^st March balance date the 2010 Provisional tax dates are:

1^st Payment                     28^th August 2009

2^nd Payment                    15^th January 2010

3^rd Payment                     7^th May 2010

Terminal Tax (2009)        7^th April 2010

If you are registered for GST on a six monthly basis with a 31^st March balance date the 2010 Provisional tax dates are:

1^st Payment                     28^th October 2009 (50%)

2^nd Payment                    7^th May 2010 (50%)

Terminal Tax (2009)        7^th April 2010

CURRENT ECONOMIC CLIMATE & TAX COMMITMENTS:

If you are struggling to make your tax payments whether it is Income tax, GST or PAYE do contact us so we can make arrangements with the IRD.  If you enter into an arrangement early the penalties are reduced. If taxes are left unpaid the debt grows quickly and the IRD are not always accommodating.

We look forward to the new financial year starting and seeing you soon!