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Eligibility for AIM

Should anyone be able to use AIM?

While AIM will initially be available to businesses under the $5m threshold due to the commonality of software programs, we are interested in submissions from larger taxpayers with bespoke systems on whether they would use AIM and what they would consider reasonable in terms of accuracy with adjustments required during the year.

For more detailed policy analysis and feedback opportunities in relation to the eligibility of larger taxpayers, click here

Do you think that AIM provisional tax option should be available to anyone who is willing to make the required tax adjustments?

Comments

Andrew Stellingwerf
There must be a way for small buisnesses like mine to take advantage of this without having an accounting software package?

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2 months ago
BG
Yes I think anyone should be able to use it. The current system is quite a burden on small companies and sole traders.

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2 months ago
No income tax for first 2 years
Small businesses should be income tax free in the first 2years of business then the tax rate should be tiered based on net profit. I.e. 10% 1-100k, 20% 100-500k, 30% 500k- $1m, 33% $1m plus or something to that effect. Paying income tax in advance is a guessing game and we get punished through interest charges if we get it wrong! The whole system needs reviewing. From small business to corporate.

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2 months ago
Adam Leslie
I totally agree that this system should be available to all uses, as surely the aim of it is to reduce both the level of confusion around Provisional Tax along with the risk that people aren't paying what they need to and therefore are getting penalized....Surely our Tax system should be striving to make this simpler for everyone!

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2 months ago
Asfar Mian
YES,I agree the AIM should be available to all and should replace the existing system.

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2 months ago
Joanna Hunt
Yes, as long as it doesn't end up with businesses owing more than they expect at the end of the year.

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2 months ago
Duncan Webb
Yes, any business should be able to pay tax as the business earns

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2 months ago
christine
I think all business should be able to use the system......

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2 months ago
Jonathan meads
It's sounds perfect , anyone should be able to pay this way as it is far more accurate with regards to income for the period or time of year , when can we start doing prov tax this way

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2 months ago
Janet Turner
Yes I think AIM should be available to smaller businesses

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2 months ago
Cindy Cooper
All taxpayers should be able to use AIM and in fact I would scrap the existing prov tax system and make AIm compulsory. It should be aligned with an entity's GST returns so it is paid either monthly, 2 monthly or 6 monthly at the same time GST is paid.

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2 months ago
David Hill
I think the concept is better than the existing system. It will require a bit of forethought, but not much more than required for just a GST return. It would need to be optional and be accompanied by goodwill, clear and PROMPT communication and capability on the part of IRD. It is essential, for fairness that, similar to GST, refunds can be available for seasonal business, without fear of penalties or use of money interest being charged. Initially I was thrown by the description used - of a $5 million threshold as the term threshold usually describes when something starts or kicks in, not an upper limit.

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2 months ago
Hector Urquhart
Yes

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2 months ago
Graeme Hughson
AIM should be available for self employed taxpayers with no income limit. My income is mostly earned over a 4 month period each year and I have a very significant provisional tax credit with IRD for a large part of the year under the current system.

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2 months ago
Shirley
Yes anyone should be able to use it

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2 months ago
tomo
why not

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2 months ago
Athol Stephens
If a taxpayer is willing and able to use it, they should be permitted to do so. But if it doesn't suit their type of business, they should not have to.

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2 months ago
Graeme Perry
Yes, all SME's should be able to use this sytem.

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2 months ago
andrew corstorphine
the existing system is archaic. All companies should be able to pay their tax monthly based on monthly results from a recognised computer accounting system. The problem we have is that the IRD,s computer system is no where near as good as its customers who can work out monthly profits the same as they can work out GST and Paye. Get a life IRD

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2 months ago
Roger Martin
Yes

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2 months ago
Sandra Kraakman
AIM should be available for ALL businesses regardless of size then all businesses are on a similar tax foundation/footing. There should also be an end of year requirement.

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2 months ago
Corrina Brown
AIM should be available to any business owner, irrespective of annual turnover

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2 months ago
Erin Watt
Erinwatt1926@gmail.com (link sends e-mail) Do I have to use the new accounting software in order to qualify for AIM?

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2 months ago
Fiona Campbell
Yes, this method should be available to all sizes of business entity, much more responsive to fluctuating/seasonal earnings than current system.

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2 months ago
Glenn Roycroft
It is obvious that provisional tax is out of step with earning fluctuations .Aim should be available to all small business / sole traders that have a proven good tax filing record

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2 months ago
george wilkinson
Having a limit is absurd,although not so much so if it is compulsory.Very few of my 200 or so clients have a multi-million dollar turnover,so on the current proposal,AIM would hardly ever apply.Once again the important point is for it to be optional as one rule does not fit all.

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2 months ago
David Srinivasagam
Yes

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2 months ago
Ben
AIM may be good option for those businesses who are interested in utilising it but I'm personally against making this a requirement. I use an accountant and would prefer to continue using my accountant as this alleviates any unnecessary risks in providing incorrect information.

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2 months ago
dave
Yes

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2 months ago
Jolene
AIM should definitely be available to all small to medium businesses. I disagree with there being a threshold of $5m turnover with those earning less not being able to use AIM. I also very strongly support this option being available to sole traders and others paying via IR3 returns. It is these small businesses and independent earners that can easily get into problems paying tax with the current provisional tax process in place at the moment. I just wish it was coming in sooner and for a wider range of tax entities/turnover levels ...

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2 months ago
Jackie Clark
I'd like to understand the reasoning behind limiting this proposed service to businesses under $5M. I expect that it is most suited to and desired by smaller companies, but I'd be interested to know whether larger companies would like it also.

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2 months ago
Paula Matich
Yes I think to those business whose annual turnover is under the proposed $5 million threshold.

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2 months ago
Gary Workman
Yes, I fully agree - Pay as you go is the way to go especially where provisional tax is concerned.

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2 months ago
Dale Oxenham
AIM should be available to all. I do agree with another company that the tax system is not set up to work with us but against us in that paye and gst really should be paid at the end of the month as payments frequently come in late or in following month. IRD needs to make friends with the people who pay their wages not have this hate relationship going on. It disgusts me the controlling manner of the IRD staff who come across as ruthless and have a careless attitude for the business people out there trying desperately hard to make their way.

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2 months ago
Coralie Evans
Yes

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2 months ago
Janine
Yes

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2 months ago
geoff ebdon
re 5 million limit, get real! This would take out a vast number of small businesses which this measure is presumably the ones your trying to help ( plus the government gets its money sooner which I'm sure is a motive).

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2 months ago
PJK
yes

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2 months ago
Bevan Walsh
Any business should be allowed to use AIM as their method of paying Provisional Tax, because it will increase compliance. I don't see the need for a threshold of $5 M - nor do I see a big problem with it - HOWEVER I think the idea that only businesses with a good history with IRD can use AIM is mad. IRD will benefit by having businesses with good and bad histories use AIM because AIM will increase compliance by reducing the amount businesses may get into arrears by. So you really want to get businesses with good - and businesses with adverse - history onto AIM.

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2 months ago
Bevan Walsh
Absolutely. The only criteria for a business using AIM should be that they are willing to do what it takes. IRD should remove all filters from who can use it (except that, of course, they should use accounting software).

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2 months ago
Kerry D
Yes, small and micro businessess particularly will benefit, $5 million is too high

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2 months ago
Steve
Referring to this and the previous question, Is the IRD treating any soler trader, self employed person or limited liability company (anyone or entity that pays provisional tax) that trades under the $5 mill mark as being eligible or is it companies only. As to whether any entity trading over the $5mill mark should be able to use AIM. Can't answer that as I don't know the implications for both IRD and the entity.

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2 months ago
Te Ruru
Yes

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2 months ago
Victoria
It should be avaialable for any business - sole trader/contractor or company - who chooses to use it. And no financial threshold.

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2 months ago
Jono
AIM for individual contractors and very small businesses (<5 employees) that monitor income in/out closely

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2 months ago
Bruce Webster
It should be available to all taxpayers/business entities , why have or set more constrictions around its use , one reason the GST ratio method is not used more

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2 months ago
Wendy
AIM should be available to all small businesses regardless of whether or not they use an accounting package. Those who would get the most benefit from it are the ones who have no need for packages and manage their businesses through spreadsheets and the like, such as independent contractors and consultants.

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2 months ago
Geoff
Yes. Absolutely needs to be available to self-employed people and those who receive a shareholder salary. I never know how much my annual income will be until the end of the year. So some years pay too much provisional tax and sometimes not enough. It is very frustrating.

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1 month ago
Shirley Wilson
Yes

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1 month ago
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