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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

Melissa
We would be under the threshold but I would definitely be interested in doing this.

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2 months ago
Jacinta Penn
Yes depending on cost to the government. Larger companies have accountants inhouse who can manage the current tax system easily whereas small businesses don't, and the AIM system is great for us. Start with small business, test it out, see what the cost to government is.

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2 months ago
Dan Childs
Yes, of course. Why is this question even being considered?

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2 months ago
Casey
yes

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2 months ago
Graham Black
Yes it should be available to all but optional

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2 months ago
Graham Alderton
No I don't think there should be a threshold. If you have to pay provisional tax and the software is available to help you manage it why not make it available for everyone.

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2 months ago
Gregory Coogan
I believe every small business should have this option regardless of their annual turnover. Having a 5 million dollar threshold seems ridiculous when many small businesses would never reach that level of income.

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2 months ago
Jeremy Cullen
Hi, yes I think anyone should be able to use the AIM method of payments. The $5 million thresh-hold is ridiculously high and excludes virtually every small business/self-employed sole trader who feel the pressure of provisional tax payments the most.

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2 months ago
Daryl Thompson
yes

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2 months ago
Bronwyn
Yes

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2 months ago
Ian Hollins
Yes

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2 months ago
Hamish
My idea of a small business is obviously a lot smaller that the governments! My turnover is less than 1 million but I would still like to be able to use AIM.

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2 months ago
Diane and Trevor Gibb
Should be available to all!

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2 months ago
Kate Smith
This will be of most use to small and single person businesses with variable revenue for year to year - cash flow is the issue that most of us struggle with in regard to the current provisional tax system. Very many of these businesses will not come close to a $5m threshold.

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2 months ago
Jane
Yes anyone! Don't be stupid - be fair. ALL of us should have the ability to use AIM

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2 months ago
Hayden McCall
Yes. AIM should allow anyone who wants to pay their provisional tax on a similar basis as their GST payments (in arrears) to do so. Restricting AIM to those with compliant financial accounting systems doesn't make sense. Automated integration to IRD for submitting returns should be an option to consider in its own right.

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2 months ago
ian wroe
Yes

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2 months ago
wendy sealey
yes. IRD might get a better uptake of payment on time but maybe not so much income from penalties....bugger!!!

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2 months ago
Kim
I think it should be open to any business regardless of annual income. Perhaps a few questions for each business to answer will indicate weather it suitable rather than a total income criteria.

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2 months ago
Renee Riley
I think this should be available to everyone with accounting software to do so.

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2 months ago
Jan
Yes

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2 months ago
Priyan
Yes - why not keep it simple as possible and allow everyone to pay of estimated income each month . Penalties may be OK if less than 90% of actual tax payable for the year. is not paid by month 11. W e are accountants, provisional tax is the most difficult concept to explaan to SME clients

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2 months ago
Kevin
Yes anyone to qualify. It is not clear to how the $5M comes in - is it the income required to qualify or the income at which you no longer qualify for the PAYE provisional tax. Not a practical level and should be discarded.

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2 months ago
Mark Jones
as long as its helping and making everyone pay there fair share. small to medium sizes business it what keeps this country going with tax not the big boys. help the little guy with easier tax laws, maybe like your threshold under 5M pay a flat rate on all transaction, no other tax on this tax on that or depreciation this and that. keep it simple. i havent done the numbers on this so a flat rate may not work but small business needs "simple" we dont have the income to pay penalties for small errors

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2 months ago
Jarrod
ye sit should be open to all

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2 months ago
peter morice
yes

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2 months ago
Graham Woods
I agree that $5 million is probably fair but that it should be reviewed annually to see that it is working for those who opt into it.

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2 months ago
Anna Kane
I agree with a pay as you go (in arrears) system for small businesses and individuals on provisional tax

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2 months ago
Jan C
Yes, should be available to anyone who wants to make calculating and paying tax easier

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2 months ago
Kate Barry-Piceno
Yes. For example, If the taxpayer is using an approved accounting system such as MYOB or Xero, and is GST registered, then their accounts will be kept up to date throughout the year. This should be available to alot more businesses than just those with over $5million turnover.

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2 months ago
Michael Lea
All provisional tax payers should be able to use AIM; I am retired and the major portion of my income comes from overseas and so is as volatile as the exchange rate! I never know from month to month how much I'll get in our local currency (on which I pay my tax) hence I am sometimes heavily penalised by paying provisional in advance (based on last years income)

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2 months ago
Clay Nelson
I believe anyone should be able use AIM as it is the startups that are doing to dramatically change in revenues

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2 months ago
Abby Bishop
Great idea. Think that everyone should be able to do it, but trialing it with a smaller group first ie under $5million could be a good idea first.

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2 months ago
John Gibson
How will the dept monitor people who are not accounting trained and code capital items to expense accounts in their acctg software. At the moment we as accountants pick up these errors. If any Provisional tax taxpayer currently wants to pay their tax monthly , provided they are organised and get the accounting records into their accountant within a month of their balance date and their accountant promptly completes their accounts and tax returns, the taxpayer who wants to pay their provisional tax monthly can set up a monthly automatic payment equal to 1/12th of the annual provisional tax bill and make the payments monthly to IRD. I believe the IRD are missing the point here. The people who struggle with their provisional tax payments are from our experience mainly disorganised people when it comes to their accounting records and who are not disciplined enough to put their tax money aside. I would rather put my tax savings aside each month into an interest earning account and pay my provisional tax instalments as and when they currently fall due . The same disorganised people are likely to create a real mess for themselves,IRD and their accountants if they pay provisional tax based on what they perceive to be correct entries into their accounting systems. Will they get penalised in a month where they code a capital expenditure item to an expense code thereby possibly making a tax loss for the month ( by their records) and hence paying no tax in a month when they should have paid tax if the capital expenditure item had been correctly coded?

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2 months ago
Chris Kitzen
$5 mil is a good start. Anything is better than the current provisional tax method

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2 months ago
Dawn Thomson
AIM should be available to all individuals and companies with no threshold.

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2 months ago
Chris Kitzen
Perhaps eventually. Unlikely I will get to the proposed turnover in the near future so it wont really matter to me either way.

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2 months ago
barbara harder
Yes

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2 months ago
Jayden Brown
Yes. 100%

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2 months ago
Geoff Sargent
I believe all interested businesses should be able to use this system, an opt in ability would be the way to go for any business that wishes to regardless of turnover

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2 months ago
craig
I reckon so.... At the moment I get asked if I want to make a provisional tax payment..but really feel I am always a bit behind the 8 ball so prefer to defer it if at all possible.My income is very variable at times due to NZ dollar and tourist trends earthquakes etc...

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2 months ago
Chris Davidson
Yes

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2 months ago
Clare Digby
Yes should be available to sole traders as well

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2 months ago
Hilton Shuttleworth
I am happy for this method to be offered as an option, but not enforced.

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2 months ago
Debbie Jefcoate
I see no reason why any business shouldn't have the option

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2 months ago
Debbie Jefcoate
yes

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2 months ago
Debbie Jefcoate
yes

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2 months ago
Julia Dawson
Yes if it's a choice and not compulsory

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2 months ago
Mike
yes

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2 months ago
Leona taylor
Yes AIM should be avaliable to small business or any individual who has to pay provisional tax regardless of turnover

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2 months ago
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