AIM has been developed in response to your feedback.
- You’ve told us that provisional tax is inflexible and has minimal integration with the natural rhythms of running your business.
- You are concerned about exposure to use of money interest, and penalties.
- The uncertainty in knowing how much you owe Inland Revenue causes you stress.
- You’ve also told us that accounting software is a big part of your business and you wish your tax was more integrated with it.
AIM has been developed in response to this feedback. This proposal means that from 1 April 2018, businesses with gross income less than $5 million can meet their provisional tax obligations as the year progresses and avoid any use of money interest costs.
All you have to do is:
- Keep entering your business information into your software package.
- Make a small number of adjustments to help calculate your provisional tax liability.
- Initiate the payment and transfer the data to Inland Revenue.
No profit, no payment.
You are in control.
If you also file a GST return then everything can be done at the same time. No extra steps and you can have confidence that your provisional tax is much closer to your final liability.
If your income drops and you have overpaid provisional tax, we’ll give it back to you during the year rather than waiting to year end.
"Inland Revenue is the trickiest thing to running a business. It’s hard to know where we are at with our tax”.
“I think it’s great that IR want to work with business to simplify the whole tax process”.
“It might only save me a few minutes but its still worthwhile”.
“Less administration, working faster”.