August 2015 E Newsletter

Welcome

Welcome to the August edition of Focus.  We're past half way through the year now, it's hard to believe Christmas is less than five months away!  This month we're looking at changes to NZ Post and Companies Office and the targeting of cash jobs by the IRD. 

NZ Post Changes

The IRD have recently issued reminders about delays in the postal system and payments not getting to them on time.  Changes made by NZ Post mean that from 1 July 2015 mail is only getting delivered to the IRD three times a week, so please take this into account when sending payments by post.  The postal address to use when making payments or sending in any return is:

PO Box 39050, Wellington Mail Centre, Lower Hutt 5045.

Any payments that are received late, no matter the cause of the delay, can be subject to late payment penalties and interest charges.

Alternatively you can file returns and make payments through the myIR secure online services accessed through the IRD website.  You can also use this online account service to review past returns that have been filed, check when payments are due and register to receive email alerts of upcoming filing dates so you don’t miss any.

Companies Office Changes

We would just like to remind you of the recent Companies Act amendments that require all directors to provide their date and place of birth to the Companies Office. The information must be provided when file your first annual return after 1 July 2015, if you have not already done so. If we prepare the annual return for you, we will ask you for the information and we will update the Companies Office details. If we do not prepare your annual return, please ensure that you update the website yourself (or let us know if you would like us to do it for you). This information is not available to the public to view on the website.

At the same time as the above, you need to supply details of your ultimate holding company, if this is applicable. If you are unsure, please ask one of our team.

IRD Targeting Cash Jobs

You may have read recently in the news about the Inland Revenue’s campaign to encourage tradespeople to comply with their tax obligations by declaring and paying tax on all their income. This doesn’t just apply to tradespeople, however – all cash income you receive is taxable.

If you are in an industry where cash jobs are common, remember to record all the income you receive and ensure you advise us when it’s time for us to prepare your tax returns.

If you realise you have not declared all cash income received, you can lodge a voluntary disclosure with Inland Revenue to correct this. The advantages of making a voluntary disclosure before you’re notified of an audit are that:
• you won't be prosecuted, and
• any shortfall penalties will be reduced.

If you are notified of an audit before making a disclosure you may be prosecuted and penalties may not be reduced. Contact us if you think you need to make a voluntary disclosure, and we’ll assist you with this process.