Tax Return Filing Dates
A: If you have an Extension of Time to file, the date is 31 March. If you are linked to a Tax Agent or Accountant, then usually you will have this extension. Note that the IRD must receive your tax return by this date i.e. if you post it on this date, it will be late.
Q: Cool, so I can send my info to you guys about the middle of March and that will be ok then? That gives 2 weeks to get it sorted, right?
A. Sorry, but no. In order to get the figures right, there is a process of many eyes checking your financial statements/tax return/s. So we recommend that you allow 8-9 weeks at least for us to collate, code, compile, check and file your financial statements and tax returns.
A: Yes. You will have income or loss from the LTC and this has to be declared to Inland Revenue via a personal tax return.
A: You'll see your LTC losses (if applicable) shown in box 19E (on the personal tax return, or IR3).
How Do The Amounts On The Profit & Loss Relate To My Tax?
This loss amount (or negative amount) is then put on your tax return. It offsets other income you have received. In this sample, assuming the person is being taxed at 33c in the dollar (ie they earn over $70,000 per year), then they could expect a refund of about $3,500.
How is the Tax Calculated?
Dividends - AECT/Entrust
A: The Entrust dividend is shown on the tax return as follows
- gross dividend
- less dividend imputation credits
- less dividend withholding tax
Using this formula, we arrive at the $300-something you received. You can see the exact breakdown here
Q: Does my LTC get a refund as well as me?
A: No. If you have an LTC, the refunds go to you. The company is Looked Through at tax time, hence the name Look Through Company.
A: Probably. All returns filed are subject to review by IRD, and sometimes they don't agree with our calculations. There are a number of reasons for this:
- debts or credits we may not be aware of
- keying errors by IRD/ourselves
- other factors
However, don't panic. All errors, wherever they are made, can be easily rectified.
A: That is what the personal tax return form is called: an IR3. (If you are not NZ tax resident, the form is an IR3NR). The actual filing online takes about half an hour. Then IRD processes it, which can take anywhere from 1 week to 12 weeks or longer. Once they’ve processed it, you then receive your tax refund.
Other FAQs you might have:
RENTAL PROPERTY: WHAT RECORDS DO YOU NEED TO KEEP?
USING ACCOUNTANCYONLINE.CO.NZ/MY TAX QUESTIONNAIRE
HOW DO I DOWNLOAD TRANSACTIONS FROM MY BANK'S ONLINE INTERNET BANKING?
WHAT IS XERO.COM?
WHAT'S THE PROCESS FOR MY TAX RETURNS?
COMMON QUESTIONS ABOUT YOUR FINANCIAL STATEMENTS