Part four of our learning series features the Purchase for Reassessment scenario on your QUICKStart tool, found in your Manage Tax menu.
If your taxpayer has had a voluntary disclosure accepted by IR or has been subject to an audit, tax pooling can often help reduce Use of Money Interest charges. Through QUICKStart choosing the Purchase for Reassessment scenario will direct you through to our Buy tool.
There's some key criteria which your taxpayer needs to meet to be able to use tax pooling for a reassessed period:
- Tax purchases must be completed and transferred to IR within 60 days of the date of issue noted on the taxpayer's reassessment notice;
- An initial return must have been filed and paid for the original period;
- The tax purchase may only be for the increased liability for the period/ year (i.e if the original RIT was $100,000 when filed and the reassessment concludes the new RIT is $120,000, your taxpayer can only purchase a maximum of $20,000).
WHAT TAX TYPES CAN YOU PURCHASE FOR A REASSESSED PERIOD?
You can set up purchases for reassessments for any of the following tax types:
- Income Tax
- Goods & Service Tax
- Fringe Benefit Tax
- Non Resident and Resident Withholding Tax
- Employer Superannuation Contributions Tax and
- Retirement Scheme Contributions Tax
HOW DO I SET IT UP?
- On setting the initial historical tax period a purchase is required for, when you click Start to go through to your tax requirements page, the reassessment criteria will populate on your screen.
- Enter in the tax type, tax period and tax dates required along with the amounts of tax required at each date and hit calculate.
- Read through and confirm by completing each tick box that your purchase will meet IR requirements (this includes specifying the reassessment date).
- Just like a standard current period income tax purchase, when you're ready to proceed you'll be presented with payment options which can be customised to suit. The system will automatically limit your payment date options so the purchase is completed with sufficient time to be transferred to IR to meet their time restrictions.
- You can Save, Print or Email your estimate for review with your taxpayer.
- When you're ready to proceed, return to your estimate through your Saved Estimates tab on your dashboard and click Submit to generate an emailed invoice.
Hints and Tips:
- ADD EXTRA PERIODS: If you need more tax periods than are automatically generated on your buy calculator, you can add additional periods by clicking on the +Add new period button below your tax requirements table.
- SWAP: If your taxpayer has deposit funds in the pool from current or prior tax years, you can use the Swap tool to purchase tax at the correct tax date. Note, this is different from using the Buy tool and the Swap tool is accessed outside of the QUICKStart menu.
- CONTACT US: Voluntary disclosures and reassessments can be complicated - feel free to get in touch with our team to discuss your taxpayers situation before setting up a purchase. We are always happy to help work through a reassessment scenario. Let us assist you in highlighting the potential savings compared to settling with IR directly.