Date posted: 01/03/2022 4 min read

Accountants call for end of year tax certainty

Chartered Accountants Australia and New Zealand (CA ANZ) welcomes the Government’s decision to reinstate flexible end of financial year tax return dates for COVID affected taxpayers, saying that it will provide many businesses with certainty of concessions for tax return filing.

Chartered accountants around New Zealand have expressed concern about the potential for disruption to tax return filings, where client information is delayed, or staff availability is impacted by the Omicron surge and the restrictions of the red traffic light protection framework setting.

Following discussion with Inland Revenue, CA ANZ made a series of proposals to help taxpayers affected by COVID, based on experience from the last two years. Pleasingly, Inland Revenue has acted by reintroducing the first instalment of COVID related concessions.

“Omicron cases are surging, and businesses are under pressure. Delays in information and tax agent staff shortages due to close contacts and illness are affecting businesses’ ability to complete income tax returns,” said CA ANZ Tax leader John Cuthbertson FCA.

“Chartered accountants around the country are saying taxpayers and tax agents need certainty that there will be concessions regarding their tax filing position and deadlines, as there have been in other COVID affected periods.”

“We’re pleased to see that Inland Revenue has listened and moved to reinstate flexibility on all due dates and payments, and to allow for late filing of 2021 income tax returns for COVID impacted taxpayers.”

“We’re still waiting to see if there will be a concession for related elections and finalisation of loss offsets, trust distributions and subvention payments."

“CA ANZ also called for an extension to the tax pooling deadline and settlement date for tax financing. If tax returns are delayed, businesses may have difficulty in finalising their end of year tax position, let alone making the payment.”

The ability for businesses impacted by COVID to tailor provisional tax payments without impact on “safe harbour” and interest concessions is important to business taxpayers.

“Business owners have had a tough summer. The decision to provide flexibility on the payment of provisional tax will be welcomed by business owners.”

Mr Cuthbertson said it was vital that the Government looked at what worked well over the last two years of COVID and reinstated or extended as many of those as possible, to assist businesses whose finances have been hit hard.

“Allowing late taxes to be paid off in instalments, without penalties and use of money interest, was effective in helping businesses previously, and is a measure worth revisiting.”

ENDS

For more information contact:
Daniel Webster, Chartered Accountants Australia and New Zealand
M +64 27 282 6253
[email protected]

About Chartered Accountants Australia and New Zealand
Chartered Accountants Australia and New Zealand represents more than 128,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.
www.charteredaccountantsanz.com

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