Bitching about the IRD
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By Brenda L in General Published: Thursday, 02 July 09 - 10:57 PM (GMT +12:00) Last Updated: Friday, 03 July 09 - 12:03 AM (GMT +12:00) |
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As I don't have half an hour to wait on the phone to talk to the IRD, and as you have to talk to them on the phone in order to activate the online registration that you need to do in order to email them, I will blog my rage. It's the done thing.
So my current issue is to do with provisional tax.
A few points to describe the situation as I understand it:
- provisional tax is essentially paying your tax throughout the year to avoid a massive bill at the end of the year.
- provisional tax for 2008/09 is based on your earnings in the 2007/08 tax year.
- the theory is, you pay in 3 installments throughout the year (which are calculated by IRD) and at the end of that financial year you either pay more or get a refund.
- you won't know for sure how it all pans out until you've done your tax return sometime after 31 March.
What I discovered this week is that even though I have paid all my installments - as calculated by IRD - on time, and I have submitted my 08/09 return before the due date, the IRD are charging me interest on the difference between what I paid and what it turns out I should have paid as my earnings were more than the year they based their assessment on.
Even though I am not overdue with my tax, and even though there is no way I could have known for sure what I would be earning and therefore how much tax I should pay until I did my return. And even though I am not overdue - they charge interest on what I owe - before I even owe it! A Lot of interest.
That really sucks!
Can anyone shed any light on what gives the IRD a mandate to charge this interest? They don't even say what rate it is charged at, or from when exactly. But it's calculated daily - and is way more than any interest I have earned having that money in a savings account.
Fuckers.
4 Comments so far: |
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| you earned more than you did the previou (...) | sue | 07/03/09 |
umm, actually sue
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Matt | 08/22/09 |
| It's called... | kiwiwit | 07/14/09 |
| GO TO-free_ben_and_olivia@live.com TYPE (...) | Alix | 08/03/09 |
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Top | Reply to this Author: sue (http://www.supervery.com) Date Posted: 03 Jul 2009 07:22 PM (GMT +12:00) you earned more than you did the previous year. What IRD expect from you is to have notified them of this so you could have paid more prov tax. Your accountant sdhould have talked you through this, so you could decide wether or not to pay more in case you earned more the best part, if you overpay, you don;t get to charge them interest
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Top | Reply to this Title: umm, actually sue Author: Matt Date Posted: 22 Aug 2009 02:56 PM (GMT +12:00) you do get paid interest if you over-pay. It's at a considerably lower rate than what they charge if you under-pay, but they do pay interest. As for what mandate, it's called use-of-money interest and the rationale is that the IRD aren't a bank. They don't want you to over-pay, and thus earn money from them by using them as a savings facility, and they also don't want you to under-pay and thus use them as a credit facility. You can get money from your bank or save money with your bank at rates that are far more advantageous to you than the rates set by IRD. Which, incidentally, are published on their website if you go looking. |
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Top | Reply to this Title: It's called... Author: kiwiwit (http://kiwiwit.blogspot.com) Date Posted: 14 Jul 2009 10:44 PM (GMT +12:00) theft, extortion, larceny, highway robbery, standover tactics, demanding with menace, thuggery, protection racket, etc.- when the same approach is used by anyone other than the tax department. |
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Top | Reply to this Author: Alix Date Posted: 03 Aug 2009 01:31 PM (GMT +12:00) GO TO- free_ben_and_olivia@live.com TYPE IN PASSWORD- Freebenandolivia DO IT SOON AND SEE WHAT THE GOVERNMENT ARE HIDING BEHIND OUR BACKS. Government have stalled my emails. Check tonight before the email address closes. Download information- Do not publish any information. But beware of the MEAnz cover-up. Read draft folders- open all folders- take information. Sorry about spelling mistakes on email account- rushed job. |
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