Tax Commentary

IRD has recently implemented a reasonably consistent policy across some of its service delivery divisions. In this article we provide details and comment on areas still needing improvement.

Read on “IRD use of email and electronic spreadsheets- update”

This article explains the risks associated with filing IR10 accounts information forms and recommends filing financial statements as well or instead. It also highlights the way IRD misleads the public in denying any disadvantage of using IR10 forms.

Read on “IR10 Accounts Information forms – Don’t rely on them”

In early 2010, over two years ago, we alerted and IRD accepted  that the IR886 form was not collecting appropriate information.

We also noted that residence decisions were being made by staff who were clearly inexperienced

We identified many incorrect rulings by IRD, some of which we quickly overturned and some of which have led to lengthy and expensive disputes.

We redesigned the form for our own clients’ use and in good faith provided a copy to IRD

As at today’s date IRD has still not published any update to the form, and even though the form gives incorrect outcomes, tells taxpayers that they ‘MUST’ complete it.

Our advice:

• Use of the IR886 form is not compulsory;
• It focusses entirely on NZ as opposed to overseas connections;
• It gives a misleading impression to both taxpayers and IRD;
• Don’t use it – get professional advice instead
• We have designed our own form which collates appropriate data for all countries where the taxpayer has connections

Two electronic tools used extremely commonly in business are e-mail and excel spreadsheets. In this article we comment how Inland Revenue uses (or refuses to use) them. We also include a document (obtained following an Official Information Act request) that sets out policies applied by SOME parts of Inland Revenue.

Read on “IRD use of email and electronic spreadsheets”

In this page we will publish material in relation to the 23 August Supreme Court judgment in Penny and Hooper vs Inland Revenue.

Early days yet, we start with our interview on Radio NZ Morning Report.

We welcome any comments to jeff@owenstax.com

In requiring taxpayers to sign ‘agreed adjustment” forms, IRD staff continue to breach standards, including those published by Inland Revenue itself.

From our repeated experience, crucial IRD staff breaches are:

• issuing agreed adjustment forms when there is no agreement
• failing to disclose use of money interest, potential penalties, and even other tax types
• demanding the taxpayer to sign within a very short time
• using other coercive tactics to get taxpayers to sign away their rights
• We strongly recommend that before signing such a document you read the contents of this article and if in any doubt seek urgent expert advice.

Read on “IRD agreed adjustment forms – get advice before signing”