You may have heard that the IRD have introduced some changes to the way they manage Provisional Tax.
For many years, some of the biggest gripes we have heard from our clients have related to Provisional Tax.
Why do you have to pay tax based on guesses as to what you are going to earn, and then get penalised if you get it wrong? And yes, we know that Use of Money Interest (UOMI) is actually interest and not a penalty, but people still see it as a penalty, especially as the IRD charge and pay interest as if they are a bank- they pay it at a low rate and charge it at a high rate.
Finally the IRD have listened and have taken the first steps towards making it a bit fairer. Read More »