Here are 4 ways to make sure you’re on the right track:
๐ญ. ๐๐ถ๐น๐ฒ ๐๐ผ๐๐ฟ ๐๐ฎ๐
๐ฟ๐ฒ๐๐๐ฟ๐ป๐ ๐ผ๐ป ๐๐ถ๐บ๐ฒ.
๐ Failure to meet your obligations can result in severe penalties, including interest charges and shortfall penalties.
๐ย This can amount to 100% of the tax owed. Yes, 100%. So a $20,000 bill can turn into $40,000, excluding the interest.
๐ฎ. ๐๐ผ๐ปโ๐ ๐๐ฟ๐ ๐๐ผ ๐ผ๐๐๐๐บ๐ฎ๐ฟ๐ ๐๐ต๐ฒ ๐๐๐๐๐ฒ๐บ.
๐ Whether youโre underreporting income or claiming false deductions, tax evasion is illegal and could result in fines up to $50,000 or even five years in prison.
๐ Remember, your tax is essential for funding public services and infrastructure, such as healthcare, education, transportation, and social security.
๐ฏ. ๐จ๐ป๐ฑ๐ฒ๐ฟ๐ฒ๐๐๐ถ๐บ๐ฎ๐๐ฒ ๐๐ต๐ฒ ๐๐ฅ๐ ๐ฎ๐ ๐๐ผ๐๐ฟ ๐ผ๐๐ป ๐ฟ๐ถ๐๐ธ.
๐ Power to Reconstruct: The IRD can โre-doโ transactions to comply with anti-avoidance rules, often leading to higher tax liabilities.
๐ Retroactive Action: The IRD can review past transactions, so past actions are never truly โsafe.โ
๐ Penalties and Interest: Failing to adhere to these provisions could result in hefty financial penalties and interest charges.
๐ Legal Consequences: Persistent tax avoidance can even result in criminal charges.
๐ฐ. ๐๐ฒ๐ ๐ฝ๐ฟ๐ผ๐ณ๐ฒ๐๐๐ถ๐ผ๐ป๐ฎ๐น ๐ต๐ฒ๐น๐ฝ.
๐ In the world of tax, being proactive always pays off. If youโre not comfortable managing your taxes and accounts, get help.
๐ DM me if you want to book a meeting.
Bonus: Here are 3 tips you can implement today:
โ
Donโt pay the IRD late, but also, do not overpay tax. Remember, late payments attract penalties and interest, and refunds on overpayments get you a lower rate of interest than your savings account.
โ
Regularly move funds during the year to a separate bank account for taxes. This will help you not be out of the money at year end.
โ
You can avoid penalties and interest charges by always paying your taxes on time. Consider instalment arrangements or tax pooling if necessary.
๐ I talk more in my book, 10 Big Property Tax Mistakes That Cost Thousands. To download the full book for free, click below
https://lnkd.in/g_W7WNQK
I help Kiwi property owners save thousands of dollars in taxes by protecting them from costly errors.
๐ Follow me. Ring the ๐ to get notified when I post new tax tips and insights.
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