Taxing Matters: Sponsorship and IRD Payments

Taxing Matters provides a summary of topical tax and business information relating to individuals and business.

Deductions for Mid-winter Staff Christmas Function  Expenses associated with staff mid-winter Christmas functions are 50% deductible for tax purpose regardless of whether the function is held on or off the business premises.

Sponsorship  The IRD’s position is that for sponsorship to be deductible there must be a connection between the sponsorship expenditure and the business or income-earning activity.

IRD Payment Details  When making payments to the IRD, taxpayers are strongly advised to notify the IRD of the period that the payment relates to, i.e. 2013 for the 2013 income tax year etc and the tax type being paid.
The IRD uses a three letter code to identify the tax type.  Common codes include “INC” (income tax), “FBT” (fringe benefit tax), “GST” (goods and services tax), KSR (employer KiwiSaver contributions), KSE (employer KiwiSaver deductions) and IPS (RWT on interest).
Using the correct period and tax code will help ensure that the IRD allocate payments to the correct place.

IRD Use of Money Interest Rates  The current use of money interest rate charged by the IRD for tax underpayments is 8.40%, while the rate for overpayments of tax paid to the IRD is 1.75%.

2013-07-05T10:48:12+00:00July 5th, 2013|Accounting, Tax|

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