Tax payments – When received in time
There has been changes to the interpretation of when tax payments are received, this is to update the legislation to incorporate technology changes with a shift to digital methods of payment.
These apply from 1 March 2019 and include:
Post dated cheques – These are now accepted by the IRD, the IRD will however make their best efforts not to bank a post dated cheque. This is a change from the proposed publication that we have previously issued stating that from February 2019 IRD would no longer accept post dated cheques.
Payment received in time – For a payment to be received in time it must be received by the IRD on or before the due date. For electronic payments (which is the preferred method of payment) the funds must be cleared so please check your banks processing schedule; for cheques this will be the date the cheque is received by the IRD (Post dated cheques must still be received before or on the due date); for Debit or Credit Cards this will be when the funds are paid or direct credited to an IR account (note: a 1.42% fee is incurred except for payments of Student Loan and Child Support debt); or for cash/eftpos paid at a Westpac Bank branch it will be the date the funds are processed (note: no returns are accepted at a Westpac Bank branch, only payments).
Kiwibank has announced it is phasing out cheques for its customers. It will stop issuing cheque and deposit books from 30 September 2019 and will go cheque free from 28 February 2020. We expect other banks to eventually follow suit.
Non-working days – Where a return and payment date fall on a non-working day, then both the return and payment will be due the next working day. Changes have been made to clarify non-working days which include: Saturday or Sunday’s; regional holidays (within that area only); national public holidays and the period from 25th December through to 15th January. Essentially these are days where the IRD or Westpac Bank would not be open to receive payments.