RSM New Zealand

7 July vs 31 March - when is your tax return due?

Did you know that if you use a registered tax agent like RSM New Zealand, you are granted an extension of time to file an income tax return?

The most common tax period in New Zealand is from 1 April to 31 March the following year, but are you aware that there are two different deadlines for filing a return?

Due 7 July

Preparing and filing your own tax returns means you only have a few months from the end of the tax year to lodge your tax return.

Due 31 March

A registered tax agent has what is referred to as an agency list.  By engaging a tax agent you are added to their agency list and granted an “extension of time” with the Inland Revenue Department (IRD).  This gives you an additional 7 months in which to prepare and lodge your income tax return. 

For example;

Tax year

Tax period

Due date
not using a tax agent

Due date
with a tax agent

2016

1 April 2015 to
31 March 2016

7 July 2016

31 March 2017

2017

1 April 2016 to
31 March 2017

7 July 2017

31 March 2018

What happens if I use a tax agent and I still don’t meet the extended filing deadline?

If you are filing your own tax return and miss your 7 July deadline, you will be charged late filing penalty by the IRD. 

If you are using a tax agent and you miss the 31 March deadline you lose the privilege of having an extension of time in following tax years.  This means that you are still on your tax agent’s agency list, but your filing deadline reverts back to 7 July for the next tax year.  IRD charges penalties for late filing, late payment or short payment. 

Penalties don’t stop there – the longer you leave them the more they cost

Once you lose your extension of time you are able to get it back by bringing your filing requirements up to date.

So what are you waiting for?  Contact us and you will never have worry about your tax requirements again.

click here To find out more about our tax services

 

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Authors

Craig Cooper
Partner - Auckland