Record tax payments

Modified on Fri, 21 Jun 2024 at 04:53 PM

Overview

Record all tax payments made or received, and choose whether transactions should influence the tax return, tax provision, and/or the imputation credit account.

Our integrations with Inland Revenue and various tax pooling providers, will automatically import transactions for your convenience:

  • Inland Revenue Connection: Transactions from Inland Revenue are automatically populated in the designated section.
    • Our systems connection with IR will import all transactions IR processes, including those they reverse which may not be reflected in myIR. So you may notice that the volume of transactions visible in Taxlab may be different to what is in myIR.
  • Tax Pool Connection: Similarly, transactions from tax pools such as Tax Traders or Tax Management New Zealand are automatically populated in the Tax Pooling section.

When adding a transaction, selecting the "Impacts the ICA" checkbox automatically populates the transaction in the Imputation Credit Account tab. From there, you can review and update the ICA disclosure as needed, ensuring accuracy down to the transaction's effective date. 

Please note: Only connections for tax agencies are able to receive tax payments information from Inland Revenue. 

Transaction groupings and views

Transactions are grouped into five categories: Tax, Credits, Interest, Penalties, and Other. You can view these transactions in three different ways:

  • TaxLab Categories (Default View)
  • Inland Revenue Categories
  • All Transactions

Utilise the cog to switch to your preferred view. Further, the Expand/Collapse buttons allow you to drill down to the necessary details. Use the date picker to filter transactions by tax year or view all transactions across tax years.

Adding transactions

Simplify the process of adding various types of transactions:

Tax payments

Manually add tax payment (or refund) transactions made with Inland Revenue or a tax pooling provider.

  1. Navigate to the entity’s income tax return, then click Workpapers > Tax Payments.
  2. Click "New" and select Inland Revenue or Tax Pooling as needed.
  3. Optionally edit the default tax year and account.

  4. Select the transaction type and enter the amount.
  5. Review and select preferences for how the transaction should impact the tax return, tax provision, and imputation credit account.
  6. Add a note explaining the transaction, then click "Save."


Intra-group transaction:

Transfer tax payments (or refunds) to another member (entity) of the group if applicable.

  1. Navigate to the entity’s income tax return, then click Workpapers > Tax Payments.
  2. Click "New" and select "Intra-Group."
  3. Optionally edit the default tax year.
  4. Select the entity for the transfer, transaction type, and enter the amount.
  5. Optionally select tax provision checkboxes as needed.
  6. Add a note explaining the transaction, then click "Save."


Refund transfer

Transfer income tax refunds to multiple accounts and taxpayers, following Inland Revenue guidelines.

For detailed instructions, refer to our article on Requesting income tax refund transfers.

Date types information

Understanding date types associated with transactions is crucial for accurate record-keeping:

Date

Explanation

Effective dateMatches the transaction date in myIR, indicating when the payment is treated as paid by Inland Revenue.
Processed date

The date Inland Revenue processed the transaction, influencing tax year determination.

Journal date

Determines the tax year for Tax Provision purposes and can be adjusted as needed.

ICA date

For imputation credit account purposes, adjustable to align with relevant periods.

Instalment date

Determines the provisional tax instalment the payment relates to, adjustable for alignment.


Tagging transactions

Each transaction can be tagged to indicate its treatment for tax return, tax provision, or imputation credit account purposes:

  • Tax paid – Applied as Tax Paid in the tax return
  • Pending – Is Pending
  • ICA – Impacts the Imputation credit account
  • Movement – Include in Tax Provision > Tax Account Movements
  • Proof – Include in Tax Provision > Current Tax Proof
  • UOMI – Impacts Use of money interest calculation

Only mark transactions as Tax Paid and ICA-impacting if they align with your intentions, and be sure to unmark any transactions that have been reversed or are absent from myIR. This meticulous approach will yield optimal outcomes for your entities.

Edit or delete a transaction

Easily manage transactions by clicking on them to open, then editing or deleting as necessary.

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