Advice On Inland Revenue Chasing Unpaid Provisional Tax

This blog post is for clients with a March balance date. Please don't panic if the Inland Revenue calls, chasing unpaid provisional taxes. Read on...

Inland Revenue are now randomly contacting clients who may have missed paying their first instalment of 2016 provisional tax due on 28 August 2015.  This does not take into account any of the following reasons why a payment is not made:

  • You may have made your payment into the wrong financial year, e.g. 2015 instead of 2016
  • A transfer from another associated taxpayer is covering this provisional tax payment but the transfer has not happened yet.
  • You are not required to pay any 2016 provisional tax but have not filed your 2015 return yet
  • You are using a Tax Pooling Intermediary

Unfortunately Inland Revenue use an automated system when chasing unpaid debt, and they have confirmed they will continue with a greater use of automation, technology and more electronic contact with customers.  However they do agree there will inevitably be instances where there will be a mis-match with processing.

Please continue to contact the team here at WK when you get any contact directly from Inland Revenue that you are not sure about, we can generally sort the matter very quickly.