All your tax updates on demand. Simple. What you need to know - - PowerPoint PPT Presentation

All your tax updates on demand. Simple.

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What you need to know

What services are unavailable?

Inland Revenue (IR) shutdown Thursday 12 ‐ Tuesday 17 April 2018

ir-File myIR IR call centres and offices

What MYOB services will this effect?

E-File IRD downloads (TAWS) eGST filing in MYOB Essentials and AccountRight

4

Agenda

1 2 3 4

AIM

Accounting Income Method (AIM) for provisional tax

UOMI

Use of Money Interest (UOMI) safe harbour extension and changes to the estimate method

FAQs from Support

Common tax issues and how to resolve them

Tax Manager updates

New features and changes

• ver the last year

5

Tax return changes

Including Residential Land Tax (RLT) calculation change

6

IR10 Workpaper

New IR10 workpaper in Client Accounting to import into the IR10 form

5

What products are we talking about?

MYOB AO Classic

• Return Preparation
• Tax Management
• E-Filing

MYOB AO

• Often referred to as

the ‘New AO’

• May include Tax

Manager

MYOB AE

• Tax Tracking
• Return Preparation
• E-Filing
• May include Tax

Manager

MYOB AE (hybrid)

• AE Practice Manager
• AO Classic Tax

Returns

• May include Tax

Manager

6

What products are we talking about?

MYOB Essentials

• AIM

AccountRight

• AIM

1

AIM

Accounting Income Method (AIM) for provisional tax

AIM

Things to note

• Once you start AIM, it’s for the whole year
• AIM will be available in both Essentials and AccountRight ledgers
• AIM is filed at the same frequency as GST returns, or every 2 months
• AIM payments are due with every AIM statement
• Penalties only apply if you don’t pay in full on time
• No tax pooling with AIM

AIM

Things to note

To be eligible to use AIM a taxpayer must:

• Have gross income below $5 million
• NOT be one of the following types of entities:
• trustees, beneficiaries of a trust, or partnerships;
• taxpayers who have investments in foreign investment funds
• r controlled foreign companies for the income year;
• Māori authorities;
• portfolio investment entities; or
• superannuation funds
• Not be in a transitional year

AIM

AIM Eligibility

Once on AIM, entities can be disqualified from the scheme if they:

• have been liable in 1 of the last 4 years before the current year for a

shortfall penalty in relation to their use of AIM;

• have consistently and systematically used AIM to inaccurately assess

its tax liabilities

• have failed more than twice in the current tax year to file their

Statement of Activity

Demo

AIM

AIM

What areas show AIM in Tax Manager?

• 1. New check box on clients tax tab
• 2. Alerts in Tax Manager
• 3. Option in the provisional tax calculator
• 4. AIM column in Find Tax Client view
• 5. Two new tax notices

New check box

• n clients Tax tab

Update your clients tax details for AIM

New check box

• n clients Tax tab

Update your clients tax details for AIM

New Alert in Tax Manager

Indicates AIM method selected on Client Tab

Option in the Provisional Tax Calculator

Aim method available from 2019 provisional tax year

Option in the Provisional Tax Calculator

Aim method displays on Tax Manager Summary view

AIM column in Find Tax Clients view

Two new tax notices

Notice will only show

• ther payments due

AIM What changes when filing a tax return?

AIM

• 1. No provisional tax calculation
• 2. Client tax statement – disclaimer

Provisional tax

• ption becomes

AIM

No provisional tax calculator

Taxation Statement in AO

Includes a disclaimer when using AIM that provisional tax will not show

Return Properties in AE

Taxation Statement in AE

Includes a disclaimer when using AIM that provisional tax will not show

2

UOMI

Use of Money Interest (UOMI) safe harbour extension and changes to the estimate method

UOMI Safe harbour and who it applies to

Changes

• 1. Safe harbour rules extended to cover all entities
• 2. Threshold increased from $50,000 to $60,000

Rates changed Overpayment Underpayment 2019 tax year available

8 May 2017 new rates added Now 1.02% from 1.62% Now 8.22% from 8.27% Access to the 2020 provisional tax calculator

UOMI

UOMI

Calculation date changes

Example:

• Non-individual client
• March balance date
• Standard method for provisional tax
• RIT of $10,000
• 1. For 2017 the UOMI will generally be calculated from 29 August 2016
• 2. For 2018 the UOMI will generally be calculated from 8 April 2019

Demo

UOMI– Part 1

UOMI

Months later…

Demo

UOMI– Part 2

UOMI

Changes in AO without Tax Manager

1. Document date THEN 2. Return date THEN 3. Today’s date

Classic without Tax Manager

The calculation uses the Document Date first

Classic without Tax Manager

Secondly the calculation looks at the return date

UOMI Finally the calculation uses “today’s date”

Classic without Tax Manager

Today

Differences in AE Tax

Calculation uses first day after P1 due or change from the list

Differences in AE Tax

“Save Results” must be selected to save changes to the tax return

3

FAQs from Support

Common tax issues and how to resolve them

What is a KB article and when should they be used?

Access from my.myob.co.nz

Avoid creating a duplicate client record in Classic

Create client in AO or AE using the wizard

Avoid creating a duplicate client record in Classic

Required fields have red triangles

Avoid creating a duplicate client record in Classic

Only complete the code and name

Avoid creating a duplicate client record in Classic

Create client record then edit

What do I do if a tax notice amount is not the expected amount to pay?

FAQs from Support

error

KB 37195

Article

FAQs from Support

Relationship details not updating in the Tax Return

To make sure the details are up to date: 1. Refresh the relationship in Return Preparation 2. Delete & re-create in AO or AE

KB 36297

Article

Demo

Updating relationships in Classic

Relationship issues in the Tax Return

Use the Associated tab in AO or AE

KB 34447

Article

Run setup on each computer after installing updates

AO KB 34729

Article

AE KB 32175

Article

Hybrid KB 38039

Article

Workstation install after downloads

Perform all the checks before you begin

AO KB 34729

Article

AE KB 32175

Article

Hybrid KB 38039

Article

Dear F1 THANK YOU!!!! For being such an amazing source of help and information. I know you’re always there for me whenever I need. Your best friend Phil Court CA

F1 Help Key

F1 Help Key

Find Tax Clients view

F1 Help Key

Help opened by F1 key from Find Tax Clients view

4

Tax Manager updates

New features and changes

• ver the last year

There is a NEW Alerts view in Tax Manager

Alerts, Alerts, Alerts

Tax Manager updates

Demo

Alerts view in Tax Manager

Security

New task permission added for Alerts view

Error fixed - "An error has occurred on the host service"

Alerts

Tax Manager updates

Demo

Voluntary adjustments

Presentation and transfer changes for:

Tax Manager view

• Tax summary view
• Add item error
• Tax Pool Fund Transfers

Tax Manager updates

Summary – Terminal Payments

Tax Manager view

Tax Summary – Terminal Payments

WFFTC and Student Loan sub-totals

Tax Manager reconciliation

Can now add one-sided entries

Tax Manager transactions

Tax Pool Transfers added as an option

Unreconciled view

IRD Assessments will show on unreconciled view when:

• The assessment has an amount AND
• There is a variance

Tax Manager updates

New IRD Status column

Available in Find Tax Clients view from the field chooser

When a tax return is not using E-File this will now display the IRD assessment date

Filed date in Find Tax Clients view

Tax Manager updates

Even more columns!

Tax Client column available from Find Clients view in AO and AE

Demo

Filing Statistics view

5

Tax return changes

Including Residential Land Tax (RLT) calculation change

Tax return changes

Residential land withholding tax credits (RLT)

• The 2017 specifications contained incorrect instructions for the

calculation and inclusion of RLT for:

• Income tax return: Estate of trust IR6
• Income tax return: Partnerships and Look-through

companies (LTCs) IR7

• The calculations have been corrected for 2018

Residential land withholding tax credits (RLT)

IR6 calculation 2018 IR6 calculation 2017

Residential land withholding tax credits (RLT)

IR7 calculation 2018 IR7 calculation 2017

Residential land withholding tax credits (RLT)

IR7 calculation change for 2018 total

Tax return changes

Foreign Dividend payments

Rules repealed from 1 April 2017

• FDP credits can no longer be claimed on the Income tax return
• The IR4J and the IR8J are both affected:
• The relevant fields have been disabled
• These now show 0.00

Tax return changes

WFFTC and Student Loans

Threshold changes

• WFFTC – Minimum Family Tax Credit threshold has increased from

$27,616 to $27,680

• Student Loan repayments threshold has increased from $19,084 to

$19,136

Rate has stayed $1.39 per $100 2017 $122,063 2018 $124,053 2019 $126,286 Increase to maximum liable earnings threshold

ACC Deductions

6

IR10 Workpaper

IR10 workpaper in Client Accounting to import into the IR10 form

IR10 Workpaper

What do I need to use the IR10 workpaper in Client Accounting?

• Tax Manager
• AO or AE
• Workpapers or Trial Balance View
• Return Preparation or Tax Return Services
• MYOB Ledger, AO Classic GL, MAS, MYOB Essentials or

AccountRight

How do I begin?

Start by posting all journals to the ledger

Demo

IR10 Workpaper in Client Accounting

AE Tax

The preparation drop down menu has access to import the IR10 from the Workpaper.

IR10 Workpaper

Helpful prompts

Warnings and error messages to watch out for

• Workpaper does not exists for this client in 2018
• Tax integration workpaper is not found for this client
• WARNING – IR10 schedule already exists. IR10 data will be
• verwritten
• IR10 import from MYOB Workpapers completed

How does the software pre-populate the IR10 workpaper using the ledger balances?

It’s mapped from the NEW Tax Account Groups