Random Impertinent Question

Random question from a reader

Whale

I was listening to Larry Williams on the ride home tonight from my day of wage slavery and heard the Shearer interview around 6pm.  In it he explained away this whole offshore UN slush account with another backstory about sitting down to do his income taxes with his Missus only to suddenly realise after three years of remembering and forgetting that he has not returned the account on his Pecuniary Register.

Question:

The obvious one is what is a bloke doing his taxes with his Missus for, but I haven’t even thought about my bloody taxes yet.  How can you do your taxes BEFORE the 31 March year end?  

Yes. I am wondering too.  It all seems too convenient, yet as with everything David Shearer, clumsy and a D for detail.

 


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  • Mr Sackunkrak

    That’s a very good question. Perhaps he was doing returns for the 2009, 2010, 2011 and 2012 tax years following his return of memory. If so, there will be some juicy penalties and interest to be paid.

    • Dave

      Why would he be doing his tax returns for 2009, 2010, 2011, and particularly 2012 so early, I was of the belief all union associates and leaders put them off for at least 7 years in line with their internal reporting guidelines.

  • island time

    If he has an accountant, he gets until end of this month to file last years return. Still does not explain the last couple of years though. Shearer is incompetence personified.

    • Mr Sackunkrak

      If he has an accountant he wouldn’t be ” sitting down to do them with the Missus”.

      • island time

        he still has to provide them with the details I would guess

  • Patrick

    Will Inland Revenue now pursue Shearer for the unpaid taxes plus additional penalties?
    This could be the pot of gold Dunne has been looking for.

    • BJ

      I wonder what his UN salary was for handing out rice and milk powder feeding the poor and starving – risking his life and limb.

      • Tom

        Probably lots and lots. The UN spend sweet fuck all on rice and milk powder compared to what they spend internally. Can’t remember what the figures were, but the waste is staggering

  • jonno1

    I dread year-end coming up, it takes me up to a week to sort out the tax returns for my companies, partnerships, trusts and personal, especially as some of the info arrives late. One good thing though, the third instalment of provisional tax is not due till May which gives me a chance to figure out what I’ve earned, till then I don’t have a clue. I generally load my first and second payments to avoid penalty interest which is a real pain for SMEs.
    A couple of days ago I defended Shearer by suggesting he may have been genuinely unaware of his earnings through a trustee etc, but he seems to have blown that defence himself.

    • tarkwin

      I just panic and send every thing I can find to the accountant.

      • jonno1

        Fair enough, but my experience with accountants is, well, sub-optimal to say the least. I have a degree in accountancy although I don’t practice in that area, so have convinced myself I can do it just as badly all by myself, and a week’s consulting fees foregone is probably still less than the total of the accountant’s fees.

    • Callum

      Look at ratio method for provisional tax, tied to your GST turnover (assuming you are registered) and reduces risk of penalties/interest for underpayments.

      • jonno1

        Good advice Callum, but as I transfer most of my company income to other (non-registered) entities by way of dividend or salary (ie the companies pay no provisional tax), that method doesn’t work for me. They pay heaps of GST though!

        • Callum

          Dividend should be from tax paid income, just be careful on how you do the salaries too as IRD is liking to challenge some of those at the moment. Seems you are on top of your options though.

          • jonno1

            True again Callum. But I had some unused dividend imputation credits losing value due to reducing company tax rates, so thought it was time to utilise them. After all, the tax had already been paid.

            No Penny & Hooper for me though – I’m one of those small players who is caught (in some years) with a single client exceeding 80% company revenue. I’ve tried putting up my rates to dissuade them*, but they keep coming back. Still, provided that income is substantial, who cares? I actually don’t mind paying a fair rate of tax and don’t attempt to push the boundaries. For some reason, the more tax I pay and the more my wife and I give away above that, the more I have left over. Go figure!

            *I call these my Lexus clients (the phrase was coined by a friend of mine in similar circumstances. Strictly speaking they’re my BMW clients).

  • AnonWgtn

    UN salaries are in US$ and are tax free – ask Helen Klark and her cohorts – allows Helen to purchase her seventh house in Auckland – easy

    • Steve (North Shore)

      Why would Helen do that? Her husband only needs one house?

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