A focus on topical tax issues - August 2017
Is there any benefit to tax pooling under the new provisional tax rules?
You will probably be aware of the changes made to the provisional tax rules with effect from the 2018 income year (refer to our March Tax Alert).
We have all either heard about, or been in the position of, someone who has been stung by use of money interest (UOMI) due to an unexpected increase in profits or a foreign currency swing.
In summary, the changes mean that from the 2018 income year, UOMI will only apply from the date of the third instalment for taxpayers who use the standard uplift method of calculating provisional tax for all instalments before the final instalment.