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Terminal tax notices

Terminal tax basis

If you haven't filed the tax return, you can enter the taxable income, tax credits and any penalties or interest owing. Then, we'll automatically calculate the Tax on taxable income and Total 20xx income tax owing for you. Other debits (individual entity types only) is where you enter data about portfolio investment entity (PIE) debit and non-resident withholding tax debit.

The fields Taxable income, Tax on taxable income, Tax credits, Other debits, Penalties and Interest and their values

If you've filed the tax return, you won't be able to edit the terminal tax basis. You'll see the fields in an uneditable state. But we'll prepare your client's terminal tax notice using the data from the filed tax return. We'll also calculate any interest and penalties owing.

Any payments and transfers made during the period prepopulate from the Data reconciliation page, to calculate the final Terminal tax amount.

Use of money interest (UOMI)

You have a number of UOMI calculation methods available:

  • Base the calculation on IR's assessment.

  • Use the UOMI amount from the tax return.

  • Calculate the amount using a start and end date.

  • Override the calculated amount with your own manual amount.

  • Choose not to include UOMI.

The default method that the tax notice uses depends on the status of the tax return, but you can choose a different method.

You'll see your choice reflected in the amounts in the Terminal tax basis and Payable amount sections of the Tax notices page.

The UOMI calculation applies to all tax years. If you need to change terminal tax notices before the 2022 tax year, which have passed their due date, check and correct the calculation if necessary.

You can also learn more about UOMI in tax returns.

Payable amount

The payable amount shows how the terminal tax amount is calculated.

Payable amount section showing the Income tax, Student loan and Working for families sections and their fields

You'll only see the SLS section and the INC prefix on fields when viewing tax notices for individual entities.

Tax pooling

Voluntary adjustment

You have up to 5 voluntary adjustments for individual entities, and up to 3 for all other entity types.

If you want your client to pay less tax than the terminal tax amount, you can make a negative voluntary adjustment by selecting the tax type INC or FAM. This is useful for scenarios where there’s an amount owing to IR.

Tax notice summary

The amounts under Tax notice summary are only displayed when the balance is positive, meaning there's a payable amount owing to IR.