TAX PENALTIES AND LATE PAYMENTS

Penalties on underpaid tax now range from 20% for lack of reasonable care (e.g. with business records) to 150% for tax evasion.
Criminal prosecution can occur for knowingly or unknowingly failing to: keep records, provide information, pay tax deductions, etc. These range up to a fine of $50,000 and/or 5 years’ imprisonment.
Late payment penalties have tightened to 1% of unpaid tax (for 1st 7 days) plus 4% for that month plus a further 1% per month compounded (some exceptions apply).

USE OF MONEY INTEREST (UOMI)

UOMI is charged on underpaid tax at 7% and paid on overpaid tax at 0% (from 29/8/19 to 7/5/20 was 8.35% and 0.81%) source IRD website – rates subject to change without notice.

Please plan to meet all tax payments so as to avoid IRD extra charges. You must take responsibility for all payments, charges and interest due and these can be considerable. We undertake work on the basis that these are your responsibility and that we will not be held liable.

INVOICES AND INVOICE DISPUTES

We may at our discretion render interim invoices during the course of the work being performed. If you consider any invoice of Lindsay & Associates contains an error or if you wish to raise any dispute in relation to the charges, you must notify us in writing (using only a method of delivery that provides confirmation of receipt by us) within two months of the date of the relevant invoice. If you do not notify us in writing of any such dispute within 2 months of the date of invoice (time being of the essence), that invoice will be deemed to have been accepted by you as being correct and payable.

CONFIRMATION OF ENGAGEMENT

As the client/authorised signatory for the client(s), I confirm that:

1. You are requested and authorised to provide accounting services for the client(s) named below and in relation to the year specified above;
2. the terms of the Engagement Letter and any subsequent amendments issued by you up to the date of this checklist are confirmed and are agreed to apply in relation to the accounting services you provide in relation to the year specified above;
3. All financial information, business records and other information provided to you is to the best of my knowledge, information and belief true and correct.
4. where I am not the client, I am duly authorised by the client(s) named below to give the confirmations above and to enter into this engagement for accounting services; and
5. In consideration of you undertaking the accounting work on credit for the client(s), I:
(a) unconditionally and irrevocably guarantee to you the due and punctual payment of all accounting fees and disbursements payable now or hereafter by the person(s) named below as the client;
(b) agree that my liability under this guarantee and indemnity will constitute a principal obligation and such liability will not be relieved or in any way affected in a manner prejudicial to you by any granting of time, waiver or forbearance to sue by you or by any other act, omission, matter, circumstance or law whereby a guarantor as a surety only would, but for this provision, have been released from liability; and
(c) agree that this guarantee and indemnity will be a continuing guarantee and indemnity and will remain in full force and effect until all payments now or at any time hereafter payable by the client (or any of them) to you have been paid in full, including payments which are subsequently avoided or affected in any way, whether under any statutory provision or otherwise, so as to deprive you of the full benefit of such payment.