Any business wanting to use AIM to pay their provisional tax will need to be using one of the Inland Revenue approved accounting software providers: MYOB, Xero or APS Reckon. The software will use the relevant accounting information from the payment period to calculate the amount of tax to pay in accordance with AIM.
Once this amount has been calculated, the tax payment needs to be made directly to IRD. With MYOB, businesses can file the payment themselves or have an accountant file it on their behalf. With Xero and Reckon APS an accountant will need to file the payment.
At the end of the tax year, all businesses will still need to prepare and file an income tax return to determine its income tax liability for the year and ensure that the correct amount of income tax is ultimately paid to the IRD.
Businesses should note that if a payment is missed, the existing interest and penalty rules will apply to the underpaid amount.
An election to use AIM can be made by sending the IRD a copy of the Statement of Activity (through approved accounting software), before the first provisional tax due date.