'Worst time for business owners' coming in three months
New Zealand business owners are being warned that January 15 is a critical cashflow crunch point due to the alignment of GST and income tax deadlines. Accountants suggest that the current tax system is misaligned with business revenue cycles, creating unnecessary financial pressure.
Why it matters
This highlights systemic issues in tax administration that can disproportionately affect small business liquidity and survival.
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New Zealand is three months out from the "worst time for any business owner", and businesspeople are being warned to be proactive to avoid the crunch.
A new survey of New Zealand accountants has found the provisional tax system is out of step with how businesses, earn, spend and manage cashflow.
John Cuthbertson - New Zealand tax and financial services leader at Chartered Accountants Australia New Zealand - said one survey respondent had said 15 January in particular was the worst time for a business owner.
This is the date that both GST and income tax payments are due, while revenue was often down because business had been slower over the Christmas period and many clients were just coming back from holiday.
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