The accounting income method (AIM) makes managing provisional tax easier for businesses with a turnover of less than $5 million.
It uses AIM-capable accounting software to easily and accurately work out your payments.
This puts payments more in line with the profit you make.
What sets AIM apart from other provisional tax payment methods is that you only pay when you make a profit.
To use AIM you must have an annual income of less than $5 million.
Some types of taxpayers cannot use AIM:
Pay as you go: The amount of tax you pay is in line with the profit you make.
Better accuracy: You'll pay provisional tax based on real profit made, not estimated.
Avoid penalties and interest: No 'use of money interest' charges as long as you pay tax in full and on time.
Refunds: If you make a loss or overpay, you'll be able to get a refund straight away.
We recommend that you talk it over with your tax professional when switching to AIM.
You can start using AIM any time during the year.
AIM-capable accounting software is available from these providers:
Getting set up
There are two possibilities for filing and paying provisional tax:
Statement of activity
AIM software works out your income and expense information and sends it to us in a statement of activity.
If you make an income loss during the year, you might end up paying too much provisional tax. AIM lets you get a full or partial refund, hold it, or transfer it to another tax type or account. It's the only provisional tax method that allows this.