Individual income tax return guide 2011 - Inland Revenue Department

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IR 3 INDIVIDUAL RETURN GUIDE
Attribution rules
The attribution rule may apply where an individual provides services to
an associated person (company, trust, partnership).
In particular, it can apply where the associated person sells those services
on, principally to a third party.
To find out how to apply this rule, please read Tax Information Bulletin (TIB)
Vol 12, No 12 (December 2000) and Vol 13, No 11 (November 2001).
Prepare a summary of details
You can use any of the following:
––
your financial records
––
the Farming income (IR 3F) form for agricultural businesses
––
the Business income (IR 3B) form for other businesses
––
the Accounts information (IR 10) form.
Staple one of the above forms to page 3 of your return and print your
profit (net income) in Box 22.
The IR 10 is a statistics form that sets out a general summary of
information from the financial accounts. Using an IR 10 speeds up the
processing of your return. If you complete an IR 10 you don’t need to
send your financial accounts as well. However, you still need to complete
them and keep them in case we ask for them later.
Keep your receipts with your records in case we ask to see them too.
Providing childcare services in a home
Based on the Education (Home-Based Care) Order 1992 and/or the
Licensing Criteria for Home-Based Education and Care Services 2008,
Inland Revenue’s Determination DET 09/02: Standard-Cost Household
Service for Childcare Providers, sets out the types of expenditure generally
incurred (standard cost) by individuals providing childcare services in
their home.
But, if you’re a childcare provider who’s registered for GST, this
determination doesn’t apply to you.
Individuals providing childcare services in their homes may use the
standard costs (set out in the determination) or their actual costs
and income for calculating their tax. If your childcare activities began
part-way through the year, calculate your tax from that date using either
the standard costs or actual costs.
See our Tax Information Bulletin (TIB) Vol 17, No 4 (May 2005) for details.