Tax Management NZ

Tax Pooling is a service introduced by Inland Revenue in 2003 that allows provisional tax payers to reduce their exposure to use of money interest costs. This is the penalty interest IRD charges you if you don’t pay the right amount of tax on time.

We established tax pooling in NZ and created all the tools currently used in the market

As the name suggests tax payers place their provisional tax payments in a pool account held at IRD. Amounts in this pool are held on trust by an independent trustee, in our case Guardian Trust. The company that operates the tax pool is called a Tax Pool Intermediary. This is what Tax Management New Zealand does. All tax pools also need to be IRD approved. Tax Management New Zealand was the original tax pool intermediary approved by Inland Revenue. We have the biggest customer base and have developed all of the market tools currently employed by intermediaries to assist tax payers.

[How it works]

When it comes time to file the tax return, tax payers who have made payments into the tax pool transfer what they need for themselves from their tax pool deposits and any surplus amounts are then able to be traded with other tax payers for improved interest returns.

Other tax payers acquire those credits because buying someone else’s surplus provisional tax extinguishes their liability to IRD and does this at a lower cost than the IRD’s headline interest rates.

[More innovative solutions]

Another way the tax pool can assist with meeting provisional tax payments is by lending you money to cover your tax payments. This is called Tax FINANCE – a service we established in 2003. Tax payers pay an upfront interest cost and then have up to 12 months to pay off their provisional tax. There is no other security required and rates are very competitive (similar to housing rates). Check out our calculator on the side of this page to see just how competitive they are.

Tax FINANCE is amongst the cheapest funding you can get.

Many companies and individuals take advantage of this service so they can keep more cash in their business where it is actually making them money. If you look at the various funding lines used in your business you will quickly see that Tax FINANCE is amongst the cheapest funding you can get which is why we see most of our clients continuing to use the service once on board as the value speaks for itself.

In summary tax payers who have deposited more provisional tax than they need get more interest back, those who haven’t or can’t pay their tax on time can reduce their interest costs and IRD benefits from compliant tax payers not being unduly penalized by the tax system. In short everyone comes out better off.

[The Provisional Tax Masters]

The Inland Revenue set up tax pooling to act like the lion tamer while the headline use of money interest rates are the beast. When you’re in the cage with the lion though you want to be sure the lion tamer in there with you knows what they are doing. You need to know they have done this before and lived to tell the tale; you want a professional with an established track record.

Our clients benefit from the largest pool of buyers and sellers.

Tax Management New Zealand is preeminent amongst tax pools in this regard. We established tax pooling in New Zealand and created all the tools currently used by other market participants. We lead, others follow. And our clients continue to benefit from the largest pool of buyers and sellers, instant order confirmations, competitive rates and a money back guarantee.