Tax Management NZ

[How can I find out more information about TMNZ?]

TMNZ can arrange a seminar or presentation on request. Contact us for further information.

[Is TMNZ approved by Inland Revenue?]

Yes. TMNZ is listed on the Inland Revenue's website and we were the first tax pooling intermediary to be approved by them. The TMNZ Tax Account was established in April 2003 and is operated under the Income Tax Act 2007.

[Why should I become a corporate member?]

Corporate membership entitles a taxpayer to the following benefits:

• Peace of mind through managed use-of-money interest risk
• Greater flexibility in provisional tax management
• The ability to defer provisional tax payments
• The potential for interest savings on tax underpayments
• The potential for higher returns on overpaid tax
• Earlier refunds – enabling flexible cash flow management
• Easy tax transfer to associated companies
• The ability to hedge against the use-of-money interest risk of a future audit
• Implement payment procedures through management of the Inland Revenue interface
• Easy reconciliation through easy-to-read statements
• On-line access to account balances
• On-line access to make transaction requests

Please contact us to find out more

[How do I know my payments will be secure?]

Custodial trustee services for the TMNZ Tax Pool are provided by The New Zealand Guardian Trust Company Limited (Guardian Trust). With origins dating back to 1882, Guardian Trust is a leading trustee, financial adviser and asset manager.

Guardian Trust

• Holds all payments and Tax DEPOSITS on trust for members;
• Maintains core client details and tax registers;
• Holds all deposit bank accounts;
• Holds the TMNZ Tax Account at Inland Revenue;
• Authorises all payments; and
• Authorises all transfers to taxpayer accounts at Inland Revenue

[How long has TMNZ been in business?]

TMNZ has been providing tax pooling services to New Zealanders since April 2003.

[When do imputation credits arise for Tax PURCHASES?]

Imputation credits for Tax PURCHASES arise at the effective date of the purchase. For example: Purchase $50,000 for 7 July 2005 tax and an ICA credit of $50,000 arises on 7 July 2005.

[What is the earliest tax available to purchase?]

1 April 2003 is the earliest date that a Tax DEPOSIT can be purchased – this is when the tax pooling legislation came into effect. The earliest deposits currently available are 7 June 2006. Please contact us if you require tax prior to this date as some small amounts are available.

[Does TMNZ have tax for sale when I want it?]

TMNZ is very likely to be able to meet your Tax PURCHASE request. Check our online calculator for dates and savings.

[How long does it take for TMNZ to confirm a Tax PURCHASE or Tax FINANCE request?]

TMNZ is able to respond to most requests within 30 minutes.

[Can a Tax PURCHASE eliminate a late payment penalty?]

Yes, in most cases. If it is not yet 60 days after the terminal tax date for the year you need tax, we can eliminate all late payment penalties. If we are more than 60 days after the terminal tax date for the year in question, we can only eliminate late payment penalties first charged from the terminal tax date.

If we are more than 60 days after the terminal tax date for the year in question and there are late payment penalties charged from the provisional payment dates, you will not be able to purchase credits through tax pooling.

For further information refer to section RP19(3) Income Tax Act 2007 or call TMNZ to discuss.

[Can Tax DEPOSITS be purchased after several years?]

Yes – provided that you meet the late payment penalty criteria above.

[Can a Tax PURCHASE be used for GST and other taxes such as PAYE?]

It is expected that Tax PURCHASE will be available for other tax types from June 2009 when the current tax bill is passed.

[Can a Tax PURCHASE be used to reduce UOMI on a pre-2003 terminal tax liability?]

Yes – by making a 1 April 2003 tax purchase, UOMI can be reduced from that date.

[Does a corporate client have to be registered with TMNZ to make a Tax PURCHASE?]

Yes.

[How much does a Tax FINANCE cost?]

Charges vary typically between 6.0% and 9.0% per annum. The minimum Tax FINANCE amount is $5,000 and the costs decrease as the option amount increases. Click here to obtain a quote.

[Are there any establishment fees or other charges?]

No – not for Tax PURCHASES and Tax FINANCE. Corporate members do pay an annual fee, however this is refundable to the extent that TMNZ does not achieve savings in excess of this amount for the member over a 12 month period.

[How long before a Tax PURCHASE is transferred to my account at Inland Revenue?]

Transfers are usually completed by Inland Revenue within three weeks of the payment due date. You will receive notification from us confirming when this has been completed.