Terms and Conditions for Tax Management NZ Client Services
Use of Tax Management New Zealand Ltd, (Tax Management NZ), Client Services indicates acceptance of all processes, terms and conditions as outlined herein.
Tax agents accessing Tax Management NZ Client Services on behalf of their clients agree that they will abide by the applicable terms and conditions. Provided Tax agents are acting in good faith they will not be liable for any default by their clients.
Tax Management NZ accepts no liability for any of the Client's tax obligations. Tax Management NZ Clients must seek their own tax advice at all times.
Payments for Tax PURCHASES are made to Guardian Trust Tax Pool account No 2 Acc No 03 0104 0984913 012.The New Zealand Guardian Trust is also the holder of the Guardian Trust /Tax Management NZ Tax Pool Account at the Inland Revenue Department and instructs the Inland Revenue to make transfers from this account for the tax purchased by Tax Management NZ Clients.
1. Monthly Processes and Cut-off Date
The Tax Management NZ monthly processing cycle will typically occur around the Provisional Tax Date. The cut-off date for each monthly cycle, by which date payments or requests for each service must be received, will be advertised on the Tax Management NZ website.
The cut-off date for the respective requirements will typically be:
- Tax PURCHASE request: 24th of each month (or working day proceeding),
- Tax PURCHASE cleared payment: 24th of each month (or working day proceeding).
2. Transaction Thresholds
There are no minimum request amounts for Tax PURCHASE. The minimum Tax FINANCE amount is $5,000.
3. Allocation Rules
Tax PURCHASE and Tax SALE requests will be prioritised according to the date each request is received.
Tax PURCHASE and Tax SALE requests will be matched where the Tax DEPOSIT Dates are within three months of each other.
Clients may elect at the time of their request to leave the Tax SALE or Tax PURCHASE request in for a further month should no match be found by the cut-off date for the monthly processing cycle.
4. Payment Terms
Payments to Tax Management NZ must be cleared funds in the Tax Management NZ account by the cut-off date. Tax Management NZ has received confirmation that all the major banks have a same-day cleared payment procedure. Upon registration, Tax Management NZ will work with the Client and the bank relationship manager to use the same-day payment procedure.
5. Interest Rates
The Tax Management NZ interest rate returns are subject to the availability of matching Tax SALE and Tax PURCHASE requests. Interest rates quoted apply from 1 April 2003 and are subject to change as advertised on the Tax Management NZ website.
6. Interest Calculation: Tax PURCHASE
Interest charged on a Tax PURCHASE will be calculated from the Tax DEPOSIT Date to typically 3 business days after the payment due date.
7. Tax Management NZ Responsibilities
Tax Management NZ has a responsibility to:
- Provide tax payment services with care and skill;
- Ensure that the software and Tax Management NZ processes are effective in the provision of services;
- Do its best to provide highly reliable services, although Tax Management NZ does not guarantee these will be continuous or fault-free; and
- Advertise cut-off dates and returns on the Tax Management NZ website.
8. Client Responsibilities
It is the Client's responsibility to:
- Follow the Tax Management NZ directions regarding the use of the Tax Management NZ services and the Tax Management NZ processes;
- Meet Tax Management NZ cut-off dates as advertised on the Tax Management NZ web-site;
- Ensure all information provided to Tax Management NZ is correct and complete;
- Ensure that Tax Management NZ services are only used for internal business use. Tax Management NZ services must not be used to operate another tax pool, and must not be resold, re-billed or otherwise provided to any other person without written consent from Tax Management NZ;
- Comply with all laws applicable to use and operation of Tax Management NZ services and processes;
9. Restriction of Liability
Tax Management NZ will make every endeavour to ensure the performance of obligations by the Inland Revenue and Guardian Trust. However, Tax Management NZ will not be liable for any costs or losses of whatever nature that are attributable to, whether fully or partially or directly or indirectly, the actions of the Inland Revenue or Guardian Trust including without limitation:
- consequential, special; incidental or exemplary losses;
- damages or expenses; or
- loss of profits or opportunities.
Tax Management NZ will not be liable for the consequences of any requests received after the monthly processing cut-off dates as advertised on the Tax Management NZ website, whether or not this is due to difficulties with the server provider or software.
Tax Management NZ will not be liable for losses due to the Inland Revenue disallowing a tax transfer where the Commissioner considers that the request for the transfer is made for the purpose or effect of tax avoidance. Tax Management NZ will also not be liable for losses or costs due to Inland Revenue making a tax transfer at an effective date later than the Tax DEPOSIT Date.
10. Confidentiality
Tax Management NZ reserves the right to use information required about a Client in its communication with the Inland Revenue, as required by the Income Tax Act 2007 and the Tax Administration Act 1994.
Tax Management NZ will not disclose details regarding the Client unless required to do so by law.
The Client must keep confidential any information it receives from Tax Management NZ which it would expect to be confidential or commercially sensitive. Any pricing or processes or legal relationships or software design information must be treated as confidential. A Client may only disclose confidential or commercially sensitive information if required to by law.
11. Software
Tax Management NZ remains the owner or licensee of any software used in the provision of business. Clients must not change or interfere with the software in any way, and must not copy any part of the software without written consent from Tax Management NZ.
12. Intellectual Property Rights
Tax Management NZ has intellectual property rights in the services, processes, relationships and software access provided to the Client. These rights include all copyright, trade mark and design rights relating to the provision of tax payment services. All these rights are retained when information or services or software access is provided to the Client.
Any intellectual property rights arising from any improvement or change to any service devised or made by anyone belongs to Tax Management NZ.
13. Services Acquired for Payment of Tax
The Client agrees that it is acquiring Tax Management NZ services for the purposes of payment of tax under the Income Tax Act 2007 and the Tax Administration Act 1994.
14. Services Acquired for Business Purposes
The Client agrees that it is acquiring Tax Management NZ services for the purposes of a business as defined in the Consumer Guarantees Act 1993 and that the provisions of the Act do not apply to any services we agree to provide under any written agreement with the Client.
15. Rights and Responsibilities That Continue
The end of any agreement between the Client and Tax Management NZ does not affect any rights and responsibilities which are intended to continue or come into force afterwards. These include all rights and responsibilities under this section.
16. Changes to Terms and Conditions
Tax Management NZ may change these terms. Tax Management NZ may do this by changing or removing existing terms or by adding new terms. Where this occurs, Tax Management NZ will inform the Client of the changes at least one month before they come into effect. Tax Management NZ will not ever change this requirement.
17. No Waiver
Except if Tax Management NZ has waived a right under these terms and notified the Client in writing, no delay or failure to exercise a right under these terms prevents Tax Management NZ from exercising that or any other right on that or any other occasion.
18. Invalidity
If any provision of these terms is unlawful and unenforceable, it will be severed from the terms to the extent it is unlawful and unenforceable. The rest of the terms will remain in force.
19. New Zealand Law Applies
All Tax Management NZ services are provided under New Zealand law. A Client may only take action against Tax Management NZ in a New Zealand court.
Defined Terms
Unless the context otherwise requires, the following terms have the meanings defined in this section:
Effective Date:
The date on which an amount as treated as producing a credit or debit in an account of the Client for the purpose of interest calculations.
Inland Revenue:
The Inland Revenue Department of New Zealand.
Match:
Tax Management NZ will seek to match Tax SALE and Tax PURCHASE requests, to provide a higher return on a Tax SALE
A match includes a partial match, whereby
- Only a portion of the Tax SALE or Tax PURCHASE request is satisfied; and/or
- The Effective Date of the match is from a date after the requested date.
Notification Date:
The date each month that Tax Management NZ will fix the purchase and sale interest rates and notify these on its website.
Provisional Tax Date:
This is usually the 28th of each month or the next business day if the 28th is not a business day.
Tax DEPOSIT:
A saleable entitlement to a provisional tax payment at the Tax DEPOSIT Date. A Tax DEPOSIT is not 'tax paid' until it is transferred to an individual account at the Inland Revenue using a tax allocation.
Tax DEPOSIT Date:
The date at which a payment is received into the Tax Management NZ Tax Account at the Inland Revenue. This will typically be on a Provisional Tax Date.
Tax DEPOSIT Face Value:
The amount of a payment received into the Tax Management NZ Tax Account at the Inland Revenue as a Tax DEPOSIT.
Tax PURCHASE Request:
A Tax PURCHASE Request by a Client is an offer to purchase Tax DEPOSITS from Tax Management NZ.
Tax Management NZ will notify the Client of the details of the Tax DEPOSITS that will fill, or partially fill the Tax PURCHASE order, and provide payment terms and amounts. Upon notification, the sale and purchase contract is considered complete.
Prices of Tax PURCHASES will be advertised on the Tax Management NZ website each month.
A Tax PURCHASE will be transferred to the Clients Inland Revenue Account.
Tax PURCHASE is subject to the availability of matching Tax SALE requests.
Tax allocation:
A tax allocation converts a Tax DEPOSIT to a provisional tax payment by transferring the entitlement to the Client's Inland Revenue account.
A tax allocation will transfer the underlying Tax DEPOSIT to the Inland Revenue at an Effective Date equal to the Tax DEPOSIT Date provided the transfer is actioned within 75 days of the taxpayers terminal tax date or if the transfer relates to an audit or voluntary disclosure, within 60 days of the audit or voluntary disclosure being accepted by IRD. A Tax DEPOSIT transfer that does not meet the conditions above will be transferred at the date that the Tax allocation is requested at Inland Revenue.
Tax Management NZ Tax Account:
The account at Inland Revenue in which Guardian Trust holds Tax DEPOSITS in trust for Tax Management NZ Clients.
UOMI: Use-of-money interest:
UOMI is the interest paid by the Inland Revenue on overpayments of provisional tax, or charged by the Inland Revenue on underpayments of provisional tax, as the case may be.
Disclosures
In accordance with the requirements to be registered by Inland Revenue as an intermediary, Tax Management NZ is required to provide notice that:
- Tax Management NZ has administration and information technology systems that:
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- Protect the privacy of the personal information and payment details acquired by Tax Management NZ in the operation of the Tax Management NZ Tax Account, and
- Record the amount remaining at any time in the Tax Management NZ Tax Account that has been contributed by each taxpayer from whom Tax Management NZ accepts payments.
- Tax Management NZ will maintain and operate those systems as required by the relevant Income Tax legislation.
Payment Disclosures
In accordance with section MBA 4(3) Tax Management NZ will advise Clients that the payment to the Tax Management NZ Tax Account does not satisfy any obligation of the taxpayer to make a payment to the Commissioner.
Principals
Each of the persons acting as an officer of Tax Management NZ and any principal of Tax Management NZ -
- is not a discharged or undischarged bankrupt; and
- has not been convicted of an offence involving dishonesty; and
- is eligible to be a company director.
Role of Commissioner of Inland Revenue
The Commissioner is not required to oversee or audit the operation of the Tax Management NZ Tax Account. Nor is the Commissioner liable for any loss that a person suffers because of the way in which Tax Management NZ operates the Tax Management NZ Tax Account.
Tax Avoidance
The Commissioner may refuse to accept a request for a transfer, or may reverse a transfer, if the Commissioner considers that the request for the transfer is made for the purpose or effect of tax avoidance.
