Manage client IRD interest exposure smarter

Manage client IRD interest exposure smarter

Manage client IRD interest exposure smarter Lee Stace

Best practice key on keyboardWith the 28 November and 15 January provisional tax dates approaching, now is the perfect time to talk to your larger clients about the benefits of TMNZ corporate membership.

Clients who experience volatility or pay substantial amounts of provisional tax (more than $100,000 at each date) can reduce their exposure to use of money interest by paying their provisional tax into the Guardian Trust/TMNZ tax pool account at Inland Revenue (IRD) rather than directly into their IRD account.

This gives clients greater control, flexibility and security over their provisional tax payments because:

• They can earn more interest on surplus tax than they would if they overpaid IRD.

• Tax can be purchased if they have underpaid income tax.

• Tax can be swapped across provisional tax dates reduce exposure to use of money interest.

• Overpaid tax can be refunded within three to five days – and without filing a return.

• They can access TMNZ’s in-house expertise for tax pooling advice on how to optimise their provisional tax payments.

• Your money is deposited in the TMNZ tax pooling account at IRD.

Feel free to contact Chief Customer Officer Liz Taylor or Client Services Manager Martin Bing on 0800 829 888 should you or your clients want any additional information about becoming a TMNZ corporate member.