IRD releases independent tax pooling report

IRD releases independent tax pooling report

IRD releases independent tax pooling report TMNZ Blog
Photo: Chris Cunniffe

Chris Cunniffe.

Last year Inland Revenue (IRD) commissioned an independent report from PwC on the tax pooling industry.

In the 12 years that tax pooling has been operating it has become a very significant part of the tax system, so IRD senior management asked for the report to understand any risks in respect of the industry, and as a pre-cursor to considering any further changes to the pooling regime.

This week IRD released the executive summary of the report, a copy of which can be viewed here.

The report is positive about tax pooling, while making some suggestions for how IRD may want to enhance the regime in the future. PwC notes that pooling appears to be operating efficiently and that it is valued by taxpayers.

PwC has set out a number of recommendations for IRD to consider, which I consider to be well made. A more comprehensive summary of PwC’s recommendations, and Tax Management New Zealand’s observations in respect of each recommendation, is available here.

The tax pooling intermediaries are meeting with IRD next Thursday, when we will discuss the PwC report. TMNZ looks forward to implementing the recommended changes, which will create a more sustainable and stable platform for tax pooling for the next decade.

If you have any questions or concerns about the report that you would like to discuss with me, please do not hesitate to call on 09 520 8922.

Best wishes,

Chris Cunniffe
Chief Executive Officer
Tax Management NZ