How to manage cashflow over Christmas
Everyone loves the middle of summer and spending time with family and friends over Christmas, but it can be a challenging time of year for many small and medium-sized Kiwi businesses.
According to a poll conducted by the Employers and Manufacturers’ Association, more than half of businesses experience cashflow constraints between January and March.
It’s hardly surprising. The period after Christmas is traditionally slow for many companies, with people away enjoying their holidays. Consumers also tend to reduce spending after the expensive Christmas and New Year period.
Businesses can come under pressure for a number of reasons. Earnings will be down if companies shut over the break, while others will feel the pinch if they have paid bonuses before the end of the year.
Considering these facts, it’s understandable that many businesses struggle to manage cashflow and make provisional tax payments on 15 January every year.
Unfortunately, the Inland Revenue doesn’t factor in these seasonal challenges. It expects payments to be made on time and charges taxpayers late payment penalties of up to 20 percent per annum and use of money interest (UOMI) if tax is not received on the due date.
Your options for managing cashflow
What are the best options for businesses that want to manage cashflow and free-up money over the summer?
Tax pooling is IRD-approved and can be used to defer provisional tax payments to a time that suits the taxpayer without incurring late payment penalties and UOMI.
This method is cheaper than using many traditional forms of finance. Rates at Tax Management NZ (TMNZ) start from below eight percent, and tax pooling doesn’t affect existing lines of credit. Also, no credit checks or security are required.
The full amount of finance doesn’t need to be paid back if less tax is owed than first thought. The finance arrangement can be easily extended as well.
How tax pooling can help
Say you want to defer a $5,000 provisional tax payment for six months. You would pay TMNZ a one-off, tax-deductible interest amount and TMNZ would arrange the $5,000 provisional tax payment on your behalf.
The interest amount is based on the amount of tax financed and the period of maturity, so in this instance, it would be roughly $205.
The provisional tax payment is held in an IRD account administered by the Guardian Trust. Guardian Trust instructs the IRD to transfer the tax into your IRD account when you repay the $5,000 principal in six months’ time.
The IRD treats the $5,000 provisional tax as being paid on time once the transfer is processed. It’s that simple.
Ready to ease your seasonal cashflow worries? Get in touch with our team to discuss tax pooling options today.
Find our latest resources on tax pooling and calculating tax using the Standard Uplift method here: https://www.tmnz.co.nz/calculating-provisional-tax/
How you can use tax pooling like a savings account
In business, cash is king, and being able to access funds quickly in a crisis can mark the difference between success and failure. In an unpredictable and volatile world, having the ability to access cash during challenging times can be priceless.
Just ask the taxpayers who were able to access provisional tax payments they had deposited in the TMNZ tax pool when COVID-19 brought the world to a standstill.
With tax pooling, companies can easily request refunds of provisional tax payments they have made at the year to date without waiting to file their tax returns. They can receive their refunds within a matter of days.
Tax can be one of the largest expenditure lines for a business, so flexibility is vital.
In this economic climate, it’s far from ideal to have large sums tied up with the IRD.
What if you can’t access the money in an emergency?
What if your profitability projections trend down over the year, meaning you’re likely to overpay?
For taxpayers with a 30 June year-end, the first instalment of provisional tax is due on 28 November. Every business and sole trader should ask themselves the questions above, especially if their work is seasonal or cyclical in nature.
Businesses should also think about the accessibility of their funds if their income is difficult to predict or fluctuates due to factors such as commodity prices, adverse weather events, or the exchange rate.
Accessible tax money
Depositing tax payments into a tax pool can form part of an effective risk management strategy in times of uncertainty.
Look at it like depositing into a savings account with the added benefit of eliminating late payment penalties and IRD interest. You can still access your funds if you need to, you’re covering yourself for tax time and possibly extending your time to pay.
How depositing provisional tax into a tax pool works
Tax pooling operates with the blessing of the New Zealand tax department. TMNZ has been a registered provider of the service since 2003.
Companies deposit their provisional tax payments into a shared pool instead of directly into their own IRD account.
Each payment is date stamped as at the date it is made into the pool (e.g., 28 November). Funds are held in an account at the IRD. This account is managed by an independent trustee, Guardian Trust.
A taxpayer holds their payments in the pool until it instructs TMNZ to transfer their deposits to their own IRD account.
Taxpayers can request a refund from TMNZ of provisional tax deposits held in the pool at any time without having to file their tax return or an estimate with IRD.
Refunds may be subject to meeting anti-money laundering requirements. (Corporate taxpayers also need to be mindful of imputation credit account impacts when requesting a refund of tax they hold in the pool).
A taxpayer typically instructs TMNZ to transfer their tax deposits to their own IRD account once they finalise their tax return and know the amounts required at each instalment date to satisfy their liability for the year.
As the tax being transferred from the TMNZ tax pool to a taxpayer’s IRD account has been date stamped to when it was originally paid into the pool, IRD recognises it as if the taxpayer paid the whole amount on time.
This remits any IRD interest and late payment penalties showing on the taxpayer’s account.
Access previously paid funds
If you’re short on cash, tax pooling also allows you to temporarily withdraw deposits you hold in our pool.
You can access the amount of provisional tax funds you have deposited (minus an upfront interest cost). You also have the option to restore your deposit at the original deposit date once your cashflow situation has improved.
Buy some time
When preserving cashflow is high on the agenda, you can use a tax pool to defer upcoming provisional tax payments to a date in the future without incurring late payment penalties.
For example, someone with a 7 April terminal tax date could have up to 75 days from that date to settle their provisional tax.
Earn more interest if you’ve overpaid
If you have surplus tax remaining in the pool once you have transferred money to the IRD to satisfy your liability, you can earn interest above the IRD’s credit interest rate by selling the excess tax to other pool members that have underpaid for the year or have received a notice of reassessment from the IRD.
Please note that this is subject to market demand.
The purchasing taxpayer can reduce the interest cost faced on their underpayment significantly when applying this tax against their liability. This also eliminates any late payment penalties.
Overpayers earn more interest while fellow taxpayers pay less. Everyone’s a winner!
Find out more
To learn more about managing your provisional tax, check out our tax finance guide and cashflow management tips for businesses.
Alternatively, please get in touch with our friendly support team if you have any questions. We’re always happy to help.
Manage IRD exposure with corporate tax pooling
With the 28 November and 15 January provisional tax dates fast approaching, now’s the perfect time to talk to larger clients about the benefits of TMNZ corporate tax pooling.
Tax pooling is an Inland Revenue-approved system to help New Zealand businesses manage their provisional tax. Instead of paying the IRD directly, taxpayers can purchase overpaid tax from other tax pool members and pay into the tax pool when it suits them.
As some businesses overpay tax when they have funds to spare, they help to cover other taxpayers that need a bit more time to meet their obligations. We like to think of it as businesses helping businesses.
TMNZ is proud to be New Zealand’s original tax pool, pioneering the concept in 2003. We haven’t looked back since, helping large businesses, SMEs, and sole traders with tax management.
With tax pooling, businesses that can’t meet their provisional tax liabilities can purchase tax from those that have overpaid. This is charged at a lower interest rate than the IRD’s use of money interest charges, and companies also avoid late payment penalties.
There are advantages on both sides of a tax pool. Companies that have overpaid into our pool can also earn more interest on their surplus tax than if they had paid the IRD directly.
Clients that experience volatility or pay substantial amounts of provisional tax (eg: more than $100,000 at each date) can reduce their exposure to use of money interest by paying provisional tax into the Guardian Trust/TMNZ tax pool account at Inland Revenue (IRD) rather than directly into their IRD account.
In summary, here are all of the ways corporate tax pooling is great for large companies:
- Companies earn more interest on surplus tax than they would if they overpaid the IRD.
- Tax can be purchased if businesses have underpaid income tax.
- Tax can be swapped across provisional tax dates to reduce exposure to use of money interest.
- Overpaid tax can be refunded within three to five days — without filing a return.
- Businesses can access TMNZ’s in-house expertise for corporate tax pooling advice on how to optimise their provisional tax payments.
- Money is deposited in the TMNZ tax pooling account at IRD.
What’s more, by using the TMNZ tax pool, you and your clients are also helping to give back to New Zealand. All our profit is invested in the Whakatupu Aotearoa Foundation, supporting social and environmental causes.
Contact us today to find out how TMNZ tax pooling can help your clients.
TMNZ celebrates 20 years of investing in innovation
TMNZ turns 20 in April, celebrating two decades of innovation as the world’s first ever tax pool. Ingenuity and creative thinking have always been part of our DNA.
TMNZ started out as an idea. Our founder Ian Kuperus, who worked for Inland Revenue and in the banking industry, recognised way back in the 1980s that businesses and the tax department were struggling with managing provisional tax payments.
The problem was felt on both sides. Businesses didn’t know how much tax they needed to pay and nearly always ended up with a Use of Money Interest exposure which most businesses viewed as a “Use of Money Penalty”. Inland Revenue, on the other hand, had the dilemma of charging one interest rate to all taxpayers, which meant that large businesses were paying up to 14% interest when their normal borrowing cost was 7%. The situation was messy.
Ian came up with a clever solution — which would allow businesses to trade their over and underpayments and thereby reduce their interest costs.
After unsuccessfully pitching the concept to Trevor de Cleene. Minister of Revenue at the time, the idea went quiet for several years. Then, in 2001, IR issued a discussion document – “More Time for Business” that included a number of ideas to improve the provisional tax system. One of its suggestions? A tax pool.
A world first
If at first you don’t succeed, try, try again. Following IR’s review, Ian explored numerous business concepts – involving joint ventures with accounting firms, banks and other financial organisations. Eventually, he went out on his own, and in 2003, TMNZ was born.
Ian says his time working for IR, The National Bank, The Dairy Board and Fonterra gave him a unique perspective on New Zealand’s tax problems, and says he was motivated to make life easier for Kiwi businesses.
“I’m a passionate believer in the value of business creating employment and livelihood for individuals, their families, and communities,” he says. “I’ve always had a desire to improve things.”
He’s proud to have played a role in New Zealand’s rich history of innovation as an integral figure in the evolution of our tax system. For this reason, Ian was recognised as EY Entrepreneur of The Year category winner in 2013, for business and social entrepreneurship.
“To be involved in something that has improved the functioning of the tax system has been very rewarding. It’s great to be part of that era of reform that started in the 80s.”
Ian has always had a strong sense of purpose and community. So, it was no surprise that his business would give back to Aotearoa.
Being the change
One of TMNZ’s values is ‘be the change’, and this has been reflected in our philanthropic endeavours over the years.
“Since the beginning, we’ve always had an element of giving back and contributing,” Ian explains. “That’s always been part of our mission, but a couple of years ago we decided to go a step further and commit all of our profits to a Foundation.”
In 2019, Ian and his wife, Wendy, established Whakatupu Aotearoa Foundation to continue their legacy. TMNZ’s profits are now entirely dedicated to Whakatupu Aotearoa Foundation’s charitable and philanthropic mission, and our goals and objectives are now closely aligned with the causes we care about.
The Foundation invests bravely. It tests ideas that have the potential to create system change and improve our environment and communities. This is ‘venture philanthropy’.
The Foundation backs smart new ideas and works alongside talented project leads, helping them develop so they can bring others on board. The Foundation aims to tackle climate change and support marginalised and disadvantaged communities.
“These are two areas where there are significant needs,” Ian says. “There’s a great opportunity to make a difference, particularly with climate change, where we are running against the clock.”
The Auckland Climate Festival grew out of early funding from the Foundation and is now preparing for its third year. Mindful Fashion New Zealand is uniting businesses from the industry to reduce waste and operate more regeneratively, thanks to seed funding from the Foundation.
Helping other Kiwi innovators
Innovation plays an important role in tackling today’s major challenges in New Zealand, whether that’s climate change, natural disasters, health and wellbeing or economic prosperity.
“We’re proud to be helping to provide a cashflow boost to Kiwi innovators, so they can continue their important work,” says Ian.
TMNZ is administering Research and Development Tax Incentive (RDTI) in-year payments on behalf of the Government, providing businesses with regular cash payments towards R&D costs.
Launched in March, this world-first payments system enables businesses to receive 15% credit on eligible research and development expenditure as regular payments, rather than having to wait until after the end of the tax year.
Early-stage startups and other pre-profit research and development businesses are set to benefit the most from this interest-free loan solution, which provides cashflow boosts throughout the year.
This new R&D tax approach has landed exactly 20 years after TMNZ launched its global-first tax payment solution.
An innovative future
Looking back over the past two decades, Ian has learnt some valuable lessons about bringing business ideas to life.
So, what makes a successful innovator?
“It’s a combination of things,” Ian explains. “Being in a position where you’re prepared to take some risks, and having a vision of a better world or better business environment. Also, being prepared to engage with others and to allow your thinking to evolve.”
We’d like to thank all of our clients, partners, and employees who have supported us since 2003. As we look forward to the next 20 years, we’ll continue our commitment to investing in innovation.
Ian remains focused on inspiring the next generation of tax industry innovators at TMNZ.
“Knowing that we can carry on a tradition of innovation gives me great satisfaction. My role now is to continue fostering the right culture and environment for our team to continue their game-changing work.”
Inspirational idea wins Tax Policy Scholarship Competition
A game-changing idea to fight climate change won this year’s Tax Policy Charitable Trust Scholarship.
Each year, the Tax Policy Charitable Trust (supported by TMNZ) awards a scholarship to celebrate the brightest young minds in the industry, and 2022’s submissions were as inspirational as ever.
Entrants were invited to submit ideas that could transform New Zealand’s tax landscape, looking at either environmental taxation, tax administration, or the powers granted to the Commissioner of Inland Revenue to collect information.
The competition, open to people aged 35 and under, generated progressive and innovative ideas from the industry’s young leaders. In the end, one entrant was selected as this year’s winner for her outstanding approach to New Zealand’s tax and environmental challenges.
And the winner is....
Vivien Lei, Group Tax Advisor at Fisher & Paykel Healthcare, won this year’s scholarship for her submission to introduce Impact Weighted Taxation in New Zealand, an innovative idea that would see businesses pay taxes based on their environmental impact.
A panel of leading industry professionals judged Lei’s proposal as the winner among a strong field of candidates. Mitchell Fraser, Daniel Doughty, and Jordan Yates were also celebrated as finalists in the competition.
Lei was crowned the winner at the Tax Policy Charitable Trust’s finals evening on October 19, after each finalist presented their idea to an audience of industry professionals.
Trust Chair John Shewan said the judges were “delighted to see passion and energy behind the submissions and supporting presentations”.
Lei, who received a $10,000 cash prize, described the competition as “an amazing experience”.
“You don't often get many opportunities to think creatively about tax policy, so this was a nice space to do that,” Lei says. “Being able to develop my policy thinking and talk to some of the leading experts was really great — and winning was a huge surprise!”
This year was Lei’s second attempt to win the scholarship following an earlier submission in 2019. Her perseverance and positive attitude paid off.
“I entered when I was still very green in my career,” she says. “Since then, I’ve been mentored by amazing people who have helped with my development, particularly Rachael Bull, Head of Tax at Fisher & Paykel Healthcare, and Joseph Chueh who fostered my interest in tax policy. I was grateful to have their support this time around.”
Tax to fight the climate threat
Lei’s background in the social impact sector and personal concerns about the environment informed her submission idea.
“These are the most difficult problems of our time,” she says. “I’m hoping my idea will bring the conversation to the fore and spark other young minds in our industry to think about how tax might influence positive environmental outcomes.”
The Tax Policy Scholarship Competition is proudly supported by TMNZ, which invests 100% of its profits back into the environment and community, through strategic philanthropic partner, Whakatupu Aotearoa Foundation. Lei believes that tax professionals can help to build a better future for Aotearoa.
“It’s scary to think about the trajectory we are on with our natural capital, so it’s important for our industry to think of ways to help,” she adds.
Inspiring future tax leaders
Tax Policy Scholarship Competition Judges commented that this year’s entrants will inspire future generations as well as today’s professionals.
“This competition is all about supporting and inspiring future tax policy leaders. The results from this year and from earlier years’ competitions reflect the presence of emerging talent that will ensure the continuation of leading tax policy research and thinking in New Zealand,” said the judges.
Find out more about the Tax Policy Scholarship Competition here.
TMNZ: 100% invested in a better Aotearoa
We’re proud to invest 100% of our profits in Whakatupu Aotearoa Foundation to help the environment and community. We have a shared goal to help build a better Aotearoa and make a difference to our people and planet. Discover how working with TMNZ enables us to achieve our goals.
Nearly 20 years after we broke the mould as the world’s first tax pool, we’re reimagining what it means to be a purpose-driven business by investing our profits back into the people and environment of Aotearoa through the Foundation.
In 2003, TMNZ was born, from a desire to help improve the tax environment for New Zealanders. Our founder Ian Kuperus created the first ever tax pooling intermediary in April that year, becoming the first mover in an innovative, uncharted industry.
Our company has evolved significantly since then.
Now operating a pool of up to $10 billion, we have supported more than 100,000 taxpayers. Over the decades, we have helped countless businesses and sole traders better manage their Inland Revenue tax payments, making the provisional tax system easier for New Zealanders to navigate.
Aside from driving tax innovation, philanthropy has always been a significant part of our story. Here’s how it has informed our past, and how it will influence our future.
Our history of giving
In the early days of TMNZ, our founders Ian and Wendy Kuperus had a strong philanthropic vision; to support organisations reaching communities across Aotearoa, making a difference in the lives of New Zealanders. For many years they donated significantly through their private charitable foundation, sharing the stories of impact with people along their journey.
Ian and Wendy stepped back from the day-to-day running of our business in 2011, but over the past 11 years, their ambition to make Aotearoa a better place has strengthened. With the growing pressures on our environment and social challenges in our communities, their goal of making an impact has grown.
As more people and businesses join our tax pool each year and our business continues to grow, we have increased our efforts to ensure we make a difference with our profits and benefit New Zealanders for generations to come.
In 2020, Ian and Wendy decided they would commit the profit of the business to Whakatupu Aotearoa Foundation to support philanthropy and charitable initiatives. They wanted to enable TMNZ to help drive change in New Zealand and create something that would leave a lasting legacy, addressing some of the key issues facing our country.
How Whakatupu Aotearoa Foundation works
Whakatupu Aotearoa Foundation was established in 2020 to continue the great work of our founders. All of TMNZ’s profits are directed towards Whakatupu Aotearoa Foundation to support philanthropic and impactful initiatives, and our goals and objectives as a business and Foundation are more closely aligned than ever. Everything we do as a company is designed to give back to New Zealand.
The Foundation and TMNZ have a vision for a restored and thriving Aotearoa. Our business generates profits and resources that go towards these strategic philanthropic endeavors. Our people are all engaged in this purpose every day.
Everyone who works at TMNZ is connected to our purpose and the work of our Foundation. Our people know that alongside their day job of making tax more flexible for Kiwis, we have an underlying objective to make a difference to our nation’s future.
Climate change is a significant focus area for the Foundation. We are seeing rapid changes to our environment that pose a threat to our future, our people and our ecosystems. The Foundation also strives to help marginalised and disadvantaged communities, which are more significantly impacted by our nation’s challenges, including the threat of climate change.
Whakatupu Aotearoa Foundation invests in projects that are designed to create lasting impact for our environment and communities. The Foundation seeks to ignite ideas that may not otherwise have been realised and its support is both financial and strategic. People working for the Foundation offer guidance and connect projects to external skills through the Foundation and TMNZ’s broad network.
Whakatupu Aotearoa Foundation is inspired by the entrepreneurial spirit of TMNZ’s founders. As the first tax intermediary in the world, TMNZ took risks to get where it is today, going to places where none had gone before. The Foundation promises to do the same, and help to accelerate change as quickly as possible to tackle complex issues.
How does the Foundation do things differently? By making catalytic investments to help set up projects and platforms such as Live Ocean Foundation. Having seen first-hand through their sailing careers how interconnected the world is through the ocean, and realising the critical need to look after it, yachtsmen Peter Burling and Blair Tuke founded Live Ocean Foundation.
It partners with exceptional New Zealand scientists, innovators and communicators to scale up action for a healthy ocean. New Zealand has the world’s fourth largest ocean area, yet only 0.4% is protected. Oceans are one of our greatest allies in the fight against climate change and we must do more to look after them. Whakatupu Aotearoa Foundation has been supporting Live Ocean from its early days to achieve its goals.
Purpose for our people
We’re proud to be a purpose-led business, investing in our people, clients, communities, and the environment. Our purpose is underpinned by our core values; be socially conscious, be the change, collaborate and connect, and make it easy.
Increasingly, people are looking for purpose in their work, and we are proud to offer each of our employees the chance to donate $1,000 to a registered charity of their choice every year. It’s a small gesture that makes a big difference — our people can personally direct funding to a charity that has affected their lives, or the lives of loved ones.
We give autonomy to our people, enabling them to engage in philanthropy from a personal level and contribute to causes that are meaningful to them, as well as supporting Whakatupu Aotearoa Foundation through their everyday work at TMNZ. The initiative has helped us to learn more about our people and what is important to them as we continue to embed philanthropy into our company.
Becoming more sustainable
In line with our goal to build a restored and thriving Aotearoa New Zealand, at TMNZ and Whakatupu Aotearoa Foundation we have turned the spotlight on ourselves over the past year to deliver a holistic approach to sustainability.
Earlier this year, we moved our headquarters in Auckland to a state-of-the-art sustainable office on 23 Customs Street, putting the environment and our people at the heart of the design.
During the year leading up to the move, we developed our sustainable new headquarters with consideration for climate change, environmental impact and waste mitigation, as well as providing a welcoming space for our people, and clients, and partners of TMNZ and the Foundation.
Engagement sessions with our employees ensured that everyone was involved in the moving process. Every aspect of the design, from flooring to furniture, was chosen with sustainability in mind, with recycled and reused materials incorporated throughout,
The vision was made a reality on moving day in March as we moved into our new home. TMNZ and Whakatupu Aotearoa Foundation have a continued commitment to reducing our environmental footprint, cutting down on waste, and finding new ways to improve on sustainability.
Relentless innovation
True to our values back in 2003, TMNZ remains relentlessly focused on tax innovation and making life easier for our clients. Technology will continue to drive innovation and enhance our services in the years to come.
Our business is in transformation mode, and we will continue to explore new ways to meet our clients’ growing demands.
Already this year, we have introduced Inland Revenue integration for our clients, with the help of Reckon/APS, and sustainable e-signature provider Good Sign. Further innovation is on the way.
We have been selected by Ministry of Business, Innovation and Employment as delivery partner, for the R&D Tax Incentive In-Year Payments Scheme. New Zealand businesses performing eligible R&D will soon be able to access R&D Tax Incentive credits much earlier, with the introduction of in-year payments in 2023. We are excited to be part of a solution that will help R&D companies doing great work to grow our economy.
100% invested in a better Aotearoa
By delivering a great service to our clients, making a profit, and donating to Whakatupu Aotearoa Foundation, we can help to tackle environmental and social challenges, putting our country in a stronger position to face the future with confidence.
Our goal to deliver the best tax solutions for Kiwis won’t change. But the impact we can make will. Whether it’s delivering flexible tax services to our clients, or working with charitable partners to drive change across Aotearoa, both TMNZ and the Foundation are committed to making a positive impact.
By investing our profit back into the Foundation to support its initiatives for the environment and community, our clients, our business, and our Foundation are all in it together.
Carl Vink, Chief Executive of Whakatupu Aotearoa Foundation, says: “It is an exciting journey, that we all are on across TMNZ, the Foundation and our project partners. We are united by taking on the biggest challenges facing our nation. There is no better motivation."
“This is such a unique opportunity to make a difference and infuse the goals of the Foundation into TMNZ,” adds Chris Cunniffe, Chief Executive of TMNZ. “Our business is fully invested in our country.”
Burling and Tuke on building a better Aotearoa
America’s Cup winners and Olympic gold medalists, Peter Burling and Blair Tuke share their knowledge on how to make an environmental and social impact.
From left: Blair Tuke, Laura McGoldrick, Chris Cunniffe - TMNZ CEO, Ian Kuperus - TMNZ Founder and Peter Burling
TMNZ and the Whakatupu Aotearoa Foundation share the vision of a restored and thriving New Zealand, and we are proud to partner with like-minded organisations as we strive to build a better future for Aotearoa and its people.
In June, we welcomed Peter Burling and Blair Tuke, founders of Live Ocean and co-CEOs of the New Zealand SailGP Team. At Pilkingtons in Auckland CBD, the duo spoke to TMNZ clients about building their ocean conservation organisation, Live Ocean Foundation, and their goals to make a meaningful impact on ocean health in New Zealand.
The yachtsmen set up the charitable entity Live Ocean Foundation just before the Tokyo Olympics and recently launched Live Ocean Racing, which is a sailing team with a current focus on female development in high performance foiling boats. The Foundation partners to scale up local marine science, innovation and outreach with global implications.
At TMNZ, our clients are a key part of what enables us to direct 100% of our profits to Whakatupu Foundation Aotearoa for initiatives that enable Aotearoa to thrive. One of the organisations we fund is Live Ocean Foundation, and our recent event allowed us to demonstrate the great work undertaken by the organisation.
Peter and Blair have an inspirational story to tell. Both spoke passionately about their reasons for setting up their purpose-driven venture, using their careers to make an environmental impact, and their pride in winning the first-ever SailGP Impact League trophy.
Ocean challenges and opportunities
The duo spoke about their love of the ocean from an early age, how that has shaped their careers, and the formation of the Live Ocean Foundation.
Blair, from Kerikeri in Northland, says he was “lucky” to have grown up in New Zealand, living close to the ocean, and spending most of his life out on the water.
A key moment for both arrived in 2017-2018 after Blair and Peter took part in the round the world Ocean Race. The vastness and beauty of the ocean prompted the pair to apply their skills and use their platforms for a healthy ocean ..
“We saw some really unique places around the world,” says Blair. “We saw the power of the ocean, and realised what we could do with our profile and position.”
Peter, from Tauranga, says it is vital for the planet to have a healthy marine environment, as 94% of New Zealand’s country-wide area is covered by ocean.
“As a nation, we have a big contribution to make on the world stage. But we are a long way behind in terms of the way we look after the ocean and our conservation policies. We have a big opportunity to make some incredible steps forward.”
Live Ocean’s purpose
The pair’s Live Ocean Racing team competes in international events and raises awareness about ocean conservation.
Blair says the team has “purpose in its DNA”.
“We wanted to use our sporting platform right from the foundation’s inception. It’s a team that races on, and for, the ocean.”
Live Ocean Foundation is an official charity partner of the New Zealand SailGP Team that competes in the elite international sailing competition SailGP, further raising its profile.
“It’s amazing to have our purpose baked into the sport,” says Peter. “You get to reach so many people you wouldn’t otherwise with important environmental messages.”
Peter and Blair attended the UN Ocean Conference in late June as part of their efforts to raise ocean awareness, meeting with the UN’s Special Envoy for the Ocean, Peter Thompson.
The pair said they were surprised at how quickly the international community had supported them.
“It’s amazing to see people getting behind us. But New Zealand has got lots of areas where we need to step up to meet international standards but we need to also do that in a way that’s unique to our country,” Peter adds.
World impact
While SailGP is the first climate-positive sport and entertainment property, it has ambitious targets to further reduce its carbon emissions - going beyond the UN Sport for Climate Action goal to make 50% absolute cuts by 2030 and achieve net zero by 2040.
Peter says the competition is taking “strong measures to try and mitigate its footprint”.
In a world-first for a sporting competition, SailGP is rewarding teams for their environmental performance. The competition’s Impact League ranks each team against environmental and social criteria, ranging from clean energy usage to food waste.
The New Zealand SailGP Team won the first edition of the Impact League, taking home US$100,000 for the Live Ocean Foundation.
Blair calls the trophy “a seriously proud moment for the team”.
“I’m proud of our team for using our voice, and seeing the enthusiasm to be better. All of the teams in SailGP are improving, and that’s ultimately what we’re all after, for everyone to lower their footprint.”
Personal responsibility and the role of business
When asked how New Zealand businesses should consider a purpose-led journey, Peter urges companies to think big.
“Be ambitious,” he urges. “Try and be passionate about what you’re doing. We’ve been lucky to find something we are passionate about, but there are so many worthy issues out there.”
Blair offers advice to any company considering putting environmental or social impact at their core.
“Find an issue you identify with. That means you’ll be able to integrate it within your business or life more easily. We’re fortunate with Live Ocean because it’s linked to everything we do every day.”
To find out more about Live Ocean, visit www.liveocean.com
To see the other ways we’re helping to build a restored and thriving Aotearoa, visit www.whakatupuaotearoa.org.nz
Tax Policy Scholarship showcases the next generation of talent
Four bright young industry minds have emerged as finalists in this year’s Tax Policy Scholarship Competition, an annual prize hosted by the Tax Policy Charitable Trust.
The biannual competition, which supports the continuation of leading tax policy research and thinking in New Zealand, enters its fourth round in 2022. The first competition was run in 2015.
The scholarship is designed to inspire the next generation of tax industry leaders. This year, entrants under the age of 35 were invited to propose significant reforms to our current tax system or analyse potential weaknesses and unintended consequences from existing laws, and propose changes to address them.
Entrants were asked to tackle one of three topics: environmental taxation, tax administration, or the powers granted to the Commissioner of Inland Revenue to collect information for tax policy purposes. Participants were invited to address the topics with creative ideas backed up by reasoned research and analysis.
We are delighted to announce the four finalists for this year’s competition, selected by our panel of leading tax industry professionals.
Daniel Doughty
Daniel is a Senior Consultant with EY in Wellington. He has proposed the introduction of a small business consolidated reporting regime to simplify tax reporting for small companies.
The regime would consolidate pre-existing tax obligations into a single report to be filed every second month. Inland Revenue would send an automated income summary out at the end of the year, similar to those currently prepared for individuals.
Mitchell Fraser
Mitchell is a Tax Solicitor with Mayne Wetherell in Auckland. Mitchell is concerned that the recently-expanded powers granted to Inland Revenue to collect information for tax policy purposes could create unintended consequences.
He believes the new powers risk political interference, conflicting with the IR’s need to be politically neutral. Mitchell proposes identifying alternative means to collect this information, including through Statistics New Zealand.
Vivien Lei
Vivien is Group Tax Advisor with Fisher & Paykel Healthcare, and finance lead with the Fisher & Paykel Healthcare Foundation.
Vivien proposes to change New Zealand’s environmental practices through the introduction of an impact-weighted tax regime. Under this model, organisations would be taxed on their net positive or negative impact on the environment.
Jordan Yates
Jordan is a Senior Tax Consultant with ASB in Auckland.
Jordan believes the tax policy landscape is fractured, and suffocated by political roadblocks. His proposal is to establish an independent statutory authority that would be responsible for the independent management of fiscal policy, as it relates to the tax base.
Selecting a winner
The finalists were announced on 2 June, and each will go on to develop a 4,000-word submission on their proposal.
The four will be invited to present their final proposals and answer questions at a function in October 2022. The winner will be announced that evening.
Our Tax Policy Scholarship Competition celebrates creative thinking from young professionals and also provides a springboard for the brightest industry minds to develop their careers.
Nigel Jemson, the winner of the 2019 competition, says: “Entering the competition was a terrific opportunity for me to grow and develop my tax policy thinking and connect with leading minds in the tax community. Winning the competition has given my career a boost and since, I have enjoyed a range of great roles in tax for leading businesses, Spark and PwC, and continued my involvement in and passion for New Zealand tax policy.”
Chris Cunniffe, Tax Policy Charitable Trust Committee Member and TMNZ Chief Executive, says this year’s entries underline the strength of the next generation.
“We’re consistently delighted with the breadth and the freshness of thinking young people bring to this competition. The competition provides a forum to share ideas, and secondly, ensures that creative tax policy is not the sole domain of people who have worked in the industry for a long time. As an industry, we are open to fresh thinking and new ideas.”
Tax Policy Charitable Trust Chair John Shewan says the entries prove the industry’s future is in good hands.
“New Zealand has been very fortunate to have so many competent tax leaders involved in developing policy for the betterment of our country. It’s very exciting to be around the next generation of future tax policy influencers, who are already, at a young age, focused on innovative opportunities to enhance the tax landscape.”
Michelle Redington, Chief Tax Counsel at Inland Revenue, who was the guest speaker at the event where the four finalists were announced, says it is fantastic to see the Tax Policy Charitable Trust create opportunities for the next wave of tax policy thinkers.
“Throughout my career, I have been very lucky to be supported by some of New Zealand’s preeminent tax leaders, who have been fantastic teachers and mentors,” she says. “I’ve enjoyed a diverse career in tax, spurred on by a need to solve complex problems, and I’m proud to be able to give back to the next generation of talented tax enthusiasts.”
Find out more about the Tax Policy Scholarship Competition, here.
TMNZ’s sustainable office: how we moved and improved our environmental footprint
Our new Auckland office aligns with our ambition to build a more sustainable future for Aotearoa. Here’s why we made the move.
When we kick-started the process of finding a new Auckland home last July, we were eager to do things differently and place a strong emphasis on sustainability. At TMNZ, we’ve always been conscious of the environment, but we wanted to go a step further as we developed our new corporate headquarters.
We wanted to ensure people and the environment were at the heart of our new workspace design. We needed to find the right setting for our Auckland employees and develop an office that would help us become more sustainable. Moving required a holistic approach, incorporating climate change, environmental degradation, and waste mitigation.
“We wanted to create a great workplace for our people to enjoy. They were involved throughout the project,” says Amanda Thorpe, TMNZ’s Head of People and Culture. “Our people helped us select the office space and we ran engagement sessions with employees to discuss aspects of the design. We worked together to make our vision a reality for both TMNZ and the Whakatupu Aotearoa Foundation, as we continue to support the trust’s philanthropic efforts.”
The environment is a big focus for TMNZ and the Whakatupu Aotearoa Foundation. Through the Foundation we look to invest in initiatives that tackle climate change, environmental degradation, declining biodiversity, and waste. It was very important to us to give the same environmental focus and attention to the design of our new workplace.
Building a sustainable home
We selected an office at 23 Customs Street in Auckland and enlisted Peter Doyle, from NOWW Advisory and Wingate Architects, to help us build an eco-friendly workspace. Together we explored how we could reduce our environmental footprint with each decision.
”Materials used in the new space have been chosen with sustainability in mind,” says Sarah Bryant, Associate Senior Interior Designer at Wingate Architects. “TMNZ’s new home features Jacobsen’s carpets made from recycled drinking bottles, Tarkett hard floors manufactured from recycled PVC, and Green Tag Certified Autex Cube ceiling tiles, made with at least 40 percent recycled materials.”
We selected sustainably-sourced mataī joinery and panels, and recycled rimu tables. We also chose sustainable furniture fabrics for every chair and stool.
No detail was too small; desktop surfaces at TMNZ are now made of all-natural linoleum, produced from pure oxidised vegetable linseed oil and natural pine rosin. We also made use of recycled products, including a reused office pod that hosts our breakout meetings.
Making an impact, without waste
While we took a careful approach, moving from one place to another inevitably produces waste. In our case, much of our old furniture was no longer suitable for the new office. Our people worked to find a solution and struck upon an idea to recycle and make a social impact at the same time.
To ensure nothing went to landfill, we teamed up with All Heart NZ, a charitable organisation that works with corporates to redirect and repurpose unwanted corporate and construction items. The organisation offers ‘Reduce partnerships’, which help to further develop the sustainable, ethical, and social aspects of procurement and supply chain management. All Heart NZ has established a national circular solution for redundant corporate items, which creates employment, volunteerism, and training opportunities while supporting local community need.
All Heart NZ helped us to achieve a positive social and environmental outcome by redirecting 216 items weighing more than 6,500kgs. With items reused, repurposed, and resold, 100 percent of the benefit went to New Zealand communities in need.
Joe Youssef, All Heart NZ’s Founder and Chief Encourager says: “We know that improving the ways we source and dispose of corporate goods can positively impact our planet and people. We partnered with TMNZ to redirect all redundant materials in preparation for their office move. Together we created a sustainable solution and community impact to be proud of.”
Through our partnership, we added $16,700 in community impact value and avoided 7.6 tonnes of carbon emissions. All Heart NZ’s partnerships have supported 439 different communities throughout Aotearoa and the Pacific, helping them save or raise more than $9.1 million, while at the same time assisting corporate partners to divert more than 3.7-million kilograms from landfill.
A welcoming space for our people
Our office was designed for our people. Collaborative spaces and new technology will enable us to work together and with our customers and partners regardless of where they are in New Zealand. Technology including whiteboard cameras, immersive collaboration spaces and fully cable-free working will make us more connected than ever and reduce the need for unnecessary travel. What’s more, we have chosen technology suppliers that lead in terms of their sustainability commitments while at the same time provide a seamless employee experience.
We moved into our new workspace in March, and our environmental sustainability efforts continue. We have made an ongoing commitment to reduce waste sent to landfill and we’re constantly exploring new ways to improve.
TMNZ and the Whakatupu Aotearoa Foundation have a shared vision of a “restored and thriving Aotearoa”. Our new workspace will allow both organisations to come together with clients and charity partners in an open, inviting environment — one that has been designed to limit the impact on future generations.
While COVID-19 restrictions have prevented us from welcoming visitors into our new home so far, we look forward to showing customers and charity partners our new surroundings in the months to come as we mark new chapters at TMNZ and the Whakatupu Aotearoa Foundation.
Tech for good: how TMNZ and innovation partners are making life easier for clients and helping the planet
TMNZ clients will benefit from a significantly simplified Inland Revenue data connectivity for the first time. We discuss how it will help, the innovative tech companies involved, and the broader benefits it will bring.
The goal of every good business is to make a positive impact on clients, communities and the environment. As a purpose-led organisation, TMNZ strives to make a difference every day. We’re always looking at new ideas to improve our services and meet customer needs. The latest change marks a major milestone to make Inland Revenue (IR) data connectivity available to all.
In years gone by, accountants and agents have had to deal with multiple systems to access accurate IR data for their clients. The process is often laborious and time-consuming, forcing people to access various platforms and spreadsheets to find the information they need.
That’s set to change. TMNZ has been hard at work integrating its systems with Inland Revenue and technology partners, to provide agents with a seamless way of obtaining data sharing consent from taxpayers. Following the integration, tax agents can easily obtain consents and access IR data, all without leaving our platform.
“We’ve been building on the great relationships with Inland Revenue, and technology partners, APS and GoodSign. We’ve worked closely together to deliver this real-time integration without locking people into other platforms they don’t need. We’re thrilled with the result, which allows accountants and tax agents to save time and get on with their work,” says Eric Troebner, TMNZ Chief Technology Officer.
We’ve created a simple and easy IR integration system.
With TMNZ, clients can integrate IR data on our systems without signing up to third-party software. You won’t have to go through several steps to get the integration done anymore — it’s ready at the click of a button. We have taken things one step further, streamlining the requirements from IR to ensure taxpayers only share their data with trusted parties.
Integration is easy to set up. Previously, accountants had to follow a manual process to ask IR for permission to share taxpayer data and subsequently obtain that permission through letters, updated T&Cs, and other correspondence in a time-consuming chain. We have partnered with GoodSign to remove this obstacle.
- Once a tax agent authenticates their client list through MyIR, a standardised digital consent form can be sent to the taxpayers of their choice.
- The taxpayer signs digitally, and IR integration is instantly turned on. This saves agents considerable time and cuts down on repetitive admin work. By using an innovative digital consent process, we can ensure that the right permissions are in place. The entire process is automated and delivered through APS for the integration and New Zealand company GoodSign.
“Whenever TMNZ reach out regarding a project, we know it’s going to strengthen the user experience for our community and it’s been a pleasure collaborating on another successful initiative with the TMNZ team. Congratulations to TMNZ and GoodSign on this project and on their inspiring contribution towards improving the New Zealand environment and ultimately helping tackle global warming.” says Phillip Yarr, APS Head of Product Management.
We invest 100% of our profits in Whakatupu Aotearoa Foundation to help the environment and community. We’re also proud to partner with companies that help the planet and our communities to maximise the positive impact we have as a business.
GoodSign, an environmentally-conscious eSignature provider, will handle all the digital documents and is fully integrated with our platform. No sign-ups are required, and there are no hidden costs for our clients or their customers.
For every 100 documents sent through GoodSign, the company plants 20 trees. We expect thousands of letters will be sent through GoodSign, meaning a better outcome for the environment and tangible climate action.
“It’s great to be working with TMNZ to help simplify the tax data integration and compliance process for businesses throughout Aotearoa. But it doesn’t stop there - our partnership is also about driving positive change for the environment using GoodSign’s innovative eSignature solution,” says John Ballinger, GoodSign co-founder (and Chief Tree Planting Officer).
“We’re proud to invest 20% of all sales to fund tree planting to help curb global warming. TMNZ and the Whakatupu Aotearoa Foundation are also focused on tackling the climate crisis, and together, we can make more of an impact.”
TMNZ is delighted to offer this new service to clients, available to all firms immediately — and use the power of tech for good.
Contact our support team to take advantage of the easiest IR integration on the market.
