A significant shift in how income tax debt can be managed is underway and TMNZ is ready to help you navigate it for your clients.
The Government is introducing a new initiative that expands the use of tax pooling beyond its traditional role in provisional tax management. For the first time, tax pooling can now be used to settle income tax debt – a meaningful development for accountants managing clients with outstanding 2023 and/or 2024 income tax liabilities.
A formal trial commences at the end of March and will run through to 30 September 2027.
Is your client eligible?
To participate in the programme, clients must meet all of the following criteria:
- have income tax debt in the 2023 and/or 2024 tax years
- no overdue GST or PAYE
- no outstanding income tax, GST or PAYE returns
- not bankrupt or liquidated
- and not under legal proceedings related to revenue recovery.
Importantly, clients who already have an instalment arrangement with Inland Revenue for 2023 or 2024 income tax debt can still join the programme.
The enabling legislation is currently before Parliament and is expected to be passed by 31 March 2026.
Why this matters: the case for tax pooling over IR debt
For SME clients carrying income tax debt, the status quo with Inland Revenue is costly. Here’s why resolving debt through TMNZ’s tax pool is a materially better outcome:
| Inland Revenue | TMNZ | |
| Late payment penalty | 5.04% applied to the debt | Eliminated |
| Interest rate | Up to 10.91% | Significantly lower |
| Response times | Up to 15 working days | Prompt, dedicated support |
| Flexibility | Limited | Greater flexibility |
Beyond the numbers, the client experience is fundamentally different. TMNZ operates as a partner in resolving the debt – not as a revenue collector. Your clients will deal with a team that is on their side.
What you need to do right now: nothing yet
We know March is one of the busiest periods of the year with income tax returns due on 31 March. We’re not asking you to act immediately.
In early April, we’ll be in touch again with:
- clear guidance on how to enrol eligible clients in the programme – we’ll make the process as straightforward as possible
- an invitation to our Tax Debt webinar with Q&A, held in late April and led by our income tax specialists – register your interest to secure your spot
Register here
For questions in the meantime, reach out to our team at support@tmnz.co.nz or 0800 829 888
TMNZ has been New Zealand’s trusted tax pooling leader for over two decades, and we’re proud to be the exclusive tax pooling partner of CA ANZ and ATAINZ. We’ll continue to keep you informed as this initiative develops.