Tax pooling for your clients

Support your clients with better cashflow solutions

Two ways you can help your clients with cashflow

1

Let your clients match their provisional tax payments to their cashflow.

Flexitax® gives you cashflow flexibility so your provisional tax payments suit your business, without worrying about IRD interest or late payment penalties.

You can choose to pay provisional tax in lump sums or spread out tax payments over time (up to 75 days after your terminal tax date).

The interest charged is tax-deductible and based on competitive lending rates (lower than bank overdraft fees). Approval is guaranteed and no security is required.

2

Defer provisional tax payment dates, keep money in the business for longer and reduce lending costs.

Tax Finance allows your clients to take control over a future provisional tax payment date and gives the certainty of a fixed fee paid upfront.

Choose a preferred date to make your provisional tax payment. We then transfer back-dated tax into your IRD account so it’s as if you paid on time.

The fee is tax-deductible and based on competitive lending rates. Approval is guaranteed and no security is required.

Benefits

Cashflow flexibility for your clients

By using TMNZ’s tax pool, your clients can pay provisional tax whenever they need to, and we make sure everything is settled on time with IRD.

Save on IRD interest and late payment penalties

If your client has provisional or terminal tax owing to IRD, they can save up to 30% on interest costs and eliminate late payment penalties altogether.

Easy online tools and expert support

Create, save and confirm quotes online, track client savings, download monthly statements and get free advice and support on any tax pooling matters.

Get some cover during tax audits

We have the largest tax pool, with tax going back as far as 2009. We have options for historic liability due to a tax audit or voluntary disclosure.

Enable live IRD data for your clients

The IRD approval process is simple, and our account managers will provide you with everything you need. Save time and eliminate error by integrating your clients live data with our tax pooling tools.

Name*
First Last
Email*
Enter Email Confirm Email
Your firm*

Let our tax experts walk you through how tax pooling could benefit you and your clients.

John Farac, a chartered accountant who uses tax pooling to help his clients.

John Farac helps his clients do tax on their terms

John Farac, Chartered Accountant, Farac Gutierrez Limited

Eliminate penalties and reduce costs.

John easily manages tax payment transactions on his clients’ behalf, so they never face late payment penalties and save on use-of-money interest. It saves them time, reduces their stress and results in word of mouth referrals that help to grow his business.

Flexible payment arrangements

Using TMNZ’s Flexitax, John gives his clients the flexibility to pay what they can, when they can on their underpaid provisional tax liability. Because John is dealing with TMNZ on their behalf, his clients don’t have to worry about a thing and he improves his client service.

Sign up for an instant quote

Create account

Learn more about Tax Pooling

History of tax pooling in New Zealand

The IRD-approved system of tax pooling has operated in New Zealand since rules for tax pooling and Government legislation were passed in 2003. Tax pooling was established to reduce the taxpayer’s exposure to Use of Money Interest (UOMI) and to offer a more flexible means of paying provisional tax.

If you are an accountant working on behalf of taxpayers interested in using the tax pool system, TMNZ can help as an approved tax pool intermediary. IRD only accepts approved tax pooling companies and TMNZ is the largest and industry-leading tax pooling service provider.
What is tax pooling?

Tax pooling enables you to deposit your provisional tax payments into an account held by an IRD-approved intermediary. Payments are date stamped which is why IRD treats it as being paid on time once the transfer from the tax pool to the taxpayers’ IRD account has been made.

Basically, the system gives you the option to pay into the tax pool when it suits you, instead of paying the IRD directly. Once you have deposited the payments into the tax pool, the intermediary will hold these funds in the account until you instruct them to transfer the money into your own IRD account. The payment will be considered “tax paid” once this transfer is made.
How does tax pooling work?

Tax pooling works by having a taxpayer deposit money with a tax pooling intermediary on its provisional tax dates, rather than paying it directly to the IRD. These payments are deposited by the tax pooling intermediary into a tax pooling account at the IRD.
Approved tax pooling intermediaries

For a person to act as an official tax pooling intermediary, they first must be approved by the IRD. The commissioner of the IRD must agree that the applicant meets the legislated criteria and is fit to operate a tax pool. Once the applicant is officially approved, they are given their own tax pooling account with the IRD.

Approved tax pooling intermediaries are legally required to protect the taxpayer’s payment details and personal information. This is a key rule stated within the legislation. This is why all payments to TMNZ go into trust accounts administered by Guardian Trust, New Zealand’s largest corporate trustee, which also oversees the TMNZ tax pool account at IRD.

TMNZ is the leading tax pooling intermediary in New Zealand and was the first ever tax pooling service approved by the IRD. TMNZ has set the standard for reliable, secure tax management, with the high-security systems in place to protect client’s funds. With innovative solutions and a dedicated team on deck, TMNZ is a top choice for business owners across the country. If you are interested in taking advantage of tax pooling, contact TMNZ today.

The benefits of tax pooling

Tax pooling provides numerous benefits for taxpayers. The simpler, stress-free system has helped business owners successfully manage their provisional tax obligations for many years. It’s a better, easier way to pay tax.

The greatest advantage of depositing into a tax pool is flexibility. Tax pooling allows you to make provisional tax payments when it best suits your business cash flow, giving you and your clients greater control over tax and also helping save time in the long run. Ultimately, you decide how to make tax work for you and clients.

Tax pooling also saves you interest costs and completely erases the risk of payment penalties, including underpaid, missed or future provisional tax payments. You won’t have to worry about late payment penalties related to tax audits either, as you will have cover from the tax pool.
Tax pooling and UOMI(use of money interest)

If you are a taxpayer unsure about how much income tax to pay during the year, you run the risk of underpaying tax. This is because your provisional tax is only based off an estimation of annual profit.

If you have underpaid tax due to an incorrect judgement of your liability, you may be exposed to UOMI. Conversely, if you have overestimated the amount of tax you have to pay, the money you could be using for your business could be tied up at the IRD, earning less return. Either situation can place you at a financial disadvantage.

But tax pooling offers a solution for overpaying or underpaying tax. The arrangement allows you to balance overpayments by underpayments within the same pool, which will subsequently reduce costs related to UOMI exposure.
What tax payments can tax pooling assist with?

Various types of payments can be made to a tax pooling account. This includes voluntary provisional tax payments or normal provisional tax instalments, reassessments of income tax, deferrable tax and agreed delay tax. Payments can also be made for meeting increased obligations or reassessments of income tax revenue. However, tax pooling cannot be used for meeting regular tax payments where the amount due is known, such as PAYE or GST.