Tax pooling is an IRD-approved payment service offered by a commercial provider such as Tax Management NZ that alleviates some of the challenges of the provisional tax system.
It offers you the ability to:
- Make your provisional and terminal tax payments at a time (or in a manner) that suits your business cashflow.
- Reduce the interest you face when you miss a provisional tax payment or underpay income tax for the year.
- Earn better returns on overpaid tax.
Tax pooling also eliminates late payment penalties.
A tax pooling provider, which operates under legislation set out in the Income Tax Act 2007 and Tax Administration Act 1994, holds an account at IRD into which payments are made and held.
It has been part of the New Zealand tax landscape since 2003.
If you're a RightWay customer please contact us on 0800 555 024 or at firstname.lastname@example.org if you would like more information about tax pooling.