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Budget 2024: The Government has announced FamilyBoost, a proposed new childcare payment to help eligible families with the rising costs of Early Childhood Education (ECE). Find out more: Beehive.govt.nz

Tax pooling clients pay their provisional tax to registered intermediaries. Intermediaries then deposit payments into an account with us. We hold the payments until intermediaries tell us where to transfer them.

We treat transfers to a client account as a tax payment from the date it was paid into the tax pool.

Tax pooling payments

Payments can be made to a tax pooling intermediary for:

  • voluntary or normal provisional tax payments
  • reassessments of income tax
  • deferrable tax
  • agreed delay tax
  • use-of-money interest payable on the above
  • mitigating use-of-money interest in the first year of provisional tax
  • meeting increased obligations or reassessments of some non-income tax revenues.

Tax pooling for voluntary disclosures

You can use tax pooling when you have made a voluntary disclosure but there is no assessment. You can apply in writing to use tax pooling funds.

Email your application to [email protected]

Stages of tax pooling

Until an intermediary transfers a payment to the client account, taxpayer obligations are not met.

Until payments are transferred, clients may receive reminders and overdue statements.. Late payment penalties or use-of-money interest will not apply until after an income tax assessment.

Tax pooling interest

Tax pooling intermediaries may pay interest on payments made to them. Unless their client has a certificate of exemption, resident withholding tax must be withheld from this interest.

Clients do not need to deduct resident withholding tax from interest payments they make to a tax intermediary.

Interest payments are income tax deductible when made:

  • to a tax pooling intermediary
  • from the intermediary to a client.
Last updated: 15 Mar 2024
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