TAX POOLING
Tax Management NZ (TMNZ)
TMNZ is an IRD-approved tax pooling provider. Tax pooling is a way to manage your provisional tax payments more flexibly, and to reduce the cost if you've underpaid or missed a payment.
Normally, if you underpay your provisional tax, IRD charges use-of-money interest and late payment penalties. Tax pooling lets you settle what you owe at a lower interest rate and avoid those penalties altogether. It works because TMNZ holds a pool of tax payments that have already been made to IRD by other taxpayers, and they can transfer the right amount to cover your shortfall.
We also use TMNZ to help clients manage their provisional tax payments proactively. If your income varies year to year or your cashflow is uneven, tax pooling gives you more options for when and how you pay, without the risk of getting it wrong and facing penalties.
We arrange everything on your behalf. If tax pooling is relevant to your situation, we'll let you know and talk you through it.