Under the COVID-19 stimulus package IRD has discretion on when to waive UOMI and penalties. However, there is no easy checklist to tell you if this discretion will apply to you or not. Given the uncertainty of the current period, here are the principal ways Tax Pooling can help businesses.
Tax Traders exists to help businesses when cash flow flexibility is critical. As an IRD-approved tax pooling intermediary, we are in a unique position to delay upcoming provisional tax payments, giving taxpayers the breathing space they need.
- Guaranteed immediate acceptance – no security or financial disclosures required
- No establishment fees or charges
- Retain working capital in your business
- Low-interest cost
- No upper or lower limits
- Set up in minutes through your accountant
- Funds held securely by Public Trust
- Pay the tax amount at maturity or by installment
Or log in to your account to set up a delayed payment.
How does it work?
Taxpayers simply pay the interest upfront and then pay the upcoming provisional tax at a maturity date up to 14 months later. The provisional tax is held in a Public Trust account at IRD and is transferred to the taxpayer's IRD account at maturity, once the provisional tax is paid. If the taxpayer no longer needs all the tax at the maturity date, there’s no break fee and they only must pay for what they need.
See our finance page for more information.
For your peace-of-mind
During the COVID-19 economic downturn, we will include taxpayers in our Peace of Mind Policy by default. We'll add feeGuard insurance to every tax finance transaction at no extra charge (typically feeGuard would cost +0.50%). This means they are entitled to a full refund of the finance fees on any portion of tax finance that they don’t end up needing at maturity, eliminating the risk of paying interest on tax they don’t end up requiring. This refund also applies should they receive an interest waiver direct from IRD under the government's COVID-19 stimulus package.
See our peace-of-mind FAQ for more information.
Why funding your upcoming tax is an easy decision
- When you delay upcoming payments through Tax Traders, we provide assurance on the finance fee at no cost
- If IR determines you meet the criteria and waive your UOMI interest, we will refund the full amount of your finance fee. No questions asked.
- If IR determines that you are not significantly impacted, you will already have a delayed payment arrangement in place because you've taken proactive steps with Tax Traders.
- Further, if you fund more tax than you end up needing we'll refund that portion of your interest back to you.
If a taxpayer needs cash back in their business now, we can supply a line of credit secured against tax they’ve already paid into the tax pool. A couple of conditions apply to this, so please contact us and we’ll arrange a suitable option for you or your client.
- Deposits remain at the tax date they were made
- We use those deposits as security to advance cash to you at competitive rates
- Set up in minutes (release of funds may be subject to AML identification requirements)
Anything else? Please get in touch
There are additional ways Tax Traders can help – including addressing missed tax payments. Contact us to discuss our flexible options.
Call us any time on 0800 829 872
Email us at email@example.com
- News and updates
- Frequently asked questions
- How tax pooling can help
- Understanding the IR's interest waiver
Resources for download
Peace of mind for tax finance
Access the best of IRD and Tax Traders with complimentary feeGuard.
How tax pooling can help
A one-page guide to relieving cash flow pressure with tax pooling.
- IRD - COVID-19 information page
- IRD - COVID-19 extension of time for tax pooling transfers
- CA ANZ - Coronavirus resources
- Legislation - COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act
- Beehive - COVID-19: Economic Response Package
- New Zealand Government - COVID-19 links
- New Zealand Trade & Enterprise - Coronavirus
- Ministry for Primary Industries - Coronavirus and the effects on trade
- Ministry of Health - COVID-19 Novel Coronavirus