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.
1. Delaying upcoming terminal or provisional tax payments
2. Providing a line of credit against tax deposits in the pool
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.
Or log in to your account to set up a delayed payment.
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.
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.
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.
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 team@taxtraders.co.nz