Cash flow flexibility is what we are about. It's helpful at the best of times, and necessary for many businesses right now. We are always here to help, now more than ever. We’re in constant conversation with the IRD as we work through the specifics of the Government’s stimulus package with them, and how tax pooling can continue to support New Zealand businesses at this time.
This is a dynamic situation. We'll be working to keep you informed of what the package means for tax pooling and how we can best support you and your clients.
This option now bundled with new tax finance arrangements, at no cost.
Delaying an upcoming tax payment is one of the fastest and easiest ways to ease cash flow pressure now.
To further help New Zealand businesses we have made our feeGuard option complimentary, and are bundling it with all delayed payment arrangements from today.
feeGuard refunds the finance fee on any portion of a delayed payment that the taxpayer doesn't need at maturity. If the amount of tax finally needed is over-estimated, your client gets that portion of the up-front fee back. This insurance option has traditionally required you to opt-in at the cost of an additional 0.5% on the finance rate.
From today, all customers have access to that extra peace of mind by default and at no extra cost.
A one-page guide to relieving cash flow pressure with tax pooling.
In the face of rising cash flow pressure for businesses, we’ve summarised the most immediate tax pooling solutions onto one page.
Please feel free to forward this PDF to any of your clients who would benefit from accessing more working capital for their business.
How Tax Pooling Can Help (PDF)
Tax pooling continues to be the IRD's policy of choice for taxpayers to delay their upcoming provisional tax requirements.
This week's stimulus package is a welcome set of supports, targeted at people and businesses who will be in most need of help. Alongside this, tax pooling remains a key tool to help taxpayers access cash flow flexibility and is not limited by the constraints and criteria within the stimulus package.
The two key changes for tax and tax pooling are:
The discretion will be available where the taxpayer's ability to pay their tax on time has been significantly adversely affected by the virus. We expect the conditions when the Commissioner might use her discretion to be fairly tight but it’s likely taxpayers will have to prove that:
While the wording does cover provisional tax, the discretion appears to be aimed mostly at monthly payments (i.e. not provisional tax). Tax pooling continues to be the IRD's policy of choice for taxpayers to delay upcoming provisional tax requirements.
It is likely that the IRD will decrease their interest rates for both under- and over-payments of tax. Based on the Official Cash Rate being cut to 0.25% this week, we expect that:
We anticipate these new rates will apply from 7 May, and will keep you informed as the details are confirmed.
We’re in constant conversation with the IRD as we work through the specifics of the policy with them, and how tax pooling can continue to support New Zealand businesses at this time.
This is a dynamic situation. We'll be working to keep you informed of what the package means for tax pooling and how we can best support you and your clients.
Tax Traders has a number of options available to help your clients manage their cash flow and tax payments at this time, including borrowing against your tax deposits, addressing missed tax payments and crafting bespoke solutions for your clients. Please reach out and see what we can do to help your clients at this time.
Call us any time on 0800 829 872
Email us at team@taxtraders.co.nz