If you have a reassessment resulting from an audit or voluntary disclosure, tax pooling can help.
Inland Revenue (IR) allows taxpayers to use a tax pool to address audits and voluntary disclosures within certain criteria. Through the pool, a taxpayer can purchase historical tax payments that another taxpayer has made but doesn’t need – saving more than 30% over the cost of use-of-money interest incurred if settled directly with IR.
- Save more than 30% over the cost of use-of-money interest if the settlement was made directly to IR.
- Can be a helpful cost-mitigation strategy as you work through the audit process.
- With the exception of income tax and RWT, you must have previously filed a return for the tax type and period that is the subject of the reassessment, even it if was a nil return.
- If it is for income tax or RWT, IR has a discretion to allow use of tax pooling, even if no previous return has been filed. You should seek leave of IR early in the process. Tax Traders can assist with this – please contact us
- Sometimes it is beneficial to write into settlement deeds that use of tax pooling as part of the settlement is agreed by IR. Tax Traders can assist with drafting this language for you.
Greater protection with Tax Traders
- 100% IRD approved
- Public Trust holds and approves all payments and transactions
- Independently audited
- Money back guarantee if Inland Revenue decline your request