Unexpected crypto tax bill? You have options

If you have extra income tax to pay on gains you made from your crypto trading during the 2024–25 income year, there’s good news.

Tax Traders can help reduce the interest charged by Inland Revenue and eliminate late payment penalties, making things far more manageable.

However, you’ll need to act now, as the legislative deadline to complete the process is 23 April 2026.

Owing additional income tax
can be costly

Once tax is overdue, Inland Revenue charges interest daily until the tax is paid.

Late payment penalties may also apply. For income tax, these penalties are generally applied as follows:

• A 1% penalty the day after your payment was due.
• A further 4% if the tax remains unpaid after seven days.

Over time, these charges can add up quickly – increasing the total amount you need to pay on top of the original tax bill.

How paying Tax Traders works

Tax Traders is an Inland Revenue-registered tax pooling provider.

We operate a tax pooling account that allows taxpayers to pool their provisional tax payments. Payments deposited in this account are date stamped at the time they are made and held at Inland Revenue.

If someone has underpaid their tax, they can purchase tax from someone who has overpaid into the pool and apply it against their own liability with Inland Revenue.

Tax Traders facilitates the transaction between the two parties at interest rates that are much more favourable than Inland Revenue’s interest rates.

This can make a significant difference when you’re facing a crypto-related tax bill in terms of reducing your interest cost and eliminating late payment penalties.

1
You pay the tax amount (plus Tax Traders’ interest cost) to us.
2
We arrange for the date‑stamped tax you require to be transferred from our tax pool account to your Inland Revenue account.
3
Once Inland Revenue processes the transfer, it treats the tax as if it were paid on the original due date – removing any interest and late payment penalties showing on your account.

Key information – what you need to
know about paying with Tax Traders

Tax Traders can assist with income tax payments for the 2024–25 and 2025–26 income years.
Flexible payment options are available, including single payments or instalment options, provided the transaction is completed within the legislative timeframe.
You have up to 75 days after your terminal tax date to settle your tax.
For most crypto investors, the terminal tax date for the 2024–25 income year is 7 February 2026, unless you are linked to an accountant with an extension of time to file your tax return.
Tax pooling operates under a legislated framework. The legislative provisions governing tax pooling are set out in sections RP17–RP21 of the Income Tax Act 2007, and sections 36BB, 120OD, 120OE, 124S and 124X of the Tax Administration Act 1994.

Don’t forget – deadline looming

Transactions with Tax Traders must be completed within legislated timeframes.

If your terminal tax date is 7 February 2026, your income tax for the 2024–25 year must be settled by no later than 23 April 2026.

If you are linked to an accountant who has an extension of time to file your tax return, you’ll have until 18 June 2026 to complete your transaction.

If a transaction is not completed within these legislative timeframes, Tax Traders will not be able to assist. In that situation, the outstanding tax – along with any interest and late payment penalties – will need to be settled directly with Inland Revenue.

What about prior income tax
periods – can Tax Traders help?

For the 2023–24 income year and earlier, Tax Traders may be able to assist if you’ve received a notice of reassessment or have made a voluntary disclosure to Inland Revenue.

Making a voluntary disclosure can reduce any shortfall penalties that might otherwise apply.

In some cases, it may also enable you to use tax pooling for periods where a tax return has not yet been filed.

Tax on crypto gains doesn’t
have to be overwhelming

If you’ve been contacted by Inland Revenue and have additional tax to pay on your crypto or cryptocurrency trading, you’re not alone.

Many investors are finding themselves in this position as crypto activity attracts increased oversight from Inland Revenue.

Tax pooling may be able to help reduce interest costs and remove late payment penalties, giving you more manageable options for paying your crypto tax.

Let's get started

Talk to an accountant

Speak with an accountant about Tax Traders if Inland Revenue has contacted you – chances are they already use us and can help you decide whether this option is right for you.

Already spoken to an accountant?

If your accountant has confirmed what you owe, then get in touch with Tax Traders to set up your transaction for the 2024-25 income year.

Call us

About Tax Traders

Tax Traders is New Zealand’s leading tax pooling provider.

We’re approved by Inland Revenue and operate under the legislated tax pooling framework, which has been in place for more than 20 years.

Since 2012, we’ve worked with thousands of accountants, advisers, businesses and individuals to make paying income tax – including tax on crypto gains – more flexible and more affordable.