Flexitax ® by TMNZ pay provisional tax when you want, not when IRD tells you to

TMNZ is an IRD-approved tax payment provider which has been operating in New Zealand since 2003.

It addresses one of the major problems of the provisional tax system – that is, IRD expects tax pre-payments to be made based on methods and dates it sets. These do not always align with how businesses earn their income. But, as you know, IRD will charge interest and late payment penalties if you do not pay what you owe on time.

Flexitax allows you to pay your income tax at a time and in a manner that suits you, at an interest cost that is around 30 percent cheaper than what IRD charges on underpaid/ unpaid tax and without having to worry about late payment penalties.

WHAT CAN FLEXITAX BE USED FOR?

Flexitax can help manage income tax payments for the current tax year or one just completed. It lets you: • Defer payment of upcoming provisional or terminal tax obligations to a date in the future or pay these off in instalments, without incurring IRD late payment penalties. • Reduce the cost of missed or underpaid provisional tax payments. It can also help in situations where taxpayers have been reassessed by IRD due to an audit or voluntary disclosure. Using Flexitax can help mitigate interest cost and eliminate any late payment penalties.

WHO WILL FIND FLEXITAX USEFUL?

Anyone who wants greater payment flexibility will find it useful. Flexitax is also an option to consider if you wish to manage cashflow, or as an alternative to using your business overdraft if you want to free up money to reinvest into your business.

WHO CAN USE FLEXITAX ?

Those who use the standard uplift, estimation and GST ratio methods to calculate their provisional tax payments are eligible to use tax pooling. Legislation does not normally allow tax pooling to be used if you are using the accounting income method.

WHO USES FLEXITAX ?

Flexitax is a product from New Zealand’s largest tax pooling provider, TMNZ. Tax pooling is now a mainstream part of New Zealand’s tax system. It is recommended by accountants and used by most of New Zealand’s top 200 companies, state-owned enterprises, fund managers, major banks and thousands of small and medium sized businesses to better manage their provisional tax payments and mitigate their exposure to IRD interest and late payment penalties.

FURTHER INFORMATION

TMNZ is New Zealand’s first and largest tax pooling intermediary.

It is registered with IRD and operate under legislation set out in the Income Tax Act 2007 and Tax Administration Act 1994.

TMNZ’s founder Ian Kuperus not only came up with the concept of tax pooling, but he also worked with IRD to write legislation and set up a framework. As such, they are the provisional tax and tax pooling experts.