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About: Tax pooling     Goto   Sponge   NotDistinct   Permalink

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Tax pooling allows New Zealand taxpayers to pool their provisional tax payments together in an account held by a registered tax pooling intermediary at Inland Revenue (IRD) so that underpayments by some can be offset by overpayments of others. Taxpayers receive/pay an interest rate that is higher/lower than IRD's rates if they overpay/underpay provisional tax. Intermediaries operate under legislation set out in the Income Tax Act 2007 and Tax Administration Act 1994. Accountants across New Zealand recommend the use of tax pooling to taxpayers to manage income tax obligations.