The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Greg Millar
Published on

Powered by Tax Traders tax pooling

Taxes are undoubtedly an unavoidable aspect of life, yet that doesn't imply they always represent the most optimal utilisation of your resources.

Instead, retiring high-interest debt, investing in modern equipment, expanding your sales force or upgrading your IT infrastructure might yield a more favourable return on your investment.

Tax finance, made accessible via an IRD-approved tax pooling intermediary, opens the door to these possibilities.

In the past 12 months, Alliott NZ clients taking advantage of IRD-approved tax pooling provided by Tax Traders saved a combined amount of $29,000 in interest plus another combined total of $219,000 in penalties.*

These are just two of the benefits of paying your income tax into the IRD approved intermediary, Tax Traders. There is also the added benefit of shorter wait times with the IRD and/or multiple transfers between teams to convey a solution, saving you our time and cost as well. Plus cash flow flexibility, lower interest payment rates and higher interest receivable rates.

Short on cash to pay tax? Delay an upcoming provisional payment by up to 22 months.

If you know in advance of a provisional date that you’re unable to make a deposit or full payment of the tax amount due, or you wish to retain cash in your business, you can set up a finance arrangement through Tax Traders to pay the provisional tax.

When you put measures in place in advance, Tax Traders is able to offer you a significantly lower interest rate, so it is well worth talking with your accountant if you’re looking for flexibility. This option is particularly helpful in industries where income is seasonal or for businesses that are growing and therefore need to reinvest, allowing cash flow to be managed more effectively throughout the tax year.

Since its inception, Alliotts have worked with Tax Traders to ensure that our clients achieve better outcomes than just paying tax to the IRD directly.

To find out if you could benefit from tax finance, please talk with the Alliott NZ team in Auckland on 09 520 9200 or visit https://home.taxtraders.co.nz/.

* Reporting period 1/9/22 to 31/8/2

Topics: finance Inland Revenue Department IRD provisional tax return on investment small business tax