HomeBusiness News UpdatesPay Provisional Tax When It Suits You

Pay Provisional Tax When It Suits You

Many people would have paid their first instalment of provisional tax for the 2016 tax year on 28th August, but what they probably did not know is there is a way which lets them choose when they want to pay it.

Tax pooling lets businesses defer upcoming provisional tax payments to a time which suits them, without incurring late payment penalties and interest from the IRD.

When might this be useful?

A number of businesses will pay their second instalment of provisional tax for 2016 on 15th January – a payment which can be difficult for some given it coincides with a traditionally slow trading period following Christmas and New Year.

How does it work?

To defer an upcoming provisional tax payment, a business pays a tax pooling intermediary such as Tax management New Zealand (TMNZ) a one off, tax deductible finance fee. This fee is based on the amount of tax financed and the future date they wish to pay.

Gilligan and Company Limited

PO Box 9606
Auckland 1149

Level 5
393 Khyber Pass
Auckland 1023
New Zealand

Ph +64 9 522 7888
Fax +64 9 522 7893

Email This email address is being protected from spambots. You need JavaScript enabled to view it.

Client Login

Latest News

Plentiful Job Opportunities In 2018
Monday, 22 January 2018
“Skilled workers are in pole position and can expect pay increases in the coming year as businesses scramble to retain and recruit staff.” According to Robert...
IRD's Latest Unclaimed Money List
Thursday, 07 July 2016
This list names tax payers who are owed cash that has been left untouched for six or more years in companies such as financial institutions and insurance...
Local Auckland time is currently: Friday, 23rd March 2018 10:10:pm