Paying New Zealand Income Tax Is A Gamble
If you are in business in New Zealand you will know that paying provisional tax is a gamble. Inland Revenue requires you to pay tax assuming you will make 5% more than the previous year. Earn more or less than that and you lose.
If you pay more than $60,000 per annum in income tax in New Zealand and your taxable profit turns out to be more than 5% greater than the previous year you will incur additional Use of Money Interest on the difference. Even if you made every one of your provisional tax payments on time and of the right amount! And Inland Revenue will charge you in excess of 9% interest.
If you have a quieter year and your taxable profit turns out to be less than 5% more than the previous year, you will have overpaid your tax and will have to wait until you file your annual tax return and Inland Revenue gets around to refunding your overpayment. And if it was a quieter year, it was probably difficult to come up with that tax payment in the first place. And the last thing you want to do is to wait around for the tax return to be approved by Inland Revenue so you can get your money back.
They get the use of YOUR money and pay you just over 1% for it!
Let us help make your company tax in New Zealand stress-free. There is never a charge for a quick chat so contact us now on 1300 791 600.
Our IRD-Approved Facility Is Yours For The Asking
Along with New Zealand’s largest accounting firms, we use a unique IRD-approved facility where we make the most of the fact that some very large companies deliberately overpay their tax so they don’t incur those significant interest and penalty costs. After all, they can access funds at just a fraction of what IRD will charge them. So it makes sense for them to borrow cheaply and overpay the tax.
Through intermediaries and with Inland Revenue’s blessing, those companies offer to sell this overpaid tax to us to be credited to the tax accounts of our clients. After all, they will only get a little over 1% interest from Inland Revenue. They agree to sell their overpaid tax so our clients can meet all or part of their NZ income tax obligations.
But here’s the kicker.
Because they have already paid the tax to Inland Revenue, when they transfer the tax to your tax account, it is made retrospectively. In other words, we can backdate the payments removing the interest charges and late payment penalties you may have incurred.
Think for a moment what that means about the way you can run your business.
Instead of struggling to meet your provisional tax payments, you can invest that money in growing your business. We make it possible for you to do just that. Invest in your business and grow those profits.
Then, when the tax calculations are done for the end of the year we can simply calculate what you owe to Inland Revenue, borrow at rates that are currently less than 6% and backdate those payments against your provisional tax payment dates.
In fact, we suggest you only pay a minimal amount of provisional tax so that you are never in the position of overpaying.
We quote the entire cost to you upfront which covers our fee (billed separately) and the amount that will be paid in the arrangement. Your total cost is significantly less than what IRD charges and is probably less than your own bank financing costs.
And it stays off your balance sheet. In fact no one knows about it besides you, us and the intermediary we carefully select (with your approval).
And it’s all IRD-approved, government guaranteed and tax deductible.
Let Your Tax Payments Work For You In Your Business
Instead of locking your tax payments up with Inland Revenue, let it create wealth in your business. Or if a NZ Income Tax payment date falls on a quiet trading month, pay your tax when trading conditions improve. And the incredible thing is we can backdate your payments – sometimes by over a year!
Need Help With Past Tax Payments?
Missed a recent Income Tax payment? Instead of paying a fortune in financing costs and tying up your working capital along with incurring Inland Revenue’s late payment penalties and interest, simply let us know within 75 days of your terminal tax payment date and we will arrange to make payment and have it backdated into your account.
No IRD penalties. No IRD interest.
You will receive a statement from Inland Revenue showing a payment credited on the due date and any penalties and interest that had been charged by IRD as a result of late or no payment will be reversed.
No Forms, Fees, Financials Or Security Required
There are no monthly fees, credit reports, financial statements or any documentation required.
If you are a client at the time we arrange the facility, you qualify.
You just confirm the amount you want us to cover and when you will ultimately make the payment. That date would usually be after we complete your Income Tax return because you then only need to pay the actual tax outstanding. Nothing more.
We quote the tax-deductible total fee which is a fraction of what Inland Revenue will charge. Pay that fee and everything is then taken care of.
What's The Catch?
Well – there is none. The money is already with Inland Revenue so no one can run off with it.
Inland Revenue love the idea because they aren’t a finance company (although sometimes it might seem it). They get their bonuses on their tax collections, not the interest.
We transfer clients’ over-payments (Inland Revenue only pay them 1% pa for it) against our client’s who prefer to use that money growing their business and pursuing opportunities rather than paying the taxman.
The over-payers get compensated, the under-payers have their account credited with the right amount without any late payment penalties and only after they have their actual tax bill has been calculated.
Questions about New Zealand Tax?
Our New Zealand tax expert, Mike Reddy, is a New Zealand Chartered Accountant and New Zealand Registered Tax Agent based in Sydney. He works with individuals and small businesses throughout Australia to help take care of your New Zealand tax questions and tax returns from our Sydney office.
Having been preparing and filing New Zealand tax returns since 1994, Mike is the most experienced New Zealand tax agent in Australia. He is regularly engaged by Australian tax agents and accountants who have clients with New Zealand interests.
So when it comes to looking after your New Zealand affairs, Mike can definitely help you with the right advice.
Call us now on 1300 791 600. There is no charge for a quick chat so we can talk you through the issues.