Provisional taxpayers with the below balance dates may have a tax instalment due on 28 March 2024:
- Taxpayers with a 31 October balance date will generally have their first provisional tax instalment due for the 2025 tax year.
- Taxpayers with a 30 June balance date will generally have their second provisional tax instalment due for the 2024 tax year.
- Taxpayers with a 28 February balance date will generally have their third provisional tax instalment due for the 2024 tax year.
Provisional taxpayers with no valid extension of time (EOT) and a 31 March 2023 - 30 September 2023 balance date
17 April 2024 is the last tax purchase date to buy 2022/2023 financial year tax for provisional taxpayers without a valid extension of time (EOT) and a balance date between 31 March 2023 and 30 September 2023, in order for funds to be transferred to IRD before the tax pooling cut-off date.
Upcoming update to the Tax Pooling Solutions website
We’ve been working on improving the organisations and client lists on the Tax Pooling Solutions website and are excited to announce that we are in the final stages of testing and will be rolling out these improvements soon!
Within the next few weeks we will send out a separate email introducing you to the new ‘Organisations’ page of our website, which will make managing your client lists, notification settings, client security, and practitioner access easier than ever before.
If you have any questions or comments about these changes, please reach out to the Tax Pooling Solutions team.
Webinar recording - Using tax pooling to structure your provisional tax plan for the proposed 39% tax trust rate
Thank you to everyone who attended the live webinar earlier this month to discuss what the proposed 39% trustee tax rate from 1 April 2024 means for your clients who are considering declaring dividends this financial year by 31 March 2024.
The webinar covered:
- Refresher on how tax pooling transactions affect your ICA
- Imputing dividends and paying DWT
- TPS opportunities with FY24 provisional tax and FY23 terminal tax
If you were unable to attend the live session but would still like to watch this, please get in touch with the Tax Pooling Solutions team to request a recording of the session.
Introducing Tax Drawdown
We sent out an email recently introducing you to Tax Drawdown, an existing service that we have provided for clients in the past, particularly in the first COVID lockdown in March 2020 which helped New Zealand businesses get financial flexibility when they needed it most. With the end of the financial year approaching, and many businesses looking at means to access cash in the short term as well as innovative ways to reduce their overall cost of funding, we felt it would be a great time to share some information about Tax Drawdown in our Provisional Tax Reminder too.
Tax Financing with TPS has always been a popular solution for managing provisional tax obligations as you can defer payment for up to 21 months without needing any security. The ability to sell your tax overpayment to obtain a tax refund from TPS before filing that year's tax return is another well known benefit of tax pooling.
We wanted to remind you about the ability to access your TPS tax deposits in a way that acts like an overdraft. With Tax Drawdown you can effectively ‘borrow’ your tax from the pool and pay it back later without losing the effective dates on the tax that you already have. This works because you have up to 75 days after the terminal tax date to transfer the tax from the tax pool to your client’s income tax account.
You will pay the same interest rate as our regular finance arrangements, which is approximately 30% less than the current IRD rate on underpaid tax of 10.91%. This is calculated from the day that your client receives the funds until the day that the funds are repaid. Just like all of our tax purchasing and financing services, the only cost is the interest and there are no other fees. The interest cost is also tax deductible.
Get in touch with the Tax Pooling Solutions team to find out more.
Other important dates
29 March 2024
- Funds for the 2022/2023 financial year must be transferred out of the pool and to IRD before this date for provisional taxpayers with a:
- 31 December balance date and a valid extension of time;
- 28 February balance date without a valid extension of time.
8 April 2024
- 2022/2023 financial year terminal tax date for provisional taxpayers with a valid extension of time and a balance date between 31 March and 30 September.
17 April 2024
- This is the last tax purchase date to buy 2022/2023 financial year tax for provisional taxpayers without a valid extension of time and a balance date between 31 March and 30 September.
22 April 2024
- Funds for the 2022/2023 financial year must be transferred out of the pool and to IRD before this date for provisional taxpayers without a valid extension of time and a balance date between 31 March and 30 September.
