Deadline for 2023 tax transfers to IRD
19 June 2024 is the last tax purchase date to buy 2023 financial year tax for provisional taxpayers with a valid extension of time (EoT) and a balance date between 31 March and 30 September. This will ensure funds are transferred to IRD before the tax pooling cut-off date.
Transfers of purchased and financed tax for 31 March to 30 September balance date clients with a valid EoT must be made before 24 June 2024.
The next provisional tax date is 28 May 2024.
Provisional taxpayers with the below balance dates may have a tax instalment due on 28 May 2024:
- Taxpayers with a 31 December balance date will generally have their first provisional tax instalment due for the 2025 tax year.
- Taxpayers with a 31 August balance date will generally have their second provisional tax instalment due for the 2024 tax year.
- Taxpayers with a 30 April balance date will generally have their third provisional tax instalment due for the 2024 tax year.
May case study
We were recently approached by a taxpayer with unresolved income tax accounts for the 2022 and 2023 periods, and IRD Use of Money Interest and Late Payment Penalties charges totalling $72,500. Working to a tight deadline and several limitations, our Tax Pooling Solutions team was able to work with the client to clear the balances owing, resulting in a great outcome for them.
When the Tax Pooling Solutions team was approached, it was less than two weeks before the client’s 2023 deadline to be able to use tax pooling for purchasing backdated tax credits (because the client had no extension of time).
The client had made several payments directly to IRD at various dates, all into the INC 2023 period. These payments were able to be transferred back to cover the 2022 tax liability in full. The payments were made before the 2022 terminal tax date, which meant debit Use of Money Interest was significantly reduced and all late payment penalties that had been incurred were eliminated for the 2022 year.
The client was able to purchase the outstanding 2023 provisional tax from the Tax Pooling Solutions pool, eliminating all debit Use of Money Interest that was accruing and all late payment penalties in the 2023 year.
The net savings to this one client was approximately $30,000.
If you have a similar scenario or any questions about how Tax Pooling Solutions can help you, please get in touch.
Other important dates for your calendar
Provisional taxpayers with a 31 January, 31 May, or 30 September balance date will generally have a tax instalment due on 1 July 2024.
Now is a great time to get in touch with us to discuss financing options for this instalment.
