Frequently Asked Questions
- We do not charge an annual membership fee, a monthly account or an establishment or registration fee.
- We accept all deposits – there is no minimum threshold – allowing everyone to take advantage of the benefits of tax pooling.
- You can easily check your balance in the tax pooling account online.
- We provide tax purchases and financing at competitive rates.
- No credit checks or security required for tax financing.
- Due to our large client base of taxpayers, we are well placed to sell your overpayments of tax to clients who have underpaid their tax during the year.
- We have multiple process dates during a month.
- TPS’ trustee, Public Trust, is owned by the Government so you can be sure that your tax payments are being held by a secure and trustworthy entity.
- As a registered TPS user, you can access multiple reports from our system at a detailed transaction level which export into Microsoft Excel. These are very helpful for preparing your imputation credit account entries.
We have appointed Public Trust as trustee to oversee all client funds and tax deposits. Public Trust is a leading trustee, financial adviser and asset manager. It is owned by the Government. We took this into account when selecting a trustee. Protection of our clients’ funds is extremely important to us and we were not comfortable appointing privately owned trustee companies where credit issues may impact performance.
Public Trust has established specially designated trust accounts to receive all amounts received from, or to be paid to, TPS clients. Clients never make any payments directly to TPS and TPS never handles client funds. Public Trust is also responsible for operating the TPS tax pooling account at the Inland Revenue and is the only entity authorised to make deposits into, and transfers from, the trust accounts and the TPS tax pooling account. TPS has no rights to withdraw funds from these accounts.
Public Trust’s role includes:
- Establishing and operating trust accounts to receive all amounts received from and paid to TPS clients.
- Holding and operating the TPS tax pooling account at Inland Revenue.
- Holding all payments and tax deposits on trust for TPS clients.
- Authorising all payments and transfers of client funds to and from the trust accounts.
- Authorising all transfers from the TPS tax pooling account to taxpayer accounts at Inland Revenue.
- Ensuring that all client information and balances are correctly recorded in TPS’ system.
We have prepared a document called “FAQs on Structure and Security”* which answers more detailed questions on this subject. Feel free to drop us a line and we will send this to you.
Under the Income Tax Act, all deposits we receive from you into the TPS tax pooling account must be held by Public Trust on your behalf until they are transferred to a taxpayer account at Inland Revenue, refunded to you or transferred to another pooling account. Transfers and refunds of your tax deposits will only be made on your instruction.
Our secure online application will provide you with a statement of the tax balances that you hold in the TPS tax pooling account at any point in time. If you have any concerns about the balances showing in your online statement, please contact us. If you would like independent confirmation of the amounts and effective dates of the tax deposits that are being held on your behalf, we can provide you with the contact details of the relevant person at Public Trust who can provide you with this confirmation.
Yes, TPS is an Inland Revenue approved tax pooling intermediary. TPS listed as an approved intermediary on the Inland Revenue’s website.
It’s simple. We require no financial information, security or guarantees. All you need to do is register as a TPS client and provide details such as your Inland Revenue number, contact details and balance date. Our website will send you a login and temporary password. Once you have logged in you will have all that you need to deposit, buy, sell or finance tax.
No. You will not pay a cent unless you use our services to buy or finance tax. We will tell you exactly how much you need to pay, or should expect to receive in the case of a sale, before you commit to a buy, sell or finance transaction so there are no nasty surprises.
If you deposit into the TPS tax pooling account and have no need to buy, sell or finance tax then we transfer your balances to your account at the Inland Revenue without you having incurred any costs.
Making a deposit into the TPS tax pooling account does not, in itself, satisfy your obligation to pay the tax you owe to the Inland Revenue. It is not until you transfer the tax deposit from the tax pooling account to your individual taxpayer account at the Inland Revenue that your payment obligations are satisfied and the Inland Revenue considers the tax to be paid.
Unfortunately, this means that, even though you have paid your tax into the TPS tax pooling account held at the Inland Revenue, the Inland Revenue may still send you reminder letters before each payment date and your Inland Revenue statements will show the show payments as “overdue” (because the payment is not yet in your taxpayer account). Do not be concerned. The Inland Revenue will not charge any late payment penalties or UOMI or send any letters requesting payment until an income tax assessment has been raised. The Inland Revenue has advised that they cannot suppress these standard letters and that they can be disregarded.
See the Inland Revenue website about tax pooling for more information.
Yes, if your business is audited by PwC, you can still use TPS. Please discuss with your accountant whether any additional financial statement disclosure is required.
Yes, if your business is audited by PwC, you can still use TPS. The range of services provided by TPS have been approved by the Office of the Auditor General to be provided to taxpayers that are subject to audit by PwC on behalf of the Office of the Auditor General. Please discuss with your accountant whether any additional financial statement disclosure is required.
TPS is able to confirm most requests almost immediately.
In most cases, yes. So long as you purchase the tax you need and transfer it to your taxpayer account within 75 days of your terminal tax date, we can eliminate all late payment penalties.
When you have completed your tax return and know how your residual income tax for the financial year you can:
- Give us a call;
- Email us; or
- Request a transfer of your tax in the pool to your Inland Revenue account through our online system
then Public Trust will instruct the Inland Revenue to transfer your tax deposits from the pool into your taxpayer account at the Inland Revenue. If you have underpaid or overpaid your provisional tax, we can also help you sell your overpayment at a profit or buy additional tax.
Transfers are usually completed by the Inland Revenue within two weeks of payment of the purchase price. Transfers of tax deposits will be shown on your online statement of tax balances.
Yes. A New Zealand taxpayer should be able to deduct all fees and interest paid to TPS for New Zealand tax purposes. If you use our service to buy tax or finance tax, then the interest is deductible upon the tax amount being transferred to the taxpayer’s tax account with Inland Revenue.
Tax finance is a quick and simple way of accessing finance for your business at competitive rates. The benefits of tax financing include:
- Reduce your borrowing costs – Our tax finance rates are very competitive. TPS’ finance fees are often significantly lower than the interest rates charged under business banking facilities.
- Time your tax payment dates to suit your cashflow – If you finance your tax payment, TPS will pay tax into the tax pooling account on the scheduled payment date and hold it for you until the finance term matures and you have the funds to pay for it.
- Free up existing facilities – Tax finance provides you with an alternative means of financing, expanding your available credit.
- No application fees, security or credit checks – Tax finance is available quickly and easily.
- Public Trust protects your interests – Public Trust handles all payments and tax deposits and is the only party authorised to make transfers.
- Flexibility of use of capital – Once you have financed a certain amount you only have to repay the amount of tax you actually need. So you don’t have working capital tied up at the Inland Revenue waiting for a refund.
Tax finance is particularly attractive to businesses:
- That currently pay interest of more than 6% under their bank facilities.
- Require an additional source of financing.
- Have seasonal cashflows.
TPS is able to respond to most requests almost immediately.
We can tailor the term of a tax finance transaction to suit your business needs. The TPS tax finance calculator only shows terms of 1-21 months but, if you contact us, we’ll probably be able to offer you a customised term. However, you must ensure that the maturity date of the tax finance transaction is no later than:
- 60 days after your terminal tax date, if the tax that you are financing is provisional tax or terminal tax.
- 60 days after the date on which the Commissioner of the Inland Revenue issues the notice of assessment increasing the amount of tax payable, if you are financing an increased amount of tax following an assessment, determination or voluntary disclosure.
- 60 days after the date on which the court proceedings are finally determined, if the tax you are financing is deferrable tax.
No. When you enter into a tax finance transaction with TPS you are buying the right to purchase a tax deposit equal to the Finance Amount on the Maturity Date but you have no obligation to do so. You can decide whether you purchase all, part or none of the tax deposit that you have financed. We will contact you close to the Maturity Date to ask whether you want to purchase the financed tax deposit. If you confirm to us that you want to purchase all or part of it, you will then have an obligation to pay for the amount you have specified.
Yes. Provided that you meet the other criteria, then any payments made through TPS, either by tax finance or with a tax purchase, would be treated as if they were paid to the Inland Revenue directly and you would qualify for the early payment discount.
TPS is a ring fenced operation within PwC.
Client information obtained by TPS is separated and ring fenced from other PwC systems and has restricted access. This means that PwC partners and staff outside the TPS team cannot access TPS client information unless they are the appointed tax agent or practitioner of the relevant client.
To have a tax deposit (including any tax you may have purchased or financed and settled) refunded out of the tax pool you can email our team and request the amount you want refunded.
Due to the Anti Money Laundering and Counter Terrorism Financing Act, we are required to undertake customer due diligence on clients who want to refund of withdraw money from the tax pool. These requirements apply to all tax pools. Therefore, we will require certain information from the taxpayer client and certain directors, shareholders, trustees, beneficiaries or the tax agent/practitioner. Our team will let you know what information is required before a refund can be issued.