Tax financing

It works like this:

  • Set your tax payments and dates
    You tell us how much tax you need to pay, the payment date and when you would rather make your tax payment.
  • Tax pool
    In return for a competitive one-off finance fee we pay your tax for you. Your tax payment is held in the TPS tax pool at the Inland Revenue.
  • Better use of your funds
    Instead of paying tax, you use the funds to grow your business or repay expensive bank facilities.
  • Only pay the amount you require
    You pay us the amount of tax that you need at the end of the agreed term. You only need to repay the amount that you require, not necessarily the full financed amount.
  • We take care of payments
    We transfer your tax payment from the TPS tax pool to your taxpayer account at the Inland Revenue.

Why use tax financing and TPS

  • Reduce your borrowing costs. In most cases, the interest rate charged by TPS is significantly lower than that charged under business banking facilities.
  • Free up cash flow.Provides you with an alternative means of financing.
  • Defer settling your tax to when it suits you.Is your cash flow lumpy or seasonal? TPS lets you settle your tax when you want. If you don’t quite get the timing right, roll the finance – only paying interest to the next maturity.
  • Sell over-financed amounts.If you finance more than you need then we sell the excess and transfer a cash interest return to you without needing to settle the excess principal amount.
  • Public Trust protects your interestsBy holding all payments and tax deposits and authorising all transfers.

With TPS there are no up-front registration costs, monthly charges or application fees and no security or credit checks are required. We finance you right out to your terminal tax date and there is no need to roll over mid-term.

How does tax financing work?

  • Register online
    First, you or your tax practitioner need to register you with TPS. Our online system will send you or your practitioner login details that will enable your account with TPS.
  • Tax finance request
    Once you are registered you can submit a tax finance request prior to the date of your next provisional tax payment is due. You pay a finance fee (based on TPS’ competitive interest rates) and TPS arranges for the amount you have financed to be deposited into the TPS tax pool on your provisional tax payment date. This deposit is held in the pool for you until the maturity date of your loan.
  • Repay provisional tax as you need
    TPS contacts you prior to the maturity date and asks you how much of the tax deposit you require. If you have overestimated your tax payment you do not have to repay the whole loan. You just repay the amount of provisional tax as you need.
  • We transfer to your taxpayer account
    On the maturity date, you pay the face value of the tax deposit you require into Public Trust’s trust account and the tax deposit is transferred to your taxpayer account at the Inland Revenue.
  •  Avoid UOMI and other penalties
    The date of the tax deposit transferred into your taxpayer account is the date that it was paid into the tax pooling account rather than the date of the transfer. This means that you satisfy your obligation to pay your tax on your provisional tax date and do not have to pay the Inland Revenue any use of money interest or other penalties.

Contact our team if you have any questions.

TPS’ Services

  • Tax Deposit
    Deposit your provisional tax payments into the TPS tax pool and increase your return on overpayments.
  • Tax Purchase
    Save up to 30% in use of money interest costs and avoid late payment penalties by buying the tax you need from the TPS tax pool.
  • Tax Swap
    Increase your return / reduce interest costs by swapping excess tax payments made into any tax pool for tax on the date you require.
  • Tax Finance
    Finance provisional tax payments at very competitive rates for up to 21 months. No application fees, no credit checks, no security required.
  • Defer payments
    Reduce your interest costs by purchasing back dated tax now, but deferring payment until a future date at a lower finance rate.
  • Historic Deposit Finance
    Holding a deposit in the TPS tax pool? Treat it as a pre-approved overdraft facility – the funds can be withdrawn and financed at competitive rates at any time.