Tax Pooling

Improve your cash flow with tax pooling.

What is tax pooling?

Tax pooling improves your cash flow by paying tax on your behalf to your taxpayer account at the Inland Revenue. This allows you to repay your tax bill when you choose to - and with no minimum deposits. So, if you want to make sure your business pays tax on time, and at the lowest cost (avoid exposure to underpayment penalties!), tax pooling is a fantastic option for you.

Take advantage of tax Pooling benefits.

Estimating your provisional tax is difficult.

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Improve your Cash Flow

Allow more flexibility with tax due dates, by borrowing from the tax pool at competitive rates - they're cheaper than borrowing from a bank. Treat your tax deposits as an overdraft facility: withdraw and finance your funds at competitive rates, any time.

Lower Underpayment Costs

Prevent costly interest payments and penalties from the Inland Revenue for (accidental!) underpayments of provisional tax. By buying the tax you need from the tax pool instead of paying the Inland Revenue directly, you can save up to 30% on your use of money interest (UOMI).

Avoid Overpayment Costs

Make sure your working capital isn't wasted by sitting at the Inland Revenue when you've made a tax overpayment. Get greater returns by selling excess tax to the tax pool for much more than the UOMI the Inland Revenue pay you for your tax overpayments.

How does tax pooling help you?

Michael, who owns two cafes in Auckland, knew that his business tax due date was quickly approaching but his business accounts were running low on funds. Michael chose to borrow from the tax pool at a competitively low interest rate, knowing that borrowing from the bank was going to be more expensive, and paying tax late meant he would have incurred expensive penalties.

Having just started her hair salon, Sarah was unsure if she had correctly estimated the provisional tax she needed to pay. Instead of paying the Inland Revenue directly, Sarah used a tax pooling agent to transfer the funds from the tax pool to her account at the Inland Revenue. Sarah had underestimated the tax she needed to pay, but by using the tax pool Sarah avoided underpayment penalties and was able to save nearly 30% on her UOMI.

David, who has owned a carpentry business for 20 years, overpaid his tax last financial year so last tax period he used a tax pool agent to pay his business tax. David avoided having his working capital tied up at the Inland Revenue for the remainder of the financial year. Instead, he was able to sell the excess tax he contributed to the tax pool for a much higher return than the UOMI he would have received from the Inland Revenue - meaning he was able to invest that capital into replacing worn-out tools.

Why Grow NZ tax pooling?

1. Competitive prices for tax pooling and finance solutions.

2. Backed by New Zealand leading professional tax advisors.

3. No minimum deposit, purchase, or finance amount.

4. Our online systems include excel reporting.

5. Payments into tax pool can be refunded at any time.

6. The trustee for the tax pool is Public Trust, owned by the New Zealand Government.

7. Free registration and no membership fees.