Tax pooling

Tax pooling allows New Zealand taxpayers to pool their provisional tax payments together in an account held by a registered tax pooling intermediary at Inland Revenue (IRD) so that underpayments by some can be offset by overpayments of others. Taxpayers receive/pay an interest rate that is higher/lower than IRD's rates if they overpay/underpay provisional tax.^[1][2] Intermediaries operate under legislation set out in the Income Tax Act 2007 and Tax Administration Act 1994.^[3][4]

Tax pooling has been operating in New Zealand since 2003 after legislation was passed by the New Zealand Government.^[5][6] Tax Management NZ (TMNZ) was the first intermediary to offer the service.^[7][8]

Accountants across New Zealand recommend the use of tax pooling to taxpayers to manage income tax obligations.^{[9][10][11][12][13][14][15][16]}