Tax due in April and again in May… A bridge too far?

IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.

Some of you have a terminal tax bill due 7 April 2013. If you have IRD interest on these payments, you can pay a lower interest rate through Tax Management NZ.
Then I insist you pay again on 7 May 2013 for provisional tax. This could well be ‘a bridge too far and your cash flow just can’t take it.
We have found a very easy and risk-free funding option that is only for provisional tax and the IRD has approved it. It is called Tax Finance.

By using Tax Finance (see table below) you decide when you want to pay your tax (maximum delay of 10 months for 7 May). The tax intermediary arranges your payment into their tax pool which is a special account with the IRD. All you have to do is pay the interest cost upfront. Then there’s nothing to pay until your selected maturity date. You can even use this as a form of installment such as arranging tax finance for 6 months and then paying 1/6th to Guardian Trust tax pool each month. You won’t get any late payment penalties or IRD interest.
We suggest using Tax Management NZ as your tax intermediary. They have the greatest experience in tax pooling and they guarantee the availability of the funds for both tax purchase and tax finance.

Tax finance for 7 May 2013
The finance rates are subject to change

Give us a call or you can deal with them directly for your tax assessment . Simply register as a business and then enter the finance request. Please include our details with your registration.Payment of interest due by 3 May 2013