While many New Zealanders are eagerly awaiting their tax refund from IRD, some Kiwis who are undertaking end-of-year filing requirements are left with no money to pay their tax. While this is a concern for many across the country, it has once again highlighted tax pooling as a possible solution.
For many, tax is often a simple process and decision. They’re aware of the need to pay their tax and then simply move on to the next financial year. Issues arise, however, around provisional tax suiting both the needs of the individual and the requirements of the individual. Undeniably, risks occur when tax isn’t paid, while falling into overdraft or reducing business expenditure can limit growth or cause forced redundancy.
This is where tax pooling presents itself as a simple solution. Tax pooling involves engaging an intermediary agency - such as a tax debt management firm - who will then pay tax on your behalf from their own funds at a modest rate of interest. Often, the resultant figure will be less than the interest rates offered through bank loans, and will remove the woes of risking charged penalty interest by the IRD.
If you’re interested in tax pooling as a solution to end-of-year tax issues, Tax Debt Management is a specialist tax negotiation and settlement service, with central office locations in both Wellington and Auckland, New Zealand.
As trusted experts in providing solutions to any tax debt problem, the team can advise on tax issues faced by New Zealanders throughout the year, including those who have underpaid tax and are concerned about taking out a loan or risking IRD penalties.
No matter your situation, if you’re experiencing tax debt problems and need assistance with tax debt management, speak to the team at Tax Debt Management today by calling 0800 829 277, or visit www.taxdebtmanagement.co.nz for more information on managing your tax debt.