REDUCE THE COST OF UNDERPAID 2017 TERMINAL TAX (March 14, 2018)
Here’s an IRD-approved service for those with terminal tax due on 7 April might find useful.
Tax Management NZ (TMNZ) is a payment intermediary than can reduce any IRD interest on underpaid/missed 2017 income tax payments by up to 30 percent and eliminate late payment penalties.
They also let you pay what you owe in one lump sum (at a time that suits you) or via instalments over a longer period, provided you settle your provisional or terminal tax obligations no later than 75 days past your terminal tax date (see below).
You don’t have to worry about incurring IRD late payment penalties during any payment arrangement you have with TMNZ.
So, while Interface Financial Group can free up money by purchasing one (or more) on your current unpaid invoices should you need it to meet your terminal tax obligations, TMNZ is able to reduce the compliance costs or provide additional time to pay.
How long do I have to pay my 2017 income tax with TMNZ?
Those with a 7 April terminal tax date have until mid-June to settle what they owe. If you have a 7 February terminal tax date, you have until mid-April.
TMNZ is an IRD-registered tax pooling intermediary which operates under legislation set out in the Income Tax Act 2007 and Tax Administration Act 1994. The bank account into which you make your payments is overseen by an independent trustee. At no stage does TMNZ have access to your money. Talk with your accountant or visit www.tmnz.co.nz for more information.