Finance for your provisional tax payments
Posted by: Peter Tolan - Director
Date: 03 May 2012
Here's how it works. You have a provisional tax payment due on 7 May, but it suits your business cash flow better to pay it 6 months later.
- The tax payment intermediary will arrange payment of this provisional tax instalment on the due date on your behalf, with a one-off finance fee for an agreed term (anywhere from 3 - 12 months).
- The finance fee is deductible
- You pay the tax at the end of the finance term
- The original provisional tax instalment date (7 May) will be recorded against this transfer.
- Any interest or penalties levied on your account will be reversed at this point.
Tax Management NZ is New Zealand's original tax payment intermediary approved by Inland Revenue, allowing taxpayers to manage provisional tax and reduce their exposure to use-of-money interest.
TvA has worked for many years with Tax Management NZ and we recommend them to our clients.