Manage your IRD interest exposure by depositing into the Tax Pool
When you become a depositor (corporate member) into the Guardian Trust Tax
Management NZ (TMNZ) Tax Pool, instead of making your provisional tax payments direct to
the IRD, your payment is paid into a Westpac Trust account administered by Guardian Trust.
Guardian Trust clears this trust account and deposits the funds with the IRD under the IRD
account number of the Guardian Trust/TMNZ Tax Pool account. Guardian Trust notes this
deposit as an entry in their Tax Pool register which records that the deposit belongs to you.
When your accountant finalises your tax position, you or your accountant notify TMNZ of
your actual tax liability. TMNZ then advises Guardian Trust who directs the IRD to transfer
your deposit from the Guardian Trust/TMNZ Tax Pool IRD account to your IRD account to
meet your tax liability.
The benefits of depositing tax into the tax pool include –
The ability to sell your surplus tax at a premium (currently 4.25% compared to the
IRD rate of 1.75%)
Ability to purchase tax shortfalls at the corporate rate (currently 5.58% compared to
the IRD rate of 8.40%)
Faster refunds – TMNZ can refund any provisional tax payment within 3 to 4 days.
The ability to look for swaps between other taxpayers within the Tax Pool to smooth
your provisional payment profile. This further reduces your interest exposure.
The ability to make one payment for a group of entities.
Key points
At no stage does TMNZ have any contact with, or access to, your tax payments.
The New Zealand Guardian Trust Company Ltd is the custodial trustee for the TMNZ
operation. You can view/access your account via the TMNZ website any time.
All payments made into the Tax Pool will be held on trust by Guardian Trust. You are
not exposed to any credit risk with Guardian Trust or TMNZ. At any time you can
request that any amounts held on trust are refunded or transferred to your IRD
account at IRD.
For further information regarding the ownership of the funds placed in the Tax Pool,
a legal opinion from Mayne Wetherall is available on request.
Guardian Trust is one of New Zealand’s leading trustee companies with over $71
billion under trustee management. TMNZ is the management company for the Tax
Pool operation.
Call us now 0800 829 888
or visit our website www.tmnz.co.nz
Once the transfer happens, the IRD issues a statement reflecting the deposits at
their original deposit dates.
TMNZ was the first approved tax intermediary and pioneered Tax Pooling in 2003.
We have over 10 years of experience in understanding the market, the demand
patterns and giving advice on buying and selling strategies to add the best value for
our customers.
Companies that are already members of the TMNZ Tax Pool include: State Owned
Enterprises and other Crown entities including the New Zealand Super Fund, Mighty
River Power, New Zealand Post, Meridian Power; all the major trading banks; major
New Zealand fund managers, and many of the top 200 companies in New Zealand.
Specific references can be provided on request.
Frequently Asked Questions
Is TMNZ approved by the IRD? - TMNZ is listed on the IRD’s website and we were the
first Tax Pooling intermediary to be approved by them. The Guardian Trust TMNZ Tax
Pool Account was established in April 2003 and is operated under the Income Tax
Act 2007.
How do I know my payments will be secure? - Custodial trustee services for the
TMNZ Tax Pool are provided by The New Zealand Guardian Trust Company Limited
(Guardian Trust). With origins dating back to 1882, Guardian Trust is a leading
trustee, financial adviser and asset manager. Guardian Trust holds all payments on
trust for members, authorises all payments, and authorises all transfers to taxpayer
accounts at the IRD.
Are there any establishment fees or other charges? - No
How can I check my provisional tax balances within the Tax Pool? – Every time you
make a payment into the pool you will be provided with a statement from Guardian
Trust. Balances can be viewed any time through your personal login in the TMNZ
system.
If I make a payment into the Tax Pool am I able to access these funds again if
required? – Any payment you have made into the Tax Pool can be refunded within 3
to 4 workings days.
Call us now 0800 829 888
or visit our website www.tmnz.co.nz