New App Tames Tax Pain

New App Tames Tax Pain

Paying your provisional tax is now easier than ever with the new Pay My Tax app from the tax innovators, Tax Management New Zealand (TMNZ).

Provisional tax can be a headache for taxpayers because it’s often difficult to predict what your final payment will be – especially for those who work in volatile markets or seasonal industries – like retailing or real estate.

If you don’t pay on time, the IRD charges high interest costs and late payment penalties. With the Pay My Tax app, taxpayers can shift the payment dates for their provisional tax to a time that better suits their business - and avoid paying IRD’s interest or penalties. By leaving cash in the business for as long as possible, they can pay for the things they really need to do. When people use the app, they can even pay the cost of financing their tax by credit card.

The Pay My Tax app also helps avoid the high cost of borrowing to pay for provisional tax. The cost of using the Pay My Tax facility is low. Available from 5.4%, it’s less than the cost of a traditional business overdraft facility - and it’s tax deductible.

Chris Cunniffe, CEO of TMNZ says the Pay My Tax facility is the ideal arrangement for an app. “TMNZ is registered with the IRD and will make the tax payment to IRD for the customer. So there’s no need to do any credit checks or have face-to-face discussions with customers. With the increasing demand from customers for self-service, the app was the obvious way to go.”

The new app is available for both Android smartphones and iPhones (ed – and can be downloaded from August 12). TMNZ will extend its innovative Pay My Tax self-service channel over the next few months....To find out more about this innovative service, go to paymytax.co.nz

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