Tax pooling changes positive for business

Tax pooling changes positive for business

Thursday 3 July 2014

Chartered Accountants Australia and New Zealand welcomes the announcement by the Minister of Revenue of changes to make the tax pooling rules more user friendly.

“The decision to allow taxpayers to use tax pooling funds to cover interest accruing on tax debt is good news for businesses,” says Peter Vial, Tax New Zealand leader, Chartered Accountants Australia and New Zealand.

Interest can be a significant and ongoing cost. The proposed change will allow businesses to manage that cost more effectively and gives them more certainty about their payment obligations.

The tax pooling rules allow businesses to pool their tax payments with other businesses via tax pooling intermediaries. The rules assist both taxpayers who have overpaid tax and those who have underpaid their tax.

ENDS

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