Tax pooling is a system that we will start using this year for many of our Clients
What is Tax Pooling and how does it work?
Tax pooling is a progressive approach to provisional tax management. The tax pooling system is based on taxpayers who pay provisional tax into a ‘pool’ at Inland Revenue.
Once taxpayers know exactly what they need to pay in provisional tax, they transfer this out of the pool to their Inland Revenue account and sell any surplus to someone else (typically for a fee greater than the Inland Revenue credit interest rate they would otherwise receive.