Financing tax FAQs

How much does tax finance cost?

Because tax finance is effectively purchasing tax in advance, we think this should be done for your client at a discount and not a premium. We aim to ensure tax financing with us is always cheaper than purchasing tax. Please use the Finance Calculator on your Tax Traders account or select ‘interest upfront’ in the payment options to calculate the specific rate.

Can my client put a tax finance arrangement in place if the provisional tax date has passed?

Yes. This can be done online through your Tax Traders account.

How long does it take Tax Traders to confirm a request for tax finance?

Requests for tax finance are confirmed immediately.

Does Tax Traders have any minimum limits on how much tax can be financed or a minimum length of time?

No, we do not have any minimum limits on amount or term.

How long can my client defer paying their tax with tax finance?

At the end of the finance period, the maturity date for any tax payments can be extended for a further period if required, provided that the maturity date selected is not more than 75 days after the terminal tax date for the income year your client is financing. In practice, this means some payments can be deferred for as long as 22 months. An additional finance fee will be raised to cover the extension required.

Does my client have to pay for the entire amount financed at the end of the finance period?

No. With tax finance, your client is securing a guaranteed entitlement to tax but without any obligation to ultimately take it up. If your client realises by the end of the finance period that they no longer need that much tax, they only have to pay for what they need.

Can my client finance non-income tax types?

No. Tax financing is only for income tax.

Can my client pay their tax finance principal off in instalments?

Yes, your client can pay the principal off in instalments that suit them prior to the maturity date. This can be selected at the payment options stage when placing an order.

My taxpayer has a finance arrangement but the funds aren't showing on their IR account. When will the funds show up?
If your client has set up a finance arrangement with an interest upfront payment option, their core tax payment will be delayed to a selected maturity date in the future within the allowable tax pooling window (75 days after their terminal date). The interest payment made to Tax Traders enables funds to be reserved in the pool for their future use.

IRD will be notified the client has an arrangement in place, and will flag the taxpayers account as being a tax pooling user, but no funds will be transferred to their IRD account until the core tax is settled at the maturity date selected.

I have a finance arrangement in place for my taxpayer but we have finalised their return and this is no longer required. Can I cancel this myself on the portal?
No. Once a finance fee is paid and an arrangement is put in place this can no longer be cancelled on the portal. You can contact team@taxtraders.co.nz to arrange the expiry of the arrangement.