When you set up a tax pooling arrangement with us, we take care of notifying Inland Revenue (IR).
Every month we send a schedule to IR of all taxpayers who either have current deposits in the pool, or a purchase arrangement in place for current periods.
Following receipt of this schedule, IR flags these taxpayers as being tax pooling users.
Why does my client still receive statement of account letters from IR when they have a tax pooling arrangement in place?
IR flags a taxpayer's account to prevent debt enforcement letters from being issued to the taxpayer. The flag does not stop IR sending statements of account to the taxpayer showing them the outstanding balance.
However, a note does appear on the taxpayer's statement of account noting that IR is aware an arrangement exists with a tax pooling provider for the period.
This means the taxpayer has up to 75 days following their terminal tax date to complete transfers from the tax pool to satisfy their liability.