How does Inland Revenue know we are using tax pooling?
Every month we send a schedule to IRD of all taxpayers who have either current deposits in the pool or a purchase arrangement in place for current periods. Following receipt of this schedule IRD flags these taxpayers as being tax pooling users.
Why does my client still receive statement of account letters from IRD when they have a tax pooling arrangement in place?
The tax pooling flags IRD puts on the taxpayer's account suppresses debt enforcement letters from being issued to your taxpayers. The flag does not stop IRD sending statements of account to show the taxpayer the balance that remains as outstanding with them.
However, a note does appear on the taxpayer's statement of account noting that IRD is aware an arrangement exists with a tax pool 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 be accepted for the period.