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How your firm's Advantage tier is determined

Understand how Advantage tiers are calculated, including taxpayer count, share of purchased funds and the role of your synced IR data connection.

Overview

Your Advantage tier is based on your firm’s tax purchases through Tax Traders.

Using your synced Inland Revenue data connection we measure:

  • The number of your clients who have purchased tax; and
  • The proportion of tax purchased through Tax Traders.

       We calculate your Advantage tier:

      • Quarterly using a rolling 12-month period (as at 31 March, 30 June, 30 September and 31 December); and
      • Based on your client list at the time of calculation.

          Our Inland Revenue data connection is complimentary and backed by our ISO27001 certification. You can read more here.  

          Your firm can join The Advantage without enabling or syncing their IR data connection. However, without an active and synced IR data connection, your firm’s use of Tax Traders cannot be accurately assessed and they will be limited to the Advantage Starter tier.

          This also applies if your firm has an enabled IR data connection without a daily sync activated.

          What we measure

          Your Advantage tier is determined using two measures.

          1. Number of taxpayers transacting

          This is the number of your clients on your firm’s client list that have transferred funds to Inland Revenue.  

          2. Share of purchased funds transferred to IR

          This reflects the proportion of tax your clients purchased through Tax Traders within the previous 12 months.  

          How we calculate this measure

          Total purchased funds ($) transferred to Inland Revenue through Tax Traders, divided by the total purchased funds ($) transferred to Inland Revenue from any tax pooling source for all taxpayers on your client list and multiplied by 100.  

          This calculation includes:
          • All purchased tax pooling funds transfers made to IR
          • Across all tax types and tax periods

          Using your firm’s synced IR data connection, any transfer of purchased funds we can’t match to the Tax Traders tax pool are treated as being acquired through another provider.  

          Tier thresholds

          Each measure is assessed separately against the thresholds below. Your firm’s tier is based on the lower of the two outcomes.  

          Advantage tier Share (%) of purchased fund transactions completed with Tax Traders   Minium number of taxpayers on your firm’s myIR client list transacting with Tax Traders  
          Advantage Starter N/A N/A
           Advantage +    75% to 84%   Three
           Advantage ++    85% to 94%   10
           Advantage +++    95% and above 20

          How this works in practice

          If your firm meets Advantage +++ for one measure but Advantage ++ for the other, your tier will be Advantage ++.

          If your firm meets Advantage ++ for one and Advantage + for the other, your tier will be Advantage +.

          To move up a tier, your firm needs to meet the thresholds for both measures.

          How to think about your tier

          Your firm's tier reflects two things:

          • Breadth – how many clients on your IR client list are acquiring purchased tax pooling funds to settle tax liabilities. 
          • Commitment – how much of those purchased funds are being acquired from the Tax Traders tax pool.

              Firms that reach higher tiers are typically:

              • Acquiring purchased funds across more of their client base; and

              • Consistently placing those purchase transactions with Tax Traders.

              Have any questions?

              If you have any questions or concerns about our methodology, please contact your Tax Traders Client Director or email team@taxtraders.co.nz.