Selling overpaid tax

Selling overpaid tax is a win-win: you enjoy the benefit of a higher interest rate while helping out another taxpayer. In order to sell, the tax needs to already be in a tax pool account at IRD. Even if it’s in a different pool Tax Traders can still sell it for you. We regularly get approached by taxpayers looking for options or solutions that they haven't been able to find elsewhere. To find out more about this or to be put in touch with some of our growing list of references, please contact us.

Benefits

• Earn premium interest and credit use-of-money interest on deposits which are no longer required.
• Fast processing times.
• Competitive, flexible pricing.
• Public Trust ensures you receive the payment due.

Criteria

• AML documentation is required for sales in excess of $1,000 which are being paid directly to your client’s bank account.
• The AML documentation limit applies across sell transactions for the calendar year. For example, if the client initiates a sale of $800 in January then requests a further sale of $300 in August they will be subject to AML requirements.
• Tax Traders use online verification tools for AML compliance to minimise disruption for you and your clients.

Steps

1. Once you’re logged in, use your taxpayer drop down to select your taxpayer.
2. Select Manage Tax and the Sell option.
3. Select the deposit you wish to sell and enter in either the amount of the deposit to be sold or tick the Sell All box.
4. Select the Sale Date. This is the processing date and the date up to which interest will be calculated. By default our next available processing date (Friday of each week) will show or you can change this using the drop down to be a future processing date.
5. Click Calculate to obtain a sell estimate. This will be presented on the page, but you can also Print, Email or Save the estimate.
6. Select your payment instruction from the drop-down box below your sell estimate. There are several options:
   1. • Pay to bank account: This option will sell your clients deposit and refund to their bank account entered as their refund preference under their taxpayer settings.
      • Redeposit to the tax pool account: This option allows for older deposits to be sold and returned to the tax pool as a new deposit, with interest either being redeposited or paid out to your client.
      • Pay to IRD: This option sells the deposit and transfers the total achieved through to IRD into a future period so a refund may be obtained directly from IR.
7. If the sell amount exceeds $1,000 and the Pay to Bank Account refund preference is selected, the system will prompt you for AML documentation. The team will reach out with what they will need from you. Your sell can still be submitted, but you will need to acknowledge by ticking the AML Forms Required box that the sell will not proceed until satisfactorily completed documentation is received and reviewed.