If you have paid too much tax into the tax pool, you can sell this for an interest return
If too much tax is paid into your tax-pool, this can be sold and used in one of the way as below:
- Pay to bank account: money is refunded to your nominated bank account. Note that an AML check will be required for any amount of $1,000.
- Pay to IRD: this will result in a cash payment to a specific tax liability. Essentially, this is a cash payment and can be made against any tax type/period with liability.
- Redeposit to tax pool account: this results in a new deposit in the tax pool account at the date of processing selected during the sell process.
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.
- If making payment direct to IRD, we will need evidence of the liability this payment will clear.