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Income Tax Act 2007

General collection rules - Intermediaries - PAYE intermediaries’ responsibilities

RP 19: Transfers from tax pooling accounts

You could also call this:

“How to move money from tax pooling accounts to tax accounts”

If you’re a tax pooling intermediary, you can ask the Commissioner to move money from your tax pooling account to your client’s tax account or to another intermediary’s account.

When money is moved to someone’s tax account for provisional tax or terminal tax, it’s treated differently depending on when it’s credited:

If it’s credited on or before the final instalment date for a tax year, it’s treated as income tax paid for provisional tax.

If it’s credited after the final instalment date, it’s first used to pay any interest the person owes, and then it’s treated as income tax paid for provisional tax.

You can ask the Commissioner to credit the money on the date it was put into the tax pooling account or on a later date.

The date the money is credited to a person’s tax account depends on different factors, like when the application was made and what type of transfer it is.

When you transfer money, you need to tell the Commissioner electronically about the transfer date, credit date (if different), the amount, and the tax file number of the person it’s for.

After a transfer, the Commissioner will give you and the person who received the money a statement showing what the transfer did.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520541.

Topics:
Money and consumer rights > Taxes
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RP 18: Deposits in tax pooling accounts, or

“How tax pooling accounts work and what happens to your money”

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RP 19B: Transfers for certain expected tax liabilities, or

“Using tax pool funds to pay expected income or provisional tax before filing returns”

Part R General collection rules
Intermediaries: PAYE intermediaries’ responsibilities

RP 19Transfers from tax pooling accounts

  1. A tax pooling intermediary may apply to the Commissioner to transfer an amount in their tax pooling account to the tax account of a person who is their client or to another intermediary.

  2. An amount transferred and credited to the tax account of a person for provisional tax or terminal tax is treated as follows:

  3. for an amount credited on or before the date that is, or would have been, the person’s final instalment date for a tax year, as income tax paid to meet a provisional tax obligation under the provisional tax rules:
    1. for an amount credited after the date that is, or would have been, the person’s final instalment date for a tax year,—
      1. first, as applied under section 120F of the Tax Administration Act 1994 to pay interest that the person is liable to pay; and
        1. secondly, as income tax paid to meet the person’s provisional tax obligation.

        2. The intermediary may apply to the Commissioner that the amount of a transfer under subsection (1) is credited in the person's tax account or the account of another intermediary on the date on which the amount was deposited in the tax pooling account or on some later date.

        3. The credit date for an amount transferred to a person's tax account is—

        4. for a transfer under section RP 17B(4)(a) or (b), a date nominated that is no earlier than the first day of the relevant income year:
          1. for a transfer under section RP 17B(4)(c), the date on which the person deposited the funds in a tax pooling account:
            1. for an application made within the 60-day period referred to in section RP 17B(5) or (6), a date nominated that is no earlier than the original due date for the relevant period:
              1. in any other case, the date on which the Commissioner receives the application for the transfer.

                1. For the purposes of this section, the intermediary must provide the following details to the Commissioner by electronic means:

                2. the date of the transfer and the credit date, if it is different; and
                  1. the amount of the transfer; and
                    1. the tax file number of the person for whom the amount is transferred.

                      1. When an amount is transferred, the Commissioner must provide a statement showing the effect of the transfer to both the intermediary and the person for whom the transfer is made.

                      Compare
                      Notes
                      • Section RP 19(1) heading: substituted, on , by section 553(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                      • Section RP 19(1): substituted, on , by section 553(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                      • Section RP 19(1): amended, on , by section 66(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                      • Section RP 19(1B) heading: inserted, on , by section 553(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                      • Section RP 19(1B): inserted, on , by section 553(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                      • Section RP 19(1B): amended (with effect on 3 July 2014), on , by section 231 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                      • Section RP 19(1B)(a): replaced, on , by section 273(1) (and see section 273(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                      • Section RP 19(1B)(b): replaced, on , by section 273(1) (and see section 273(2) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                      • Section RP 19(2): amended, on , by section 66(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                      • Section RP 19(2): amended, on , by section 553(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                      • Section RP 19(3): substituted, on , by section 127 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                      • Section RP 19(3)(a): replaced (with effect on 1 April 2019), on , by section 170(1) (and see section 170(2) for application) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                      • Section RP 19(3)(c): amended, on , by section 66(3) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                      • Section RP 19(3)(d): amended, on , by section 66(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                      • Section RP 19 list of defined terms apply: inserted, on , by section 66(5) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).