RP 17BTax pooling accounts and their use

1. A tax pooling account means a trust account into which a tax pooling intermediary pays an amount that they receive from a person in their role as intermediary.

2. An amount held in a tax pooling account on behalf of a person may be refunded, transferred, sold, or used to satisfy a person’s liability for—

3. provisional tax other than under the AIM method:
4. terminal tax:
5. an increased amount of tax described in subsection (3):
6. interest under Part 7 of the Tax Administration Act 1994 on an increased amount of tax described in subsection (3):
7. interest under Part 7 of the Tax Administration Act 1994 on the provisional tax or terminal tax described in subsection (4):
8. a new liability described in subsection (12).

9. For the purposes of this section, an increased amount of tax—

10. arises when a person's previous assessed liability is increased after—
    1. the Commissioner amends an assessment under section 113 of the Tax Administration Act 1994:
    2. the Commissioner makes a determination under section 119 of that Act:
    3. an assessment is made because the Commissioner or the person is treated under section 89H of that Act as having accepted a proposed adjustment:
    4. the person makes a voluntary disclosure:
11. also arises when a person has—
    1. before taking any action under subparagraph (ii), filed a return required to be provided for a tax type listed in subsection (8); and
    2. has made a voluntary disclosure in relation to the return:
12. also arises when—
    1. before any assessment or adjustment under subparagraph (ii) is made, the person has filed a return required to be provided for a tax type listed in subsection (8); and
    2. the Commissioner makes an assessment or adjustment increasing an amount previously payable:
13. includes deferrable tax as defined in section 3(1) of the Tax Administration Act 1994 payable by the person:
14. includes an amount of tax (the agreed delay tax) for which the person has initiated a dispute under Part 4A of the Tax Administration Act 1994, if—
    1. the facts and questions of law in the dispute closely resemble the facts and questions of law for an assessment that is at the time the subject of proceedings in a court or Taxation Review Authority; and
    2. the Commissioner and the person have agreed that the dispute will be determined by the final outcome of the proceedings; and
    3. the Commissioner and the person enter the agreement on or after the date on which the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 receives the Royal assent:
15. does not include the amount of the previous assessment or the amount that was previously payable under paragraph (ab) or (ac), as applicable.

16. A person who chooses to use funds in a tax pooling account to satisfy an obligation for provisional tax (other than under the AIM method) for a tax year, terminal tax for a tax year, or interest under Part 7 of the Tax Administration Act 1994 on the provisional tax or terminal tax may ask the tax pooling intermediary to arrange the transfer of an amount to their tax account with the Commissioner as follows:

17. on a day that—
    1. is, or is after, the first day of the person’s income year corresponding to the tax year; and
    2. is, or is before, the day that is 75 days after the person’s terminal tax date for the tax year, unless paragraph (b) or (c) applies:
18. on a day that—
    1. is, or is after, the first day of the person’s income year corresponding to the tax year; and
    2. is, or is before, the day that is 76 days after the person’s terminal tax date for the tax year, if the person’s balance date falls at the end of October, November, or December, and the terminal tax date falls in a tax year that includes a 29 February:
19. if the amount is to be transferred from funds deposited on the person's behalf in the tax pooling account under section RP 18 and the person's return filing requirements have been met, at any time.

20. For the purposes of subsection (4)(c), if the person is part of a group of companies, the person includes the other companies in the group at the time at which a deposit to the tax pooling account is made, or funds purchased or used, as applicable.

21. If a person chooses to use funds in a tax pooling account to satisfy an obligation for an increased amount of tax as described in subsection (3)(a) to (ac), or for interest under Part 7 of the Tax Administration Act 1994 on the increased amount of tax, the tax pooling intermediary must apply to the Commissioner within 60 days from the date on which the Commissioner issues the notice of assessment increasing the amount to transfer the amount to the person's tax account with the Commissioner.

22. If a person chooses to use funds in a tax pooling account to satisfy an obligation for deferrable tax under subsection (3)(b), for agreed delay tax referred to in subsection (3)(bb), or for interest under Part 7 of the Tax Administration Act 1994 on deferrable tax or agreed delay tax, the tax pooling intermediary must apply to the Commissioner within 60 days from the date on which the court proceedings are finally determined to transfer the amount to the person's tax account with the Commissioner. For the purposes of this subsection, court proceedings include proceedings before the Taxation Review Authority.

23. The maximum amount that a person may ask a tax pooling intermediary to transfer to meet an obligation to pay tax is—

24. for a transfer under subsection (4)(a) or (b), the total of—
    1. the provisional tax or terminal tax payable:
    2. interest under Part 7 of the Tax Administration Act 1994 on the provisional tax or terminal tax:
25. for a transfer under subsection (4)(c), the amount of the funds deposited by the person under section RP 18:
26. for a transfer under subsection (5), the total of—
    1. the increased amount of tax payable:
    2. interest payable under Part 7 of the Tax Administration Act 1994 on the increased amount of tax:
27. for a transfer under subsection (6), the total of—
    1. the amount of deferrable tax or agreed delay tax payable:
    2. interest payable under Part 7 of the Tax Administration Act 1994 on the amount of deferrable tax or agreed delay tax.

28. For the purposes of sections RP 17 to RP 21, an increased amount of tax or deferrable tax includes an amount relating to—

29. tax paid or payable under the PAYE rules, ESCT rules, RSCT rules, RWT rules, or NRWT rules:
30. income tax, GST, FBT, further income tax, and imputation penalty tax payable under section 140B of the Tax Administration Act 1994.

31. Repealed

32. Repealed

33. Repealed

34. Subsection (13) applies when—

35. a person is liable for an increased amount of a tax in a category referred to in subsection (14), or of interest under Part 7 of the Tax Administration Act 1994 (the Part 7 interest) on an increase in the amount of such a tax; and
36. the liability referred to in paragraph (a) (the new liability) does not relate to a liability of the person that arose from a return by the person, or an assessment of the person, made before the person becomes aware of the new liability; and
37. the person makes a voluntary disclosure of the new liability; and
38. the person notifies the Commissioner of the details of the new liability and the notification results in an assessment of the new liability or in an obligation to pay the new liability; and
39. the person makes the voluntary disclosure referred to in paragraph (c)—
    1. within a reasonable time after the earliest time that the person or the person’s agent is aware of the person’s new liability; and
    2. before the date of the return referred to in paragraph (d); and
    3. before the person is notified, within the terms of section 141G(4) of the Tax Administration Act 1994, of a pending tax audit or investigation or that a tax audit or investigation has started.

40. On application by the person, the Commissioner may notify the person that the person may use funds in a tax pooling account to meet the new liability, if the Commissioner is satisfied that the new liability did not arise as a result of a choice by the person not to comply with the person’s obligations under the Inland Revenue Acts or as a result of a failure by the person to take reasonable care to comply with those obligations.

41. The categories of tax that may be included in a new liability for the purposes of subsection (12) are—

42. ESCT:
43. FBT:
44. further income tax:
45. GST:
46. imputation penalty tax:
47. income tax:
48. NRWT:
49. PAYE:
50. RSCT:
51. RWT.

Notes

• Section RP 17B: inserted, on 6 October 2009, by section 551 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
• Section RP 17B(2): replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
• Section RP 17B(2)(a): amended, on 1 April 2018, by section 44(1) (and see section 44(3) for application) of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
• Section RP 17B(2)(d): amended, on 1 April 2019, by section 272(1) (and see section 272(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
• Section RP 17B(2)(e): inserted, on 1 April 2019, by section 272(1) (and see section 272(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
• Section RP 17B(2)(f): inserted, on 30 March 2022, by section 169(1) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(3)(ab): inserted, on 29 August 2011, by section 126(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(3)(ac): inserted, on 29 August 2011, by section 126(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(3)(bb): inserted (with effect on 3 July 2014), on 24 February 2016, by section 230(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
• Section RP 17B(3)(c): amended, on 29 August 2011, by section 126(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(4) heading: substituted, on 29 August 2011, pursuant to section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(4): substituted, on 29 August 2011, by section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(4): amended, on 1 April 2019, by section 272(2) (and see section 272(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
• Section RP 17B(4)(a): replaced, on 30 March 2022, by section 169(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(4)(b): replaced, on 30 March 2022, by section 169(2) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(4B) heading: inserted, on 29 August 2011, by section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(4B): inserted, on 29 August 2011, by section 126(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(5) heading: replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
• Section RP 17B(5): amended, on 2 June 2016, by section 65(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
• Section RP 17B(5): amended (with effect on 3 July 2014), on 24 February 2016, by section 230(4) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
• Section RP 17B(5): amended, on 29 August 2011, by section 126(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(6) heading: replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(5) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
• Section RP 17B(6): amended, on 2 June 2016, by section 65(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
• Section RP 17B(6): amended (with effect on 3 July 2014), on 24 February 2016, by section 230(6) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
• Section RP 17B(7) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(7): added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(7)(a): replaced, on 1 April 2019, by section 272(3) (and see section 272(4) for application) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
• Section RP 17B(7)(c): replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(7) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
• Section RP 17B(7)(d): replaced (with effect on 3 July 2014), on 24 February 2016, by section 230(8) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
• Section RP 17B(8) heading: added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(8): added, on 29 August 2011, by section 126(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B(9) heading: repealed, on 30 March 2022, pursuant to section 169(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(9): repealed, on 30 March 2022, by section 169(3) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(10) heading: repealed, on 30 March 2022, pursuant to section 169(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(10): repealed, on 30 March 2022, by section 169(4) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(11) heading: repealed, on 30 March 2022, pursuant to section 169(5) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(11): repealed, on 30 March 2022, by section 169(5) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(12) heading: inserted, on 30 March 2022, by section 169(6) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(12): inserted, on 30 March 2022, by section 169(6) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(13) heading: inserted, on 30 March 2022, by section 169(6) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(13): inserted, on 30 March 2022, by section 169(6) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(14) heading: inserted, on 30 March 2022, by section 169(6) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B(14): inserted, on 30 March 2022, by section 169(6) of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section RP 17B list of defined terms apply: inserted, on 2 June 2016, by section 65(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
• Section RP 17B list of defined terms ask: inserted, on 2 June 2016, by section 65(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
• Section RP 17B list of defined terms balance date: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B list of defined terms corresponding income year: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B list of defined terms income tax: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
• Section RP 17B list of defined terms notify: inserted, on 2 June 2016, by section 65(4) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
• Section RP 17B list of defined terms return of income: inserted, on 29 August 2011, by section 126(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).