Tax Administration Act 1994

Third-party providers - Tax pooling intermediaries

124X: Winding up tax pooling accounts

You could also call this:

"What happens when a tax pooling account is closed down"

Illustration for Tax Administration Act 1994

You can wind up your tax pooling account at any time. The Commissioner can require you to wind up your tax pooling account for several reasons. These reasons include if your actions are stopping a taxpayer from managing their tax payments, or if you have broken the rules. You must meet certain requirements, as stated in section 124U, or the Commissioner can require you to wind up your account. The Commissioner can also require you to wind up your account if you have fewer than 100 taxpayers, or if your account is in deficit. When the Commissioner requires you to wind up your account, they can do it immediately or set a date. The Commissioner must give you 30 days' notice if they plan to wind up your account because you have fewer than 100 taxpayers. When your tax pooling account is wound up, the Commissioner can refund the balance to you or go to court for directions on what to do with the balance.

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This page was last updated on 28 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1247665.

Topics:

Money and consumer rights > Taxes

124W: Requirements for applications to establish tax pooling accounts, or

"What you need to do to open a tax pooling account"

124Y: Approval of approved AIM providers, or

"Who can be approved to help with tax accounting systems?"

Part 7BThird-party providers
Tax pooling intermediaries

124XWinding up tax pooling accounts

An intermediary may wind up their tax pooling account at any time.
The Commissioner may require an intermediary to wind up their tax pooling account if—
the intermediary’s actions are preventing a taxpayer from effectively managing their liability to pay provisional tax and use of money interest; or
the intermediary is or has breached their obligations under this Part; or
the tax pooling account is in deficit; or
fewer than 100 taxpayers are, or are likely to be, making deposits in the tax pooling account; or
the intermediary does not meet the requirements of section 124U; or
when they are not a natural person, the intermediary has been put into liquidation or receivership.

For the purposes of subsection (2),—
the Commissioner may require the winding up immediately or may set another date for the winding up:
the Commissioner must give 30 days’ notice to the intermediary of any intended action using subsection (2)(d).

On the winding up of a tax pooling account, the Commissioner may refund the balance of the account to the former holder of the account, or may apply to a court for directions for the disposal of the balance of the account.

Compare

s MBA 8

Notes

Section 124X: replaced, as section 15T, on 6 October 2009, by section 598(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 124X: renumbered, on 18 March 2019, by section 9(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
Section 124X(2)(e): amended, on 18 March 2019, by section 113 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).