You’ve got a big tax bill, and you don’t want to set up a tax payment arrangement with IRD. What can you do?
One option is purchasing tax from a tax pooling agent. You can ‘buy’ (read: borrow) tax on credit and apply it at the dates you need to pay taxes. The interest rate on buying tax from the pool is lower than IRD’s overdue penalties.
You can only do this for income tax owing, and you have 15 months after the balance to purchase the tax.
A tax purchase will remove any late payment penalties and reduce the interest payable.
If you want to explore your options for paying tax bills, contact Oxford Edge on 03 379 6710.
