NZ Tax - Tax returns show amount at Tax Pooling
Currently NZ clients can make payments to a Tax Pooling provider (e.g. Tax Traders or TMNZ) and they will sit in the Tax Pooling Providers account until transferred to IRD.
In the clients mind they have 'paid this tax' already, but when the tax return is prepared in XPM there is no sign of any tax pooling payments, and it shows the full tax liability.
It would be great if there was a way to type in how much has been paid to Tax Pooling, and record this on the front page of the tax return so there is a note to say 'we know you don't have to pay this full amount, as you have paid xx amount to tax pooling already'.
You won't be able to put it in the calculation section, as a portion of the tax pooling value may be deducted as interest, but even just a note at the bottom similar to where the losses carried forward etc are recorded, with a box to fill in on the 'front cover page' where the bank account is entered.
Natascha Natke
shared this idea
Thank you for this excellent and detailed suggestion regarding NZ tax returns and tax pooling payments.
We can certainly see how clients would find it confusing when their prepared tax return in XPM doesn't reflect payments they have already made to a provider like TMNZ or Tax Traders. Your idea to add a note or a specific field on the return to record this amount would be a great way to provide clarity and manage client expectations.
We're grateful for your engagement and for letting us know the changes that matter to you. We've reviewed your idea and now it can gain support from other community members.
Along with votes, others can now comment to share additional detail about how this feature could improve their practice and client conversations around tax payments.
