Tax Financing

Tax finance is a quick and simple way of accessing finance for your business at competitive rates.  The benefits of tax financing include::-

• Reduce your borrowing costs - Our tax finance rates are very competitive.  TPS' finance fees are often significantly lower than the interest rates charged under business banking facilities.
• Time your tax payment dates to suit your cashflow - If you finance your tax payment, TPS will pay tax into the tax pooling account on the scheduled payment date and hold it for you until the finance term matures and you have the funds to pay for it.
• Free up existing facilities - Tax finance provides you with an alternative means of financing, expanding your available credit.
• No application fees, security or credit checks - Tax finance is available quickly and easily.
• Public Trust protects your interests - Public Trust handles all payments and tax deposits and is the only party authorised to make transfers.
• Flexibility of use of capital - Once you have financed a cetain amount you only have to repay the amount of tax you actually need. So you don't have working capital tied up at the IRD waiting for a refund.

Tax finance is particularly attractive to businesses:

• That currently pay interest of more than 6% under their bank facilities;
• Require an additional source of financing; or
• Have seasonal cashflows.

TPS can offer tax finance rates from 5.6% per annum.  Click here to obtain a quote.

The finance fee is paid in advance and is calculated by reference to interest rates available on our web site. The fee can be compared to your overdraft rate or the Use of Money Interest rate charged by the IRD.

TPS is able to respond to most requests almost immediately.

We can tailor the term of a tax finance transaction to suit your business needs.  The TPS tax finance calculator only shows terms of 1-21 months but, if you contact us, we will probably be able to offer you a customised term.  However, you must ensure that the maturity date of the tax finance transaction is no later than:

• 60 days after your terminal tax date, if the tax that you are financing is provisional tax or terminal tax;
• 60 days after the date on which the Commissioner of the IRD issues the notice of assessment increasing the amount of tax payable, if you are financing an increased amount of tax following an assessment, determination or voluntary disclosure; or
• 60 days after the date on which the court proceedings are finally determined, if the tax you are financing is deferrable tax.

No.  When you enter into a tax finance transaction with TPS you are buying the right to purchase a tax deposit equal to the Finance Amount on the Maturity Date but you have no obligation to do so.  You can decide whether you purchase all, part or none of the tax deposit that you have financed.  We will contact you close to the Maturity Date to ask whether you want to purchase the financed tax deposit.  If you confirm to us that you want to purchase all or part of it, you will then have an obligation to pay for the amount you have specified.