Take control of your cashflow with tax pooling
Tax deadlines can be a headache – especially for SMEs facing seasonal revenue fluctuations or unexpected cashflow challenges. TMNZ’s innovative tax pooling service offers a smarter, more flexible way to manage tax payments, helping businesses avoid IRD penalties and interest while freeing up cash for growth. TMNZ’s CEO Matt Edwards and Chief Commercial Officer Matt Rama explain how tax pooling works and why more businesses should be taking advantage of it.
“Tax pooling essentially provides a tax payment smoothing service,” says Edwards.
“It’s all about offering flexibility when tax payments are missed or simply can’t be made on time, thereby avoiding the steep penalties and interest imposed by the Inland Revenue Department (IRD).”
He goes on to describe a common scenario: For seasonal businesses, like a ski resort that earns its revenue primarily in winter, tax deadlines falling in low-cash months can be a significant cashflow burden. With tax pooling, companies can finance their tax payments at a rate far lower than conventional lending options, smoothing out cashflow over the year.
TMNZ started in 2003 when Founder, Ian Kuperus, had the big idea to make tax easier and save homegrown businesses money. IRD threw its support behind the idea and, as they say, the rest is history. Over the past 20 plus years, over 100,000 businesses have saved more than $500 million, by using TMNZ’s flexible and innovative tax payment solutions.

Both Rama and Edwards highlight the two core ways TMNZ’s tax pooling works. The first benefit lies in the service’s ability to help manage cashflow effectively. “Imagine a contracting business that needs to purchase new equipment but is short on cash because a hefty tax payment is due,” Rama says.
“By financing their tax through TMNZ, businesses can redirect their funds to essential capital investments, financing their tax at an interest rate comparable to residential mortgage rates – all without having to provide any additional security.”
Secondly, it allows businesses to “buy backdated tax” – essentially catching up on missed payments from previous dates at a fraction of the cost of IRD penalties and interest.
“We’ve had recent cases where businesses faced tax reassessments from as far back as 2013,” says Rama.
In fact, Rama points out that if a business has a reassessment involving earlier years and has underpaid its tax, it will face IRD interest charges (sometimes exceeding the original tax amount). Using a service like TMNZ’s tax pooling could save anywhere from 20 percent to 40 percent on potential interest costs.
A standout feature of TMNZ’s approach is the flexibility it offers. The repayment rates are determined by current market interest rates and tailored to the specific term of financing required by the client. Business owners can choose to roll over their financed tax amount, make partial repayments, or pay in full.
“For business owners, there’s no lengthy paperwork. It’s easy to register with no application forms, or hidden fees, just a straightforward process,” says Rama.

Tax pooling is not just a standalone product; it integrates seamlessly with the broader financial ecosystem. Edwards explains that many of TMNZ’s clients come through accounting firms. “Our process is designed to be straightforward. Once a business is registered with us, transactions are handled on a quote and invoice basis, eliminating the need for excessive documentation. This streamlined approach makes it easier for accountants to manage their clients’ tax liabilities efficiently.”
Despite tax pooling having been available for more than two decades, Edwards acknowledges that many businesses are still unaware of its benefits. “We’re the largest tax pool in New Zealand, managing anywhere up to $10 billion at any one time,” says Rama. “And we’ve got the longest history of tax deposits, going all the way back to 2009.”
Edwards says that TMNZ wants to raise the awareness of tax pooling by making it more accessible and easier to understand, using technology to simplify the process. “We’re in an economy where any tool that helps businesses manage their cashflow is a benefit. Our strategic goal is to harness technology to transform what is inherently complex tax theory into an accessible, consumable product for every business.”
For more details on TMNZ’s tax pooling offering, visit www.tmnz.co.nz.