In cases where a taxpayer was unaware that they had a tax liability, and later wants to make a voluntary disclosure to report the liability, tax pooling can be used subject to the conditions set out in sections RP 17B (12) to (14) of the Income Tax Act 2007.
Inland Revenue will exercise their discretion and allow pooling to be used to meet the tax liability if they are satisfied that the liability did not arise because the taxpayer choose not to comply with their obligations, or as a result of the failure to take reasonable care with their tax obligations.
Nearly all tax types can be covered, including: AIL, ESCT, FBT, further income tax, GST, imputation penalty tax, income tax, NRWT, PAYE, RSCT, and RWT.
You need to contact the tax pooling team and Inland Revenue (taxpooling@ird.govt.nz) to apply for discretion to use pooling where no tax return has been filed.
If you are unsure or have any questions about commissioner’s discretion, please email our Client Services Team at support@tmnz.co.nz or phone 0800 829 888.