Tax Payments – When Are These Received In Time?

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Inland Revenue (IR) has recently updated its policy for when tax payments are accepted as having been made in time.

With the influence of technology there has been a significant shift in practice to use digital methods for making tax payments. IR encourages customers to use direct banking facilities when they make tax payments (or when refunds are issued).

New Zealand electronic payments

-     A payment will be received in time when it has been electronically paid or direct credited into an Inland Revenue account either on or before the due date. You may need to be familiar with your banks processing schedule.

-     If a customer wishes to post-date an electronic payment the “my tax payment” option is available on all major New Zealand banks’ websites.

-     Customers who are registered for myIR can set up direct debits where available for certain revenue types. A direct debit payment will be received in time when it has been credited into an Inland Revenue account on or before the New Zealand due date.

Debit/credit cards

-     Customers can make payment by debit/credit card over the phone, through the payment page on our website for all revenues, and through myIR, which is a secure online service.

-     A debit/credit card payment will be received in time when it has been paid or direct credited into an Inland Revenue account on or before the New Zealand due date.

Cash and eftpos payments

-     Payments by cash or eftpos cannot be accepted at an Inland Revenue office. Customers may make payments by cash or by eftpos at branches of Westpac. Payments made over the counter or by eftpos are received in time if they are made on or before the due date.

-     Customers with a Westpac bank account may also make payments via Westpac ATMs, provided they have a payment slip with a bar code that has been issued by Inland Revenue.

Payments by cheque

Physical delivery to Inland Revenue offices

-     Cheque payments will be accepted as being received in time if delivered to an Inland Revenue office on or before the close of business on the due date.

-     Drop boxes are now inside Inland Revenue office reception areas and are only available during reception opening hours.

Cheques through post

-     Cheques posted to an Inland Revenue postal address, whether posted from within New Zealand or from overseas, must be received on or before the due date. Payments by post should be sent to: Inland Revenue, PO Box 39050, Wellington Mail Centre, Lower Hutt 5045.

Post-dated cheques

-     Inland Revenue will make its best efforts not to bank post-dated cheques until the specified date. A cheque that is post-dated after the due date, even though it may have been received on or before the due date, will be treated as late. This applies to cheques that are mailed or physically delivered.

 Tax pooling

-     Tax pooling involves customers depositing money with a tax pooling intermediary who then deposits that money into a tax pooling account with Inland Revenue. When it is transferred from the tax pooling account into a taxpayer’s tax account it becomes a tax payment on the date specified when the tax pooling arrangement was entered into.

Weekends and public holidays

-     If a due date falls on a weekend or a public holiday, then an electronic payment will be in time when it is credited into an Inland Revenue account on or before the next working day.

-     If a due date falls on a weekend or a public holiday (including a provincial anniversary day), a payment will be in time if it is received by an Inland Revenue branch office, at a Westpac branch or at an Inland Revenue postal address on the next working day. This treatment only applies to those customers who usually deliver payments to a Westpac branch or Inland Revenue drop box in the province that is celebrating its anniversary day and so are unable to access those sites on that day.

Heather Spreckley