If you can’t complete your Taxi repayments within the nine-month repayment period, we will, in most cases, be able to extend your repayment period past the initial nine months.
An extension of your repayment period can be made provided you have been making your provisional tax payments on time and through Taxi. This gives you additional time to complete your Taxi repayments.
Should we extend your repayment period, there will be additional interest costs to pay.
We only use your most recent provisional tax payments as security because they aren't yet due at the IRD. If you haven't made your Taxi repayments in time, we can still release your historic tax payments when they are due to be transferred to the IRD. This means your tax is paid on time so you can avoid late payment penalties and use-of-money-interest.
In the unlikely situation that you fail to make your Taxi repayments within the nine-month period, and you haven't made any further provisional tax payments through Taxi, we will use the provisional tax payments you have made (and given as security) to cover the remaining outstanding Taxi repayments.
In this instance, Taxi is not obliged to reinstate your tax position so you will need to manage and settle your tax obligations directly with the IRD or by using a tax-pooling intermediary.