 Tax sale/purchase

A depositing taxpayer who has excess tax remaining once it has transferred what it needs from the tax pool to satisfy its own liability can earn a higher rate of interest on their overpayment than it would receive from IRD by selling the surplus tax it has at each of its provisional tax dates to another taxpayer who has underpaid at those dates.The underpayer can reduce the interest payable on its underpaid income tax when it purchases this surplus tax to meet its own liability.A taxpayer may also purchase other types of tax (including income tax, GST, FBT and PAYE) if it has received a notice of reassessment from IRD due to a voluntary disclosure or audit.