The timing of a transfer between a tax pooling account and a taxpayer’s account depends on many different factors. This means we cannot easily identify our customers that use tax pooling.
We may continue to send overdue debt notices to these customers and debt collection activity may begin before tax pooling transfers are credited towards the account.
The tax pooling intermediary will add an indicator to a taxpayer’s income tax account up to 75 days from the terminal tax due date if there is a pooling agreement in place. This indicator should get set up when the arrangement is agreed. Indicators can only be added for income tax years if we are within 75 days of the terminal tax due date.
We may contact taxpayers about overdue debt if there is no indicator on their account. If a customer is planning to use tax pooling for their income tax debt which is within 75 days of their terminal tax due date and there is no indicator, we refer them back to their intermediary. This is to make sure that the arrangement is confirmed and that an indicator is added to the account.
If a customer plans to use tax pooling for a reassessed amount, and for certain tax types, they have 60 days from the date we tell them how much they owe to submit their tax pooling transfer through their tax pooling intermediary. The maximum amount of tax pooling funds allowed will be the increased amount and any debit interest that applies to the increased amount.
Once a tax pooling transfer has been processed, an updated statement of account will be issued showing the correct balance.