Taming Tax Payments – A Model Where Everyone Benefits

Tax Management New Zealand’s mission is to create a better tax environment for New Zealand business – built on a foundation of customer service, continual innovation and strong systems. When TMNZ formed in 2003 they contacted Bluefuse to lead the company’s online systems.

Seeking ways to reduce tax payment costs for business

The TMNZ founder came up with the idea of the tax pooling system for the Inland Revenue (IRD) in 2001 when they sought ways to reduce compliance costs for businesses.

The Government was not in the business of making money out of charging interest. By introducing use of money interest, they simply sought to deter businesses from using them as a bank and to ensure full tax was collected on time.

So TMNZ was formed in 2003 to deliver a world first private sector model of tax pooling – providing overpayers with interest on their overpayment, paid for by the underpayers – but at a lower rate than IRD charges. The overpayers receive interest back at a higher rate than the IRD offers. Yet all at a level that would ensure IRD still met its targets – everyone benefits.

TMNZ started with the goal of reducing tax payment costs for business, and has continued to develop a range of tax payment and cash flow solutions to save taxpayers money. Innovation is one of its foundation values.

TMNZ is now the preferred tax payment intermediary for the largest New Zealand companies, major trading banks, leading chartered accountancy firms and thousands of small and medium sized businesses. Since its inception, TMNZ has helped more than 26,000 clients save more than $160 million of IRD interest and penalties.

This long-distance, long-term relationship with the company is testimony to the level of service that Bluefuse offers.

What we made

Bluefuse were engaged to develop the first version of the TMNZ website, and since then have worked closely with the company to develop a range of sophisticated online business applications and a user-friendly trading platform for its extensive client base, which includes major corporations and tax firms in the country.

In addition to this, we have developed an extensive range of financial management tools that cater for the thousands of online transactions that need to be processed, and to allow TMNZ to manage its business processes securely.

“TMNZ’s website and internal management tools are extremely sophisticated and far ranging. We specialise in translating complex business needs and processes into robust, intuitive systems.”

What they said

“As the Founding Director of Tax Management New Zealand, I have utilised Bluefuse’s services since 2002. The longevity of this association is testimony to the working relationship of the two companies. During this time Bluefuse have overseen the development of our complex and critical front and back end web applications and systems that my company uses to interact with our customers and manage our daily business processes. Bluefuse take a commercially-oriented approach, and help us to define user requirements and implement great web based systems. I would have no hesitation in recommending them.”

Ian Kuperus - TMNZ, Founding Director

What next

NZ’s tax payment market has evolved into a highly competitive and continually changing landscape, where service and innovative solutions are key differentiators that have allowed TMNZ to remain the market leader. We will be partnering with Bluefuse to continue to transform our operating systems and front end to cope with our high growth rates and developing product base, as well as to ensure our digital platforms continue to service and attract our diverse clients.