Category Archives: INC

How to correctly disclose tax pooling transactions in your IR4J Imputation Return

We are often asked why we default tax pooling transactions to the Other disclosure boxes on the IR4J imputation return. The answer is simple, this is where Inland Revenue specify you put them. We have directly confirmed this with them:

“Deposits and transfers into a tax pooling account that create an imputation account credit should be recorded in keypoint 41E, while refunds and transfers out of a tax pooling account that create an imputation account debit should be recorded in keypoint 42D.”

Inland Revenue, 21 August 2015

Why do Inland Revenue want it this way rather than including pooling in the tax payments disclosure box… who knows. We suspect they would prefer to have a separate box for tax pooling on the IR4J but this isn’t an option in the current system.