Government intends to introduce rules to amend the current tax pooling rules and it will be applicable from 3 July 2014.The proposed changes will allow taxpayers to use tax pooling funds to pay interest on their tax obligations, arising out of an amended tax assessment or the resolution of a dispute. Under the current rules, taxpayers can withdraw funds from a tax pool to cover tax owed but not interest that might also be due. This amendment will provide certainty for business to meet their tax obligation for using tax pool.
