Turn tax into working capital during uncertain economic times

There’s no denying New Zealand’s economy has been through a lot lately: rising costs, slower growth, mixed confidence across sectors. The ripple effects of recent global and domestic pressures are still being felt, making the outlook somewhat cloudy.  

When the economy is uncertain, flexibility is everything. 

And having the ability to get provisional tax payments back quickly could be just what your clients need to weather any unforeseen business turbulence.  

As your attention starts turning towards 28 August and working out what your clients owe, you should be talking to them about depositing their provisional tax into the Tax Traders tax pool.  

Why? 

Depositing into the tax pool gives your clients business options – not just for meeting their tax obligation, but, more importantly, for adapting to whatever comes next should their cash flow situation shift. 

That’s because, unlike payments made directly to Inland Revenue (IR), tax isn’t locked away. Your clients can access those funds when they need them.  

Tax-backed working capital 

Through Tax Traders’ sibling company Taxi, your clients can use their tax pool deposits as security to access affordable business funding (at a rate that is roughly half that of a traditional bank overdraft).  

They can access up to 90% of their provisional tax payments, available the next business day.   

No lengthy approval processes, no need for extra security. Just a smart way for them to put their tax to work and keep their business moving forward.  

And thanks to a legislative change in March 2025 and IR product ruling, they can access their Taxi funds safe in the knowledge that they will not suffer any unintended imputation credit account implications.  

Why it makes sense

• Preserve operating cash: Funds stay accessible when your clients need flexibility most. 

• Adapt to changing conditions: If profitability dips or opportunities arise, they can respond quickly. 

• Access smarter finance: Use Taxi’s tax-backed lending to avoid expensive overdrafts or high-interest arrangements. 

• Prepare for uncertainty: Build financial resilience ahead of the 28 August provisional tax date. 

• Support future planning: More liquidity means better decision-making during volatile periods. 

Quick comparison: Tax Traders/Taxi vs. alternatives 

Things to know about the Tax Traders tax pool 

• The Tax Traders tax pool is an account that is held at IR. 

• Payments deposited into the tax pool are managed by an independent trustee, Public Trust, while they are held in the pool.  

• The tax pooling framework was introduced by IR and has been operating in New Zealand for more than 20 years. It is trusted and valued by thousands of taxpayers, from NZX-listed companies to SMEs, and accounting firms of all shapes and sizes. 

The Tax Traders tax pool helps you build that control in right from the start, offering your clients flexibility – not just tax compliance.  

This isn’t just a smart tax strategy. It’s a way to help your clients to stay steady, stay funded and stay ahead at a time when the New Zealand economic outlook remains bleak.  

Support better tax planning. Get your clients depositing their provisional tax into the Tax Traders tax pool on 28 August so they can stay agile during uncertain economic times.   

Disclaimer: The information in this article is Tax Traders’ general view, intended to provide enough information to inform you about this topic generally as at the date of the article, rather than comprehensive information for all situations. This article should not be relied upon to make decisions. Tax Traders recommends you seek professional advice as appropriate for your circumstances. Rates are accurate at time of publication and subject to change.