The way Taxi works has now been written into tax law — making it even easier for businesses like yours to move forward with confidence.
From 1 April 2025, a key amendment to the tax rules will confirm that using your provisional tax deposits to unlock working capital through Taxi won’t affect your imputation credits.
What does this mean for you?
In short, it means confidence. Confidence that the government has looked closely at how Taxi works and confirmed that it fits within the imputation credit rules. Confidence that using Taxi won’t risk your imputation credit position. And confidence that more and more Kiwi businesses — and now even the government — see Taxi as a smart, credible way to unlock working capital.
This is a big moment for us — and even bigger news for the growing number of Kiwi businesses using Taxi to manage their cash flow without jumping through hoops.
This change to the Taxation Bill takes effect from 1 April 2025 and is a smart step forward for business owners who want clarity, flexibility and confidence when using their tax payments as a business tool.
It’s a sign of just how much momentum is building behind the Taxi movement.
Here’s the technical bit (written by our tax specialists)
“The legislation now makes it clear that when a business uses Taxi — and temporarily transfers a security over a tax pool deposit to access funding — it won’t trigger a debit in their imputation credit account (ICA).
An ICA debit will only occur if the borrower defaults on their agreement, and ownership of the deposit permanently transfers to Taxi.
The key sections updated are OB 6(1), OB 35(1), OP 9(1), and OP 33(1) of the Income Tax Act 2007.
This clarification removes previous uncertainty around how ICA rules applied to tax-backed lending, making it easier for taxpayers — especially provisional taxpayers — to confidently use their tax deposits to access working capital.”
