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If your client can’t complete their Taxi repayments within the nine-month repayment period, provided they have been making their regular provisional tax payments on time and through Taxi, we will, in most cases, be able to extend the repayment period, past nine months. This gives your client additional time to complete their Taxi repayments. Should this happen, there will be ongoing interest costs for your client to pay. Because we only use the most recent provisional tax payments as security, even if your client’s Taxi repayments haven’t been made to us, we can still release their historic tax payments when they are due to be transferred to IR. This means their tax is still paid on time and they avoid late payment penalties and UOMI. We simply take security over their most recent tax payments which aren’t yet due with IR. In the unlikely situation that your client fails to make their Taxi repayments within the repayment period, and they haven't made any further provisional tax payments to IR, Taxi will use the provisional tax payments they have made and given as security, to cover the remaining outstanding Taxi repayments. In this instance, Taxi is not obliged to reinstate your client’s tax position and you will need to contact and settle your tax obligations directly with IR.This is no different to the current situation that exists with Inland Revenue if you fail to pay your provisional tax within 75 days of your terminal tax date via a tax pool.

Yes! Taxi is for all businesses that pay provisional tax. However, if your client has balances in the Tax Traders tax pool, they can get started straight away. It’s no problem if they have balances in another tax pool - they can transfer their balances over to Tax Traders so your clients can benefit sooner.

Provided your client’s Taxi repayments are made in full and on time (with such amounts subsequently being transferred to IR), there should be no overall impact to your client’s imputation credit account as a result of accessing funds through Taxi. There are however specific rules around the timing of debits and credits for the funds accessed and repaid. We are here to help, so please contact us for more information if you have a specific scenario you would like to discuss.

Yes! We have a growing number of firms who have joined the Taxi Partner Programme. To find out more about how you and your clients can benefit from the Taxi Partner Programme contact us here (https://www.gotaxi.co.nz/become-a-partner).

Your Taxi rate is the interest rate you pay on amounts withdrawn from your Taxi account.This is comparable to the overdraft base rate plus margin that banks charge. We compare Taxi to a business overdraft because similiar to a business overdraft it is a flexible funding facility required to be cleared to zero within nine months, with a fee for availability of funds to borrow. It is secured against business assets (in this case the provisional tax payments), similar to the GSA (General Security Agreement) for standard business borrowing from a bank. GSA lending is generally considered more high risk than residential mortgage lending so any business loan secured with residential property is not comparable to Taxi funding. Rates for banks represent the minimum and maximum overdraft rate (base rate plus lender’s margin) as quoted on the interest.co.nz/borrowing/business-base-rates page at the date listed. [Individual bank rates may be lower than the maximum for some customers]. In addition to the rates referenced here, both banks and Taxi charge a monthly fee for access to their facilities. On the interest.co.nz page above this is referred to as the Management fee. Taxi’s management fee is 0.15% per month on the Taxi facility limit. This is calculated monthly and billed quarterly and is comparable to the management fee of the main four banks.