About Tax Traders
Tax Traders was founded 12 years ago at the kitchen table of co-founders Josh and Nicola Taylor. From humble beginnings, Tax Traders has grown steadily over the years, and is now New Zealand’s most preferred tax pool, working with many of New Zealand’s large corporates and thousands of small and medium sized businesses every year.
Tax Traders believes in the power of business to be a force for good in society. We were founded on the belief that the benefits and opportunities of our tax system should be available to every taxpayer, and not just a select few.
What is tax pooling?
Tax pooling is a framework created by Inland Revenue (IR) in 2003 to lessen the burden of the provisional tax regime. Essentially, taxpayers trade their payments with each other and everyone wins – taxpayers reduce their interest costs or increase their return – and IR gets their tax paid on time.
Instead of making provisional tax payments directly to your account at IR, you deposit your provisional tax payments into a tax pooling trust account at IR held by a trustee and operated by an IR-approved tax intermediary, like Tax Traders.
Once actual profit is known at the end of the year, if you have underpaid your provisional tax, you can buy tax to make up the shortfall with no penalties or interest from IR. If you have overpaid your provisional tax, any surplus tax you have paid can either be sold at a higher interest rate than paid at IR or refunded within a matter of days. You can also borrow at competitive interest rates allowing you to pay your provisional tax when it suits you.
As you might imagine, tax pooling is especially helpful to agricultural businesses or other seasonal industries, where cashflow can be tight and uncertain at different points in the year. By working with Tax Traders, you can pay tax on your terms, removing uncertainty from the equation and increasing flexibility in your business.
If you would like to explore more about tax pooling and learn if it’s the right tool for your business, please get in touch with your Accounted4 Advisor today and visit TaxTraders.co.nz.
