Fintech ventures aim to transform New Zealand’s tax system

Entrepreneurial couple Nicola and Josh Taylor, founders of tech-focused tax pooling provider Tax Traders and its sibling start-up Taxi, have always been firm believers that business can be “a force for good”. “We started our fintech businesses with a clear mission: to make the tax system work better for every New Zealand business, not just the big end of town,” explains Nicola. “We believe that when systems are made more accessible and equitable, everyone benefits, and the economy becomes more resilient and productive.”

The purpose-driven pair launched Tax Traders in 2012. The company specialises in tax pooling solutions, helping businesses and accountants manage provisional tax obligations more efficiently. Although they had a clear vision for the venture, it was a bold move. They sold their family home to fund the start-up and lived without income for 18 months while parenting a five-year-old, a three-year-old and a newborn. What carried them through was the courage of their convictions, recalls Nicola. “We found our way by staying clear on why we do what we do.”

They have since grown the business into one of New Zealand’s leading fintech companies and a certified B Corp, recognised in the top 5 percent globally for integrity, values and engagement. “Our early move into tech-based solutions, our award-winning culture, our focus on customer experience, and our ongoing product development all grow out of that same foundation,” says Nicola. “It’s not just what we do, but why and how we do it that makes the difference.”

That same sense of purpose informed their decision to launch Taxi in 2024. “It was a big call to launch another company while raising three children and running Tax Traders,” concedes Nicola. “But when you are clear about why you are doing something, it becomes easier to say yes to the things that matter.”

Taxi had its genesis in the first Covid-19 lockdown, after Nicola and Josh had spent time working with some large corporates to help them free up their working capital. “We structured deals backed by their tax deposits,” Nicola recalls. “However, this tax-backed working capital was only accessible to the biggest companies. I remember thinking that every business should be able to access this kind of flexibility. That was the spark for Taxi: we took a process that had previously been bespoke, expensive, and reserved for large corporates, and turned it into a fast, simple, accessible product for all businesses.”

While the two ventures are complementary, Taxi solves a different pain point: cashflow pressures. “Businesses often face cashflow pressure just as their provisional tax payments are unavailable,” explains Nicola. “Currently over $18 billion of provisional tax from SMEs alone is sitting at Inland Revenue. Meanwhile, those same SMEs are desperate for working capital.” Taxi turns those provisional tax payments into a source of flexible funding. “Together, Tax Traders and Taxi offer a more complete financial toolkit for growing businesses,” she says.

Although Taxi is a relative newcomer to the fintech industry, Nicola and Josh have been “blown away” by the response. “We’re just over a year in, and we’ve seen millions of dollars of funding released to hard-working businesses in every sector of the economy,” Nicola enthuses. Three aspects of Taxi’s success have surprised them: “The enthusiasm of accountants who have immediately seen the value; the breadth of businesses finding Taxi helpful; and the use of Taxi by larger businesses.”

And Taxi’s potential impact extends well beyond these immediate benefits. A report by the New Zealand Institute of Economic Research (NZIER) notes that SMEs in New Zealand experience negative cashflow an average of four months a year, restricting their ability to grow, innovate and invest. “Taxi directly addresses this by unlocking billions in idle capital,” explains Nicola. “NZIER estimates that if it were widely adopted, Taxi could contribute up to $10.8 billion in additional GDP annually and save businesses between $50 million and $580 million per year in financing costs. It could also deliver over $1.2 billion in productivity gains through improved mental wellbeing and reduced stress for small business owners.”

Creating tangible societal impact has always been at the heart of both Tax Traders and Taxi, notes Nicola. “For us, these aren’t just numbers. They reflect what’s possible when financial tools are built to serve people,” she asserts. “The economic impact is real, but so is the social impact: stronger businesses, more confident business owners, and healthier communities. That’s the kind of entrepreneurship we care about.”

The pair met at Law School at Waipapa Taumata Rau, the University of Auckland. Josh was pursuing a conjoint degree in Law and Commerce, while Nicola was studying for a Bachelor of Laws, eventually graduating with a Master of Laws. Their strong personal relationship remains one of their businesses’ greatest assets, says Nicola. “We have different but complementary skill sets and strengths,” she observes. “What makes you a great co-founder also makes you a great life partner.”

A new law change has confirmed that accessing working capital through Taxi, using provisional tax balance as security, will not affect imputation credits. It’s a technical legislative tweak prompted by a submission from Taxi. “It’s a big moment, not just for us as a fintech, but for what it represents: a system that is evolving to better support Kiwi businesses and a business that is supported by both Inland Revenue and Parliament,” explains Nicola.

Another recent highlight reflects the pair’s emphasis on fostering a people-centred work culture. Last year Tax Traders and Taxi were named the overall winner in the Best Places to Work Awards – an accolade Nicola describes as “a deeply meaningful milestone”. “It affirmed that how we build matters just as much as what we build,” she reflects. “Values-led business is not just possible, it’s powerful.”

Unsurprisingly, Nicola’s advice for budding entrepreneurs is to “start with a clear purpose”. “Ask yourself why the world needs your product or service, and how people will be better off,” she suggests. “The world needs more entrepreneurs who care deeply, who build with values, and who believe that business can be a force for good. I truly believe that businesses are better placed for solving complex problems and positively impacting people’s lives than any other institution. Entrepreneurship has become the channel through which we can build solutions, challenge inequities, and create something that serves people and the broader economy.” Just as she and Josh have done. “Knowing that we’ve built something that makes a real difference in people’s lives – that’s the achievement that matters most to me.”