IRD Crackdown on Tax Debt
Lately, we’ve heard stories about IRD getting tough on people who owe tax. It’s no surprise. According to RNZ, Kiwi businesses now owe over $1.4 billion in unpaid GST and PAYE. The government is clearly applying pressure to get that money back.
However, what we are seeing and hearing from other accountants is that they are targeting small to medium businesses rather than large companies that owe millions. Perhaps this is because smaller debts seem more attainable to recover.
We’ve heard stories of IRD contacting employers directly to inform them that an employee has tax owing and taking money directly from people's bank accounts.
Managing Your Debt
If you have outstanding debt, we strongly advise you to address your debt before IRD gets in touch. In our experience, IRD is more helpful if we contact them first and explain the situation, rather than them having to follow up.
There are several options available for paying off debt:
- Payment plans
- Credit card
- Online banking
- Over the counter at your local bank
If you have overdue tax payments and find it difficult to put money aside each month to cover this cost when it’s due, we can help you set up a payment plan that allows you to pay IRD on a more regular basis.
We recommended preparing a budget each financial year so you can keep track of how your financials are tracking and put a plan in place that you can stick to.
If you are a bit behind in your tax payments, we can help with this, too. The worst thing you can do is bury your head in the sand and not address the issue.
Don’t Ignore Your Tax Debt!
Avoid the stress and potential penalties of unpaid taxes by addressing your debt head-on. We are here to provide advice, support, and practical solutions to help you navigate your financial obligations.
Contact Us
Reach out to us for assistance with setting up a payment plan or any other tax-related concerns. The worst thing you can do is ignore the problem. We can help you take control and find a way forward.
Call us at 07 548 2667 or email info@omokoroaaccounting.co.nz
