IRD Targets Overdue Tax Debt and the 3 Freedoms of Business
IRD targets overdue tax debt
Inland Revenue has begun to take more action on outstanding tax debt. In the last 24 months it had dialed back on prosecutions for tax debt, but in recent weeks it has stepped up and those accountants involved with corporate liquidations have seen much more activity with Inland Revenue pursuing tax debt
The IR is giving priority to collecting GST and PAYE as these are held in trust by companies who receive the tax upfront but on behalf of Govt. As always, the key thing to do if you run into trouble is to talk to the Inland Revenue and for our clients we are very happy to help you do this. At the IRD as soon as a debt becomes greater than $10000 the IR’s research shows that this is the debt level at which some companies begin to struggle to keep up to date with payments.
The Inland Revenue is very reasonable to deal with, by being upfront early, putting all your cards on the table you can hope to get a reasonable hearing. Yesterday Tax and Trust was able to achieve a write off of $652 in GST late payment penalties for a client that unintentionally hadn’t paid on time and was just a few days late – but write offs are not guaranteed and definitely all write offs do depend upon individual circumstances.
It is remarkable how much less stress you have once you have spoken to Inland Revenue and have an arrangement that you can afford. As I said above everyone’s situation is different, the key factor is being willing early on to deal with the issue
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The 3 Freedoms of Business
An introduction to the 3 Freedoms of Business.
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