Expect to be chased for even small tax debt, IRD says
Inland Revenue says even people with relatively small tax debt can expect to get a phone call about it.
The tax department is cracking down on overdue tax as it tries to pull in an estimated $10 billion in tax debt.
It said it had started calling customers with overdue GST and employer tax, even if they were at relatively small amounts, because it wanted to stop the debt getting larger.
Since 9 October, it has been calling people with debt of at least $1000, that is between six months and five years old.
It said it would tell customers what they owed and point out the penalties and interest that could be charged.
People who owed more than $10,000 would get a warning about the potential legal consequences.
Customer segment leader Tony Morris told RNZ's Checkpoint that IRD was ratcheting up the pressure on people who owed tax, after a period of taking a gentler approach.
People who did not respond to the call could be visited.
If none of those options worked, the department could take money fro bank accounts or start insolvency proceedings.
Since mid-June Inland Revenue has sent out 16,500 notices about planned bank deductions - 25 percent more than for the whole of last year.
Between mid-June and September 30, 8181 deductions were completed with $17 million of debt recovered.
While some accountants told RNZ that the heavier-handed tactics were hard for businesses that were struggling in tough economic times, Morris said there was also support for the increased collection efforts.
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Poll: Should we be giving the green light to new mining projects? 💰🌲
The Environmental Protection Authority announced this week that a proposed mine in Central Otago (near Cromwell) is about to enter its fast-track assessment process. A final decision could come within six months, and if it’s approved, construction might start as early as mid-2026.
We want to know: Should mining projects like this move ahead?
Keen to dig deeper? Mike White has the scoop.
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53.3% Yes
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46.7% No
Auckland, why are we so excited about a new store? 🚗🛒
I think we’ve all seen the traffic notices and headlines about the new IKEA by now!
So here’s the question: why do we get so excited when a new store opens? Convenience? Curiosity? A reason for a weekend outing? We’d love to hear your thoughts!
Keen for an update? The Post has you covered
Aucklanders, we want to know: How are you feeling about the current property market?
New Zealand homeowners are now more likely to sell at a loss than at any time since 2013, and if you’re in Auckland or Wellington, the odds are even higher.
But there is a silver lining: buyers are still in a strong position when it comes to negotiating prices.
So we’re curious…
How are you feeling about the current property market?
If you’re keen to dive into the details, Deborah Morris breaks down all the latest insights.
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