Why Inland Revenue is taking money from bank accounts
Thousands of people have had money deducted from their bank accounts in recent months as Inland Revenue steps up its efforts to collect the tax it is owed.
IR spokesperson Rowan McArthur said it had sent out 16,500 notices about planned bank deductions since mid-June, 25% more than for the whole of last year.
"We are targeting customers who have repeatedly not engaged with IR; and those where information we have indicates there may be funds in their bank account(s) that could be deducted from to pay off existing tax debt."
He said IR was also working to get instalment payment plans in place.
"As with all tax debt, we welcome customers contacting us so we can work with them to resolve their debt situation."
Between mid-June and September 30, there had been 8181 deductions completed, which had recovered $17 million. There were another 6026 deductions in progress, which had collected $5.5m.
John Cuthbertson, Chartered Accountants Australia New Zealand tax leader, said tax debt had ballooned in recent years and the "softly, softly" approach taken over the Covid years meant many people were given significant leeway with their tax bills.
"Tax debt as of March was $9.3 billion. When you think about it that's a significant amount of money. If you look at Budget 2024 and 2025, funding was allocated specifically for IRD to be more aggressive in terms of audit activity… debt is the focus and they certainly don't want to let it get any larger."
He said some of the debt was quite old and some IRD was trying to collect quickly before it became non-collectible.
IRD also had the power to apply to have money taken from people's wages if they were employed, he said.
"It's in people's best interest to get on top of their debt as early as they can and communicate. But we've had situations where employers or companies have used Inland Revenue as a bank by not paying some of these core taxes like GST and their PAYE - that's held on trust for the Crown. That means they've been living beyond their means, really."
Some accountants told RNZ it seemed people were only given a week's notice before money was taken, and it was tough for some businesses that were struggling.
Deloitte tax partner Robyn Walker pointed to Inland Revenue guidance that said people would typically have received advice about the amount that was past due and a warning letter.
That noted that, since its system upgrade, Inland Revenue had more information from a wider variety of sources, which allowed it to be more proactive.
"Inland Revenue also did a systems upgrade [recently] so that the MyIR system more prominently shows any tax debt when people log in. I've heard some feedback that some people think it feels aggressive," she said.
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Neighbourhood Challenge: Who Can Crack This One? ⛓️💥❔
What has a head but no brain?
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Poll: 🗑️ Would you be keen to switch to a fortnightly rubbish collection, or do you prefer things as they are?
Aucklanders, our weekly rubbish collections are staying after councillors voted to scrap a proposed trial of fortnightly pick-ups.
We want to hear from you: would you be keen to switch to a fortnightly rubbish collection, or do you prefer things as they are?
Keen for the details? Read up about the scrapped collection trial here.
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83.3% Same!
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16.7% Would have liked to try something different
7 tips for buying your Christmas ham
It’s the centerpiece of the Christmas table, so when you’re peering into the supermarket chiller or ordering from the butcher, choosing the perfect ham can feel like a daunting task.
Here are some things to keep in mind when choosing one to bring home with you.
1. What type of ham to buy
You’ve got some decisions to make when it comes to the type of Christmas ham you’re going to buy.
Cooked on the bone (COB) ham is the traditional Christmas ham. If you’re buying a half ham, you’ll have the choice of the shank or fillet end. The shank is the part with the bone sticking out that gives the ham that traditional look. The fillet end is the round part that gives more meat. If you’re deciding whether to get a whole ham or half, consider how quickly you’ll be able to eat it all. You only have about a week to eat an opened ham before it will go off, so it can be a good idea to get two halves. That way you can eat one half during the week of Christmas and save the other for January.
Champagne ham has had the bone removed and only has the hock left on, so it’s easier to carve.
Pressed ham – also known as continental ham – has had the bones removed and has been pressed, so it’s also easy to carve.
2. Check the pork percentage
The label on a packaged ham will say what percentage is actually meat. Hams are injected with brine, to keep them moist, and additives. The brine injection level for manufactured hams is usually between 10% and 35% of the ham's weight. A manufacturer that wants to produce a cheap ham will add more water to bump up the weight.
3. Know how to tell if it’s New Zealand pork
By far, most of the hams bought in New Zealand this Christmas will be from pigs reared overseas. New Zealand imports pork from about 25 countries. It’s frustrating for New Zealand pig farmers because this ham can come from farms that don’t have to meet the same animal welfare standards as we have in this country. As a result, overseas meat is often cheaper.
If buying New Zealand pork is important to you, look for:
words on the packaging like ‘New Zealand pork’ or ‘born and raised in New Zealand’
4. Have a good look at the ham
If you’re going to be glazing your ham, look for one that is covered in a finger-thick layer of fat. This will give you the thickness you need to make good score lines.
New Zealand Pork’s website also advises looking for a ham that has a meaty texture rather than one that looks wet or rubbery. It says the ham’s skin should be smooth with even colouring. “If the knuckle is sunken, it may be overcooked. If the rind is buckled or uneven, it may be a sign of dryness.”
5. Ask a lot of questions
If you’re ordering your pork from a butcher, you probably won’t be able to compare hams like you would at the supermarket. So, make sure you ask lots of questions, now that you know what you’re looking for.
You could ask:
Is the ham made from New Zealand born and farmed pork?
What will be its injection percentage?
What flavours will it have?
You could even ask if there’s a glaze the butcher thinks would work particularly well with those flavours.
6. Know what size you’ll need
If the ham is the only meat on your Christmas menu, New Zealand Pork advises allowing 1kg of ham for five people. Or if you’ve got other meat options, 1kg will feed about six to eight people.
7. Know the best hams in New Zealand
The best hams of the year were awarded at the 100% New Zealand Bacon & Ham Awards earlier in the year so you can check out which ones got medals. Some of them are only available in the city the butcher is based, but a Farmland boneless ham available nationwide won a gold award and Woolworths bone-in and boneless hams picked up bronze.
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