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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Scam Alert: Fake information regarding December Bonuses from MSD
The Ministry of Social Development is reporting that fake information is circulating about new ‘December bonuses’ or ‘benefit increases’
If you get suspicious communication, please contact Netsafe.
Poll: Are Kiwis allergic to “exuberance”? 🥝
In The Post’s opinion piece on the developments set to open across Aotearoa in 2026, John Coop suggests that, as a nation, we’re “allergic to exuberance.”
We want to know: Are we really allergic to showing our excitement?
Is it time to lean into a more optimistic view of the place we call home? As big projects take shape and new opportunities emerge, perhaps it’s worth asking whether a little more confidence (and enthusiasm!) could do us some good.
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41.8% Yes
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33.5% Maybe?
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24.7% No
Tips and advice to stay street smart this summer
Summer is finally here!
Time for BBQs, holidays, Christmas, travelling and events galore.
We've put together a whole range of tips and advice so you can put your feet up and relax this summer, knowing that it's all good in your hood.
Our first piece of advice to make your neighbourhood safer this summer, is to get to know the people who live around you! People who know each other are more likely to offer, accept, and ask for help when needed.
Shop Safe - Preventing Fraud & Scams
You might find yourself making more purchases than usual at this time of year, and many of those might be online, so here's a set of tips and advice to make sure you stay safe and secure whilst doing your Christmas shopping this year. And remember to think about the security of your online shopping when it gets delivered!
Heading away this summer?
It's a busy time of year on new Zealand roads and everyone wants to get from A to B safely. It's also important that your home stays safe while you're away enjoying your 'home away from home'. We have put together a set of tips and advice to help make that happen!
Keeping your car, home and belongings safe
From recording valuable possessions to securing locks, keeping valuables hidden and informing trusted neighbours that you will be away, there are many things you can do to keep your car, home, and belongings safe. Here's a bunch of handy tips!
Party planning checklist and fire-wise tips
Whether it’s a small backyard gathering, or a big celebration for a special occasion, a little extra planning and consideration will go a long way in keeping you, your guests, and your neighbours happy. We also have some tips to make sure you and your families stay fire-wise during summer.
Get to know your neighbours - look out, reach out, help out
The most important action you can take to make your community safer is get to know the people who live around you. People who know each other are more likely to offer, accept, and ask for help when needed.
It is also important to know who to contact in an emergency and when to use the non-emergency contact for NZ Police. Learn more about Neighbourhood Support, get tips on getting to know your neighbours and the best way to contact the police below.
Strong communities start with small hellos
In terms of crime prevention, your neighbours are the best and cheapest security system you can have. You don't have to love your neighbour, but at least get their number just in case!
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Have a happy, safe and connected summer!
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