New Zealand’s Inland Revenue (IRD) has significantly intensified its debt collection activity, signaling a clear end to the lighter touch used during the pandemic. With the nation’s overdue tax debt estimated to be around $10 billion, the department is now moving "full throttle" to recover these outstanding amounts from both individuals and businesses.
The IRD's compliance efforts are proving highly successful. Latest reports show a remarkable return, with the IRD pulling in almost $12 for every dollar spent chasing overdue tax, a substantial increase from previous years. This momentum is supported by new funding and a sharp focus on high-risk sectors like property non-compliance and the 'hidden economy.' Enforcement actions are increasing rapidly; in the past year, the IRD issued over 88,000 deduction notices to bank accounts and opened more than 7,600 audits.
An IRD spokesman commented on the strategy: “These results mean fairer outcomes for taxpayers and stronger confidence in the tax system. Our focus will continue to expand into high-risk sectors to protect honest businesses and ensure everyone pays their share.”
If you are struggling with tax obligations or find yourself being aggressively pressured by the IRD to pay outstanding debts, remember you have options and don't have to face them alone. Better Business and tax can assist you by stepping in to handle negotiations, explore installment arrangements, and manage financial relief applications to ensure you reach a fair and manageable resolution.
