Arrests up for unpaid tax
We’re not a huge fan of the f-word (unless it’s fine champagne) but we’re hearing it a lot right now from those keen on playing that extreme sport called “not paying tax on time”. The tax department has been getting serious about unpaid tax for a while now by reassigning masses of staff to focus on tax arrears. On top of that, arrest warrants are at record levels which should be mildly terrifying for anyone with chunky unpaid tax bills because there’s no magic button you can push to stop a police arrest.
Debt collectors are in on the action too which, apart from creating soiled underpants, is likely to destroy your credit rating. Debt collection has just become a whole lot easier because the old excuses are no longer viable, about every director not being notified or a lack of reasonable effort.
If you happen to be in this ‘icky’ situation here’s the smart way to stop it escalating to handcuffs:
When you log into the IRD website (myIR account) you’re likely to see a brand new shiny, and very scary, section headed up ‘Debt Collection’.
If you’re smart you’ll start checking your myIR accounts daily from here on in. The IRD website can be tricky to navigate but have a darn good nosey in the parts where letters and messages hang out. You’re hunting for any signs of a formal ‘Notice-of-Intent’.
The Notice of Intent gives you 30 days to show “positive action” and although that sounds a tad airy-fairy it means ghosting isn’t an option. Talk to the IRD. And then talk some more. But don’t babble on about financial hardship because that normally ends in Liquidation.
Setup an instalment arrangement fast. Make the instalments affordable because if you miss the instalments you’ll blow it creating a case for collections, which is a little like landing on the dreaded ‘go to jail’ spot in the game of Monopoly.