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 collectora have it much easier now because the old excuses won’t wash anymore (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:
You may’ve already missed a couple of calls from the IRD. They’ll only call twice so it’s important you’re brave and answer their calls.
Next you may experience horror movie chills when you log onto the IRD website (myIR) and see a terrifying new section for ‘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 ‘go to jail’ spot in Monopoly.
If you’re determined to ignore all of this, perhaps stock up on chocolate cookies because the IRD will visit you in person next. Play nice because if the home visit doesn’t go well, the story typically ends with insolvency proceedings (eek).
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