- Take care of your Debt + Business Success + Live Stress Free
Are you in a Tax Debt Spiral?
Tax debt can spiral out of control very easily. The debt may even double in size within a few years due to use of money interest and late payment penalties applied by the Inland Revenue. Due to this it can cause businesses to start playing catch up while actually never being able to be up to date with their tax obligations.
IRD’s responsibilities to debt collection
It is the duty of the Commissioner of Inland Revenue to collect the highest net revenue that is practicable with the law. (Section 6A(3) Tax Administration Act 1994)
So if you are in tax debt you can expect to get plenty of notices from the IRD and sooner or later they will instigate debt collection action. Debt collection might involve placing a deduction notice on your bank account, asking your employer or customers to deduct an amount and pay towards your taxes or a notice of legal action.
How to get out of Tax Debt
Tax Debt is a complicated area hence we advise seeking professional help. Even though the Commissioner has the duty of collecting the highest revenue over time and to protect the integrity of the tax system, they have to balance this with the care and management rules. The Commissioner has to consider the effect of any collection action on the taxpayer.
In certain situations the Commissioner may be able to provide assistance to the taxpayers if they are not able to pay on time. Depending on the circumstances the Commissioner has the power to write of the tax debt, remit interest and penalties or enter into an installment arrangement.
How we can help
We have a lot of experience working with the IRD. We can assist you by:
doing a comprehensive review your tax debt
preparing and submitting a tax relief proposal
asking for a full write off where circumstances permit, such as serious hardship
negotiating the settlement of your tax arrears
setting up an installment arrangement
Contact us now if you are serious about getting your tax debt sorted.
Overdue Tax Returns
Weather you have to file a few GST Returns or a few years of income tax, GST and PAYE returns outstanding we can help.
It’s easy to get behind filing your tax returns when you are busy running a small business. Let us take care of this for you. We can help get you up to speed on your tax filing obligations and also do your ongoing taxes.
In cases where incorrect returns have been filed we can prepare correct returns and do a voluntary disclosure to the Inland Revenue.
By doing a voluntary disclosure you show your intent to correct past mistakes and IRD view this favorably. You are also eligible for a shortfall penalty reduction. It also helps with any tax relief application.