Tax debt is increasing for businesses around the country. Now is the time to make sure your business is on top of things...
Economic uncertainty and the cost-of-living crisis have meant businesses across New Zealand have been doing it tough in recent times.
Inland Revenue says that around two thirds of all tax debt is owed by small business, sole traders and contractors.
As at June 2025 $3.3b was owing for GST – which is 15% higher than June 2024 whilst $2.0b was owing in Employer taxes which is 34% higher than in June 2024.
A significant portion of this is PAYE and GST, which should simply be passed on to Inland Revenue, so more work is being done now to get that money collected.
Inland Revenue has also significantly increased its investigations and auditing, focusing on those actively trying to avoid their taxes. These actions are sometimes prompted by tip-offs from various sources.
If you or your business are facing challenges with tax debt, it’s important to reach out to Inland Revenue early. Addressing the issue promptly can help you avoid further penalties and interest.
There are a range of options to help:
Inland Revenue has published easy to understand advice to help you get it right -https://www.ird.govt.nz/pages/campaigns/get-it-right
If you are newly in business check out Inland Revenues Free Business Seminars – available In-person and online across the country. Topics include: an Introduction to Business, GST, and Employers. You can book into a seminar on their website. https://www.ird.govt.nz
You can use your myIR account to make a payment by selecting the ‘Make a payment’ link for each overdue tax type, or go to https://www.ird.govt.nz/managing-my-tax/make-a-payment
And you can set up an instalment arrangement if you’re unable to pay the full amount: https://www.ird.govt.nz/managing-my-tax/make-a-payment/ways-of-paying/instalment-arrangements. You can also use myIR for this.
If you need to talk with Inland Revenue about your overdue returns or debt you can contact them by sending a message in MyIR or call on 0800 587 244.
