Ignoring GST and tax debt won't make it go away

Inland Revenue has begun phoning customers with smaller overdue GST and employer tax balances to stop debts from growing into larger, harder-to-manage amounts.

These calls target people with more than $1,000 owing that has been overdue for between six months and five years. IR will highlight the mounting penalties and interest and encourage customers to pay in full or set up an instalment plan.

For GST or employer tax debts over $10,000, IR is also reminding customers of their obligations and the legal consequences of continued non-payment. If customers do not respond to phone calls, IR may visit in person. As a last resort, IR can deduct money directly from bank accounts or begin insolvency proceedings.

IR has recently increased the use of bank deductions, recovering $17 million between mid-June and 30 September. Customers can manage overdue amounts by responding to IR’s calls, making payments through myIR, or arranging instalments online.

If you are a client and require assistance, please get in touch with us.

Source: IRD