IRD Disputes & Resolutions

Tax debt problems are extremely stressful until it is resolved with the Inland Revenue Department. It is stressful because it is not just civil liability of the tax debtor. In some cases, it can result in criminal liability also. Those who have been convicted of tax evasion can be liable on conviction to imprisonment. The IRD does prosecute tax evasion from time to time. As such, it is important to get on top of tax problems quickly.

Whatever the tax position, talk to us. We can assist with:

• Assistance with tax compliance reviews, IRD audits and liaison.

• Negotiating resolution of arrears in tax, such as GST, PAYE, Income Tax.

• Dealing with and responding to letters of demand from the IRD.

It is important when dealing with the IRD to resolve tax debt problems that the tax debtor:

• Does not lie.

• Is meaningfully communicative.

• Is transparent.

• Align the tax debtors situation with the tax regime in order to get the most advantageous outcome.

• Use an expert to negotiate with the IRD. By doing so, the tax debtor increases the chances of better outcomes. Cheap can be expensive.

Tax Pooling

Tax pooling is an IRD-approved service offered by our partner, Tax Management NZ that alleviates some of the provisional tax system’s challenges.

It does this by offering another way for taxpayers to pay their income tax.

One of the big problems with provisional tax is IRD expects payments to be made on dates it sets – no matter when a business earns their income or the state of their cashflow. They will charge late payment penalties for failure to pay on time.