Can't Pay Your Tax?

The IRD doesn't take IOU's

The Inland Revenue Department recently advised that taxpayers who have not met their tax obligations by the due date can expect to be issued with a deduction notice.

This allows the Department to withdraw outstanding tax directly from the taxpayers bank account.

Can they Do that?

In the event that tax is not paid, the Department will contact taxpayers and give them an opportunity to pay. If the tax payer fails to act by the agreed date, a deduction notice is sent to the bank requesting payment and a letter is sent to the taxpayer advising of the deduction from their bank account.

What to do if you can't pay

If you are unable to pay your tax, it is important to contact the IRD immediately. You can contact them directly or we can do this on your behalf.

More often than not the Department are willing to make an instalment arrangement which can also result in a reduction of penalties and interest that might otherwise be charged.

What happens if I break the arrangement?

Failure to adhere to the arrangement means that the full amount of tax, including penalties and interest becomes due immediately.

Once again, if you can't pay, contact the IRD - after all - it's their job to be fair.