We know that managing cash flow can be a balancing act, and sometimes tax payments don’t go quite as planned. To help you stay in the loop, we wanted to share some recent updates from IRD regarding how they manage overdue tax.
Since 2017, IR has been able to share information about significant unpaid tax with credit reporting agencies (like Centrix). Recently, they’ve introduced a new pilot program to make this process clearer and to encourage businesses to get in touch earlier if they’re having trouble.
What does this mean for you?
The main goal of these changes is to ensure businesses are aware of their situation so they can take action before it affects their credit rating. Here are the simple facts:
Communication is key: IRD will now send a "Notice of Intent" via courier and upload it to your myIR account. This starts a 30-day window for you to respond.
A "Positive Step" is all it takes: You don’t necessarily have to pay the full amount immediately to stop the reporting process. Simply reaching out to set up an instalment arrangement or a payment plan counts as "positive action" and keeps your credit record clear.
Who does this affect? This generally applies to more significant amounts—specifically debt over $150,000, or debt that has been overdue for a year and represents a large portion of the company’s income.
Our Top Tips for Peace of Mind
To make sure you’re never caught off guard, we recommend a few simple habits:
Keep your "Registered Office" address current on the Companies Office website: This is where IR sends physical notices, so it’s important they can reach you.
Check your myIR: Make it a habit to log in occasionally and check for notifications.
Chat with us early: If you see a bill you’re worried about, let’s talk! It is much easier to set up a plan with IRD before things become urgent.
The big takeaway? IRD just wants to hear from you. As long as you’re engaging and have a plan in place, you can keep your business’s credit healthy and stay focused on what you do best.
