Inland Revenue (IR) says even people with relatively small tax debt could expect to receive a phone call chasing them up for it as part of a new effort to stop them spiralling out of control.
The department started phoning some taxpayers on October 9, targeting people with more than $1000 in overdue GST or employer tax dating back between six months and five years.
It said in a statement that most customers stayed on top of their tax.
“But for those who don’t Inland Revenue wants to be clear – ignoring debt will only make things worse.”
Customers would be advised of the amount of overdue debt they owe, as well as the mounting penalties and interest.
“We want to encourage customers to either pay their debt in full or set up an instalment arrangement,” a spokesperson said.
Those with larger debts, more than $10,000 in GST or employer obligations, would be reminded of the potential legal consequences of ignoring them.
If customers don’t respond to phone calls, IR may visit them in person.
In some cases, the department can take money directly from bank accounts or initiate insolvency proceedings.
Since mid-June, IR had sent out 16,500 notices about planned bank deductions — a 25% increase on all of last year.
In the same period, it had recovered $17 million from 8181 completed deductions.
Entities must register for GST if they carry out a taxable activity and their turnover was at least $60,000 in the last 12 months, expected to be at least $60,000 in the next 12 months, or if they carry out a taxable activity and add GST to the price of goods and services sold.
The morning’s headlines in 90 seconds, including the return of all living hostages from Gaza, Te Pāti Māori hits back at a former ally, and a try scoring machine on his way to the Warriors. (Source: 1News)
