GRA Blogs

Articles by John Rowe

I Have Debt With The IRD

AUTHOR: John Rowe

POSTED: 13 March 2014

In March 2013 I wrote a blog about the heavy handedness of the IRD, and that their tactics were the leading cause of bankruptcy in New Zealand. At GRA we have noticed that these tactics are getting markedly worse, and we are seeing significantly more IRD-led prosecutions.

How you react when the IRD is breathing down your neck will have a major influence on the outcome. Our most vital piece of advice is:

Don't try and deal with it by yourself. Get professional advice before approaching the IRD.

If you don't take professional advice and consequently don't deal with the situation strategically, you open yourself up to additional penalties. The whole thing can quickly spiral out of control, with the IRD baying for your business, your personal assets, and probably your firstborn as well if they could.

Professionals on the other hand, understand how best to deal with any sticky situation you may be in, and are aware of alternatives that you may not know about (e.g. debt remission).

Many people facing problems with the IRD try to minimise their fees, and so won't ask for help. This is a false focus, because it limits options and can lead to significant issues. At GRA we don't charge our accounting clients for phone calls and quick meetings, so at the first sniff of trouble, put your hand up and ask us for help.

Plan for upcoming tax payments
There are two tax payments due shortly, one on April 7th and the next on May 15th, so you need to budget for those. If you don't think you have the resources to pay them, or you will need to borrow money to do so, talk to us, because there are options available to you (such as tax financing where you can defer payment for up to 12 months).

If you'd like help with planning your tax payments, or if you are already behind, contact us online, or call us on +64 9 522 7955 or email info@gra.co.nz. Don't wait, do this now.

Request a Meeting

John Rowe
Director
Business Accounting Services

09 522-7955

jr@gra.co.nz

© Gilligan Rowe & Associates LP

Did you like this article? Subscribe to our newsletter to receive tips, updates and useful information to help you protect your assets and grow your net worth. We're expert accountants providing expert advice to clients in NZ and around the world.

Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.

Comments

Testimonials

Property School has well thought out curriculum and content. I enjoyed the plain speaking of the presenters and finished the course feeling very motivated. - Peter, April 2018

Seminars and workshops for property investors, business owners and anyone seeking to create and protect their wealth.

View all our upcoming events

Learn More

Investing in residential property?

Put this at the top of your reading list.

If you're investing in residential property, seeking to maximise your ability to succeed and minimise risk, then this is a 'must read'.

Matthew Gilligan provides a fresh look at residential property investment from an experienced investor’s viewpoint. Written in easy to understand language and including many case studies, Matthew explains the ins and outs of successful property investment.