Accounting & It Consultants

11/08/2026

https://www.facebook.com/share/1H276CW9jR/

Inland Revenue needs to be asking questions about how billions of dollars in tax debt has been allowed to accumulate, one economist says.

01/07/2026

⚠️ WARNING TO BUSINESS OWNERS OVER UNPAID TAX
Inland Revenue (IR) has sharply increased enforcement against businesses with unpaid tax, leading to a surge in liquidations and formal wind‑up applications.

📌 KEY POINTS
• 316 businesses were targeted for liquidation in the first four months of 2026 — almost double 2023 and six times 2022
• In 2025, IR filed 893 wind‑up applications, more than twice the previous year
• IR received extra funding to increase audits and debt recovery after tax debt hit $9.3 billion
• IR is taking targeted action against:
– Businesses with significant tax debt
– Those who repeatedly fail to pay
– Those who do not engage with IR

❗ WHY IR IS CRACKING DOWN
Unpaid tax:
• Creates an unfair advantage over compliant businesses
• Reduces revenue needed for public services

🔍 WHAT ENFORCEMENT LOOKS LIKE
Experts report IR actions now include:
• Phone calls and follow‑ups
• Bank account garnishing
• Forcing liquidation in severe cases

When IR takes funds from a business bank account, it often empties the account, leaving the business in a vulnerable position.

🧾 ADVICE FOR BUSINESS OWNERS
Ignoring tax debt is risky. Experts recommend:
• Engage early with IR — ideally before the due date
• Keep filing returns, even if you cannot pay
• Prioritise PAYE — failing to pass on employee deductions can lead to penalties or prosecution
• Businesses can request:
– Instalment arrangements
– Interest & penalty remissions
– Negotiated payment plans

📉 WIDER IMPACT
Company liquidations rose 17% in the year to April, driven by:
• IR enforcement
• Construction slowdown
• Hospitality sector closures

Although IR wind‑up applications dipped slightly in May, overall liquidation numbers remain at record highs due to other creditors.

🔑 BOTTOM LINE
New Zealand businesses — especially those under financial pressure — should proactively deal with tax debt. IR is now well‑resourced, highly active, and increasingly willing to liquidate non‑compliant firms.

29/05/2026

NZ Budget 2026 – What It Means for You (A "Brave Budget" in an election year?)

The Government has released Budget 2026, and while there are no major tax cuts, there are several important updates that affect individuals, investors, and businesses.
👉 Here are the key takeaways:

👤 Individuals
No changes to tax rates
No new tax relief
“Bracket creep” still applies (you may pay more tax over time)

🏘️ Investors
Easier tax rules for overseas shares
FIF threshold increased to reduce compliance

🏢 Business Owners
Simpler Fringe Benefit Tax (FBT) – no more vehicle logbooks
Reduced compliance and admin burden
R&D tax incentives improved

💼 Charities
Updates to tax rules to improve transparency and integrity

🏦 Financial Sector
New levy on banks to fund regulation (not taxpayers)

✅ Overall:
This is a “steady” budget focused on simplifying tax rules and improving the economy — not cutting taxes. "Brave" budget by Government specially for an election year... that's a pretty bold move. Most election-year budgets include “sweeteners” (e.g. tax cuts, rebates, handouts)

📩 If you want to understand how these changes affect your personal tax, property investment, or business, feel free to message me.

Budget 2026 boosts funding for health, education and other essential frontline services and invests in the infrastructure Kiwis rely on. It is a responsible Budget that continues the progress made over the past two-and-a-half years to build an economy that will create more jobs and higher incomes.

05/05/2026

Run a business? Remember to: 1) Record and report all sales and income 2) Pay your tax bill on time. 3) Register staff and pay their PAYE. Don't risk it. Get it right.