New Zealand Debt Solvers

02/04/2026

IRD Clamping Down on PAYE Default

Inland Revenue has issued Revenue Alert RA 26/01 (16 March 2026) highlighting that failure to remit PAYE deductions is a serious offence. Employers are required to pass on PAYE and related deductions (e.g. KiwiSaver, student loan repayments) by the due date. Failure to do so particularly where funds are knowingly used for other purposes may result in criminal prosecution.

The Alert reinforces that this is not merely a tax debt issue, but one of conduct. Persistent non-payment or using PAYE funds to finance business operations may lead Inland Revenue to treat the matter as enforcement rather than compliance, including prosecution of directors and those involved.

Penalties for breaches include fines of up to $50,000 and/or imprisonment for up to five years. Inland Revenue has made it clear that repeated or deliberate non-remittance will be actively pursued.

The key message is that early engagement is critical. Businesses must stop further non-compliance, ensure current obligations are met, and proactively engage with Inland Revenue with realistic repayment proposals. Delays or avoidance significantly increase the risk of escalation to enforcement action, including liquidation or prosecution.

18/03/2026

Minimum wages increase from 1 April 2026

The adult minimum wage will go up from $23.50 to $23.95 per hour

The starting-out and training minimum wage will go up from $18.80 to $19.16 per hour

All rates are before tax and any lawful deductions, for example, PAYE tax, student loan repayment, child support.

09/03/2026

Insolvencies has spiked

Analysis: New Zealand has been experiencing a striking rise in company failures, focusing attention on the role of directors when facing financial trouble.

02/03/2026

https://www.interest.co.nz/business/137441/inland-revenue-behind-most-company-liquidations-and-switching-between-big-4-banks

Inland Revenue behind most company liquidations, and switching between big 4 banks a key mortgage market driver, Centrix says

11/02/2026

IRD crackdown on unpaid tax debt plunges more businesses into liquidation

As New Zealand liquidations hit their highest levels since 2010, tax specialists say the days of Inland Revenue’s ‘softly softly’ approach are over.

13/11/2025

Passing of Companies (Address Information) Amendment Bill

A law which allows company directors to use an address other than their home address on the Companies Register has passed. New law will hide directors' addresses, but only in some cases, from the Companies Register if it poses a threat to their safety.

01/09/2025

More companies going into liquidation after increased enforcement by IRD

That's despite positive lending trends and eased interest rates.

12/08/2025

https://www.rnz.co.nz/news/business/569680/one-in-five-businesses-reporting-losses

Economists say the situation may become worse before it improves.

05/08/2025

IRD policy shift—move from leniency during Covid and a sharp return to aggressive debt enforcement.

The man behind Auckland's Kohi Beach Eatery and burger chain Downlow has had two more companies placed into liquidation with his businesses owing a combined $2m to the Govt.

09/04/2024

Tax will not go away unless you reach an agreement with IRD or liquidate your company
PAYE debts have serious implications of potential criminal prosecution action. You can’t be using PAYE money to run your business & manage your cashflow.
Running a company which it’s insolvent breaches your duties as a Director.
Please reach out to Tax Debt Management or Liquidation Management for advice & guidance

Those who don’t tackle their tax could face enforcement action and the possibility of prison time.

23/09/2021

Business Debt Hibernation

Business Debt Hibernation

Business debt hibernation is a government initiative created in response to COVID-19. It helps companies, trusts, and other business entities affected by COVID-19 to manage their debts.

Unfortunately, sole traders aren’t eligible for business debt hibernation.

Business debt hibernation helps you manage your debts.

• You set up an arrangement for your existing debts, eg paying your creditors only a percentage of what you owe them on time and delaying the rest.
• You get up to a month of protection while you set up the arrangement, meaning most creditors can’t enforce their debts, eg applying for your business to be liquidated.
• If your creditors agree, you get a further six months of protection.

You still need to pay off your debts in full. Business debt hibernation helps you manage your debts while you are protected but they don’t go away altogether. And it’s only for debts you already have. Any new debts will have the terms and conditions your creditors set. Some debts aren’t covered by business debt hibernation, e.g. employee wages and debts to secured creditors with a general security agreement.

Business debt hibernation reduces the burden of existing debts, so you can stay solvent and start trading normally again. For example, you might take a couple of months to get back up to speed, and then pay back the remaining debt over the following quarter. It’s a new option to consider alongside borrowing money, or processes like creditor compromises or voluntary administration.

We can organise business debt hibernation for you as there are several legal requirements. For example, you’ll need to complete several formal declarations and statements.