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, call us on +6495227955 or email info@gra.co.nz. Don't wait, do this now.