Are IRD Problems Over Tax Payments Solvable?
In most cases they certainly are. Not only that, the resolutions we bring about almost invariably (1) bring huge relief to our clients and (2) are resolutions our clients would not have thought were in the realm of possibility. Without a doubt the penalties and interest IRD imposes on late payments of tax arrears are vicious. However if IRD did not ‘overcharge’ large numbers of people would not pay their taxes. For instance if IRD did not charge interest that was higher than the banks people would use IRD as a bank. For instance, if people like property developers could have the use of money they should have paid to IRD for overdue taxes, at a lower rate than what the bank would charge them, then they would use IRD’s money.
The problem is that people like you who are not deliberately evading paying their overdue taxes are caught in their net. There are most probably genuine reasons why you haven’t paid your tax arrears – these could range from health reasons, downturn in the economy, bad business decisions, broken relationships, money you haven’t received for work you have done, loss of a close relative etc etc.
If you are in trouble with IRD over unpaid taxes it is VERY serious. It is important that you resolve the issue as quickly as possible. As explained above it doesn’t take long for the tax debt to get completely out of hand due to IRD’s penalties and interest on late tax payments and late tax returns. There are different penalties and interest charged on overdue Income Tax Debt, overdue GST Debt and overdue PAYE debt. There also different additional penalties for late filing of Income Tax Returns, GST returns and PAYE Returns.
Why Can’t I Just Ring IRD About My Tax Problems – Tell Them My Plight and Ask Them to Please Make It All Go Away?
It would be good if you could just ring IRD about your tax problems and tell them the particular reasons why you have unpaid taxes and persuade them to let you off your tax debt. For obvious reasons it doesn’t work like that. Otherwise every Tom, Dick and Harry would be ringing IRD to explain why they shouldn’t have to pay their tax arrears. Your problem with overdue taxes which you have no way of paying is actually a legal problem. IRD is not allowed to let you off in this manner even if they wanted to or because they feel sorry for you because Tax Legislation will not allow them to do this (except for very small amounts). For this reason you need a Tax Specialist experienced in dealing with your type of Tax Problem. There is a whole series of procedures that must be followed otherwise the result you are hoping for will not happen – the only result you will get is what you are getting now – pain!