Helping You Achieve the Freedoms of Time, Money and Peace of Mind
Managing Tax Debt
June 10, 2021
Chris Lynch, CA, Managing Director
It’s always important to manage your tax so that – as far as possible – you don’t owe overdue tax and you aren’t incurring penalties and interest because of it. If any of these applies to you, it’s important to act quickly and talk to us:
- if the due date is coming up to pay your tax and you think you won’t be able to meet your obligations
- if you have a debt owing to Inland Revenue and penalties have started to accrue
- if your business has been affected by COVID-19 and this is still affecting your ability to pay your tax
If Inland Revenue hear from you, they may be able to stop penalties on any overdue amounts.
For businesses affected by COVID-19, Inland Revenue acknowledges that many customers are under increasing financial pressure to pay their taxes in full and on time.
Inland Revenue has discretion to write-off penalties and interest, but taxpayers need to contact them to tell them the situation and make a plan to manage their tax.
If you already owe overdue tax but COVID-19 made things worse, it may be possible to negotiate a partial write-off. Let us know about your situation as soon as you can.
Chris Lynch, CA