What the latest credit reporting changes mean for your business.
Inland Revenue (IRD) has updated its approach to how and when unpaid tax is shared with credit reporting agencies, which can have implications on your company’s financial standing. We’ve compiled an overview of the latest changes, and what they could mean for your business.
What Has Changed?
From October 13, IRD has begun testing a pilot programme that adjusts the notification and reporting process for selected businesses with outstanding debts. Key changes include:
- Formal notification will be issued through the business’s myIR account, with a printed copy couriered to the company’s registered office
- Businesses will have 30 days to respond or make payment arrangements before credit reporting occurs
- The 30-day period starts from the date the notice is delivered to the registered office
- “Reasonable efforts” now include IRD sending its standard overdue reminders and repayment options, if the business has not engaged with IRD by this point, further action may follow
- IRD will notify the company only; individual directors will no longer receive separate notices
These updates streamline the escalation process and place greater responsibility on businesses to actively monitor their myIR accounts and act promptly when contacted.
What this means for your business
Credit reporting is a serious step with potential consequences for financing. Ensuring you are actively monitoring your myIR account and communicating with IRD routinely is the most effective way to avoid escalation.
We know that tax debt management and understanding credit reporting obligations can be challenging. Whether you’re managing a growing business or navigating tax issues for the first time, our team can help.
For advice or help surrounding these changes, feel free to get in touch with our team – details below!
