Negotiating with the Inland Revenue Department (IRD) in New Zealand can be a daunting task, especially if you are not familiar with the tax laws and regulations in the country. However, with the right approach and knowledge, you can effectively negotiate with the IRD and potentially reach a favourable outcome.
The first step in negotiating with the IRD is to understand your rights and obligations under New Zealand tax laws. It is important to know what you are entitled to and what you are required to do in order to comply with the tax laws. This will enable you to make informed decisions and to communicate effectively with the IRD.
The next step is to gather all relevant documents and information that will be needed to support your case. This includes financial statements, receipts, invoices, and any other documents that will help to demonstrate your financial situation and support your claims. It is also important to keep accurate records of all communication with the IRD, including dates, times, and the names of the people you have spoken to.
When communicating with the IRD, it is important to be upfront about your situation. We have found that when presenting a proposal to IRD for consideration, it is critical that it is accompanied with supporting financial information that demonstrates that the proposal can be sustained (by the company or individual) and is unlikely to place current tax compliance at risk.
The IRD is more likely to work with you if they believe that you are being open and are willing to cooperate. Accordingly, we recommend explaining in detail the reason(s) the company or individual fell into debt with IRD in the first instance, and the steps that have been taken since then to ensure they do not fall into debt in the future again. It is beneficial to attach supporting documents, where such documents are available. It is also important to remember that the IRD is a government agency, and their primary goal is to ensure that all taxpayers are paying their fair share of taxes. Therefore, negotiation should be approached in a professional and respectful manner.
It is also important to be prepared to compromise. The IRD may not agree to all of your requests, and you may need to make some concessions in order to reach a resolution. However, the IRD is also under pressure to collect taxes and may be willing to make concessions in order to reach a resolution in appropriate circumstances.
If you are unable to reach a resolution with the IRD, you do have the right to review its decision using the disputes process at IRD, which includes independent experts at its Disputes Review Unit (DRU) to undertake a review of your case and make a decision about your dispute. If the DRU decides in IRD’s favour, you may decide to take your case to the Taxation Review Authority or the High Court.
In conclusion, negotiating with the IRD in New Zealand requires knowledge of the tax laws, specialist negotiation skills and a professional attitude. With the right approach, you could potentially reach a favourable outcome and avoid any unnecessary penalties or fines. It is important to remember that where possible, the IRD will try to help you, so do not be afraid to ask for assistance or guidance if you need it.
Whether a reduction of debt owed to the IRD can be achieved depends on various circumstances associated with the non-payment of tax, position of the debtor and other factors.
Our experts at Norling Law have extensive experience negotiating with the IRD. If you would like further information in relation to negotiating a settlement of your outstanding tax debt with the IRD or require specialist assistance with it, contact the team at Norling Law at info@norlinglaw.co.nz or you can book a consultation here: https://calendly.com/wendy-506/30min.
Brent is the Director of Norling Law. He has a wealth of experience in the District Court, High Court, Court of Appeal and Supreme Court. Brent is passionate about negotiating favourable outcomes for his clients and able to implement this in his daily negotiations.
Anna practices in the area of commercial litigation and has appeared as Counsel in the District Court, High Court and the Court of Appeal, having successes in all Courts. Anna has a special interest in corporate, insolvency and relationship property law.
Wendy has over 20 years’ experience in civil litigation in New Zealand with a main focus on construction, insolvency and debt recovery and security enforcement.