IRD here to help

Kudos to the IRD for their attitude:

If putting off paying tax is what a company needs to do to survive, then it should, the Commissioner of Inland Revenue says.

is urging businesses to get in contact at the earliest opportunity if they are having trouble meeting their tax obligations.

Bob Russell said the department could ease the burden in a number of ways, such as agreeing to payments in instalments and waiving penalties.

Tax payments can be challenging for some businesses, especially that you often have to pay tax on income before you have always received it all.

However be aware you will still have to pay interest, and IRD interest will be more than what you can borrow comercially for.

IRD charged use-of-money interest – currently 9.73 per cent, having dropped from 14.24 per cent as part of the Government’s small-business relief package – and it was not opposed to companies considering that as a banking facility if they needed to for a time.

“In fact we might think that that’s a good strategy for them if they come and talk to us and get into an instalment arrangement,” Russell said.

“We’re prepared to wait a little while, the interest will accrue but the penalties can be turned off while they do the things they need to do to survive and get past their difficult time.”

Very reasonable.

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