Businesses owe more than $1.4b in unpaid tax
New Zealand businesses owe more than $1.4 billion in unpaid GST and PAYE from the 2025 tax year, in what commentators say is a sign of the stress many parts of the economy are still under.
Inland Revenue has provided a breakdown of PAYE and GST still unpaid for the tax years 2018 through to 2025.
There is still almost $48 million unpaid from 2018 - and $1.471 billion from the most recent year.
Of 2025's number, $432.9m relates to employer activities and $1.047b to GST.
Just over $66m of the debt was from businesses or individuals who were bankrupt or in liquidation.
Businesses collect GST on their sales and then send it to Inland Revenue when they file their GST returns.
Deloitte partner Allan Bullot had earlier warned that GST debt could be creating a wave of zombie companies.
Construction had the largest share of unpaid PAYE and GST, with a total of almost $1b over the tax years from 2018 through 2025.
Rental, hiring and real estate services was next with $533.5m.
On a measure of debt per thousand enterprises, electricity, gas, water and waste companies had the largest unpaid amount in the most recent tax year.
Robyn Walker, a tax partner at Deloitte, said Inland Revenue had been given a clear message to collect more of the money it was owed.
The number of businesses being liquidated by Inland Revenue has jumped in recent years.
Walker said the data could indicate that other creditors to those businesses were in a precarious position.
If a business failed, Inland Revenue would be the first to be paid, which could reduce a business' s ability to pay anyone else it owed.
"People could be choosing to pay other business suppliers first - but they maybe aren't paying anybody... there's potential for a lot of collateral damage if Inland Revenue is allowing tax debt to accumulate."
She said people who were not able to pay GST and PAYE should contact their accountant top make sure they still had a viable business.
If a business had hired staff on the expectation it could pay them a certain amount before tax, and it turned out that they could not afford the PAYE component, there was probably a bigger issue at play, she said.
"The business may not be viable or may need help in a more substantive way."
SImplicity chief economist Shamubeel Eaqub said the data highlighted the distress many businesses were facing.
"Some businesses - not many - think it's okay not to meet their responsibilities.
"PAYE and GST are only collected on behalf of New Zealanders, it's not your revenue.... there's a risk to other creditors."
He said businesses with tax debt were quite often not viable and owners could be breaching their directors' duties.
"It can mean big problems, that's why the IRD has been so active... it's the right thing to do."
The data showed Inland Revenue had written off $110.3 million of unpaid PAYE and GST in 2018, $109.1m in 2019, $85.5 m in 2020, $94.8m in 2021, in 2022, $99.3m in 2023, $56m in 2024 and $7.6m from the last tax year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
12 minutes ago
- Scoop
Heartland Bank Announces Two Senior Leadership Appointments
Press Release – Heartland Bank Heartland Bank Limited is pleased to announce two strategic appointments to its senior leadership team, reflecting the companys commitment to sustainable growth and digital transformation. Alistair Scott (Photo/Supplied) Rebecca Thomas (Photo/Supplied) … Heartland Bank Limited is pleased to announce two strategic appointments to its senior leadership team, reflecting the company's commitment to sustainable growth and digital transformation. Alistair Scott joins Heartland Bank in the role of Chief Auto & Asset Finance Officer. With over 30 years' experience in the automotive industry, Alistair most recently served as Managing Director for Jaguar Land Rover's Asia Pacific region, overseeing operations across 16 markets. His extensive expertise spans senior roles in sales, franchise management and business development across diverse markets including Asia, Latin America, Australia, and the UK. Rebecca Thomas will be taking on the role of Chief Digital Transformation Officer. Bringing more than 25 years of experience in technology, data and enterprise transformation, Rebecca's career spans multiple industries including insurance, engineering, government and professional services. Recognised as one of the country's top Chief Information Officers from her time at PwC New Zealand, she brings deep expertise in technology operations alongside a strong focus on AI and data-driven initiatives. 'I'm delighted to welcome Alistair and Rebecca, who will be instrumental in driving our vision to innovate, grow and continue meeting the specialist banking needs of New Zealanders,' said Leanne Lazarus, Heartland Bank CEO. Alistair and Rebecca will join Heartland Bank on 8 September and 15 September 2025, respectively. Their appointments are subject to Reserve Bank of New Zealand non-objection. About Heartland Bank Heartland Bank Limited (Heartland Bank) is a 100% New Zealand operated and managed bank with a long history stretching back to Ashburton in 1875. It provides customers with specialist banking products, including Reverse Mortgages, Livestock Finance, Motor Finance, Asset Finance and Savings and Deposit products. Heartland Bank has been awarded Canstar's Bank of the Year Savings for eight consecutive years (2018-2025) and is New Zealand's leading provider of reverse mortgages. Its Reverse Mortgages have received Consumer Trusted accreditation from Consumer NZ for eight years in a row from 2017 – 2024. Heartland Bank's point of differentiation is its 'best or only' strategy – where it focuses on providing banking products which are the best or only of their kind through scalable digital platforms. Heartland Bank's parent company, Heartland Group Holdings Limited (Heartland Group), is a financial services group with operations in Australia and New Zealand. Heartland is listed on the New Zealand and Australian stock exchanges (NZX/ASX: HGH).
NZ Herald
42 minutes ago
- NZ Herald
Grocery Action Group hits out at supermarkets as Kiwis keep paying high prices for groceries
The commission's report found New Zealanders paid 3% more for their groceries in 2023 than the OECD average. 'That puts us in the top five most expensive in the OECD,' Chetwin said. But the report said 2023 prices were closer to the OECD average than previous years. Kiwi shoppers were paying 9% above the OECD average for groceries in 2022, and 14% more in 2021. However, prices for goods in the 'milk, cheese, eggs' and 'fruits, vegetables, potatoes' categories were significantly higher in New Zealand than the OECD average. The report said it was a concern 'that many of the goods in these two categories are produced and sold domestically'. New Zealanders spent more than $27 billion at supermarkets and grocery stores in the year to June 30, 2024, up 5.3% compared with the previous 12 months. Grocery Commissioner Pierre van Heerden said change in an industry this large and entrenched will take time and a deliberate, co-ordinated effort. 'In 2024, retail grocery prices appeared to have stabilised after years of significant growth, which was reflected in a slowing of the major supermarkets' gross margin growth, however, grocery prices remain higher than the OECD average,' van Heerden said. 'Recent data shows retail prices increasing again in 2025 ... there is more work to be done to improve competition.' The report also found barriers to entry for new competitors remain, while the major supermarket chains (run by Foodstuffs and Woolworths) continue to wield their power over smaller suppliers. In addition, the report highlighted geographical inequities in the two major supermarket chains' dominance. In Auckland, the major supermarkets hold 71% of the market compared to 88% in the rest of New Zealand, the report said. 'Consumers in Auckland and other main cities have a range of options, but consumers in smaller towns and rural areas typically have minimal to no choice within their locality, with some stores in small towns functioning as a localised monopoly,' van Heerden said. Supermarkets respond Foodstuffs North Island CEO Chris Quin said the co-op was making solid progress across key areas of regulatory reform. 'We back the intent of the still relatively new regulatory framework to drive competition, efficiency and better outcomes for New Zealand consumers,' Quin said. 'We've taken that responsibility seriously from day one and have put in place a broad programme of work to meet our obligations and make the system work well for customers, suppliers and retailers alike. 'Much of this work has been under way for some time and it's being delivered alongside our day-to-day focus on serving millions of customers a week, investing in new stores and technology and keeping our supply chain efficient and resilient.' Quin welcomed the commission's findings that competition in the grocery sector is more developed in areas with higher population density. 'We're pleased the commission has recognised that competition is strongest where demand and population support it, and that concerns about land holdings are not borne out by the evidence,' he said. 'We're focused on opening new stores and providing new jobs in small, remote and growing communities where the need is clear.' Foodstuffs South Island chief executive Mary Devine said the co-op's focus remained delivering for customers in all corners of the South Island and building enduring and trusted supplier relationships. 'The South Island presents unique logistical challenges due to its low population density – approximately eight people per square kilometre. 'Yes, we have supermarkets in cities and major towns, but we also have 37 stores that serve communities of less than 5000 people [and] 56 that serve communities of under 10,000 people and that's a responsibility we take seriously.' The Annual Grocery Report said 90% of Kiwis are within a 10-minute drive from a major supermarkets. Woolworths has been approached for comment.
Scoop
an hour ago
- Scoop
Heartland Bank Announces Two Senior Leadership Appointments
Heartland Bank Limited is pleased to announce two strategic appointments to its senior leadership team, reflecting the company's commitment to sustainable growth and digital transformation. Alistair Scott joins Heartland Bank in the role of Chief Auto & Asset Finance Officer. With over 30 years' experience in the automotive industry, Alistair most recently served as Managing Director for Jaguar Land Rover's Asia Pacific region, overseeing operations across 16 markets. His extensive expertise spans senior roles in sales, franchise management and business development across diverse markets including Asia, Latin America, Australia, and the UK. Rebecca Thomas will be taking on the role of Chief Digital Transformation Officer. Bringing more than 25 years of experience in technology, data and enterprise transformation, Rebecca's career spans multiple industries including insurance, engineering, government and professional services. Recognised as one of the country's top Chief Information Officers from her time at PwC New Zealand, she brings deep expertise in technology operations alongside a strong focus on AI and data-driven initiatives. 'I'm delighted to welcome Alistair and Rebecca, who will be instrumental in driving our vision to innovate, grow and continue meeting the specialist banking needs of New Zealanders,' said Leanne Lazarus, Heartland Bank CEO. Alistair and Rebecca will join Heartland Bank on 8 September and 15 September 2025, respectively. Their appointments are subject to Reserve Bank of New Zealand non-objection. About Heartland Bank Heartland Bank Limited (Heartland Bank) is a 100% New Zealand operated and managed bank with a long history stretching back to Ashburton in 1875. It provides customers with specialist banking products, including Reverse Mortgages, Livestock Finance, Motor Finance, Asset Finance and Savings and Deposit products. Heartland Bank has been awarded Canstar's Bank of the Year Savings for eight consecutive years (2018-2025) and is New Zealand's leading provider of reverse mortgages. Its Reverse Mortgages have received Consumer Trusted accreditation from Consumer NZ for eight years in a row from 2017 – 2024. Heartland Bank's point of differentiation is its 'best or only' strategy – where it focuses on providing banking products which are the best or only of their kind through scalable digital platforms. Heartland Bank's parent company, Heartland Group Holdings Limited (Heartland Group), is a financial services group with operations in Australia and New Zealand. Heartland is listed on the New Zealand and Australian stock exchanges (NZX/ASX: HGH).
