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Arrest at airport as IR takes tougher stance on student loan debts
Arrest at airport as IR takes tougher stance on student loan debts

1News

time14-05-2025

  • Business
  • 1News

Arrest at airport as IR takes tougher stance on student loan debts

The arrest of a person arriving at the border last month over unpaid student loan debt is an example of Inland Revenue "making up for lost time," one tax expert says. Inland Revenue said at the end of April there were 113,733 people with student loans believed to be based overseas. More than 70% were in default on their loans, owing $2.3 billion, of which more than $1b is penalties and interest. For about 24,000 of these overseas-based borrowers, the debt is more than 15 years old. IR has been taking a tougher line, including arrests at the border as a "measure of last resort". "New Zealand Customs informs us of any border crossings into New Zealand by overseas-based borrowers and airlines provide the travel information to us. We apply to the district court and the police make the actual arrest," IR spokesperson Jane Elley said. "Once arrested and taken before the courts, a judge can order the defaulter to make reasonable efforts to arrange repayment to Inland Revenue." Since July 1 last year, 89 people had been told they could be arrested at the border. Eleven had taken action by either making acceptable payments, entering repayment plans or applying for hardship provisions. "One person was arrested at the border last month and they have since paid off their debt. "There are just over 150 overseas-based borrowers, with a combined default of $15m, who we actively look out for in case they return to New Zealand." Elley said Inland Revenue had collected more than $207 million in repayments since July last year from student loan borrowers living overseas — a 43% increase on the same period the previous year Inland Revenue had an increase in student loan compliance funding in last year's budget. "We've contacted more than 12,000 borrowers, 1320 have entered repayment plans, and 960 people have fully repaid their overdue amounts. They have collectively repaid $9 million," Elley said. She said the department was also looking at borrowers who owned property in New Zealand. There were just over 300, she said. "During the first six months of our increased compliance work they paid up $1.7 million. For defaulters within this group who have refused to engage and resolve their default, further legal enforcement action will be taken which may include NZ-based bankruptcy or charging orders over their properties. "There were also 151 [borrowers] with NZ-based investments, and between July and December last year we received payments totalling $84,000 from some of them. Again, there could be legal action ahead including taking deductions from their investments or bank accounts receiving interest income." Robyn Walker, a tax partner at Deloitte, said it was another example of where IR had been dormant for a while and was now making up for lost time. "In the past there has seemingly been very little effort applied to contacting overseas-based student loan defaulters, and for many of them, they probably were blissfully unaware of mounting repayment liabilities, penalties and interest if Inland Revenue had difficulty contacting them. "We've periodically heard the stories of borrowers being arrested at the border, and its actions like that which can really spur people on to get on top of their obligations. "No one wants to not be able to come back to New Zealand for a special event or family emergency because they're concerned that their student loan will catch-up with them."

Airport arrest show tougher stance on student debt
Airport arrest show tougher stance on student debt

Otago Daily Times

time13-05-2025

  • Business
  • Otago Daily Times

Airport arrest show tougher stance on student debt

By Susan Edmunds of RNZ The arrest of a person arriving at the border last month over unpaid student loan debt is an example of Inland Revenue "making up for lost time", one tax expert says. Inland Revenue said at the end of April there were 113,733 people with student loans believed to be based overseas. More than 70 percent were in default on their loans, owing $2.3 billion, of which more than $1b is penalties and interest. For about 24,000 of these overseas-based borrowers, the debt is more than 15 years old. IR has been taking a tougher line, including arrests at the border as a "measure of last resort". "New Zealand Customs informs us of any border crossings into New Zealand by overseas-based borrowers and airlines provide the travel information to us. We apply to the district court and the police make the actual arrest," IR spokesperson Jane Elley said. "Once arrested and taken before the courts, a judge can order the defaulter to make reasonable efforts to arrange repayment to Inland Revenue." Since 1 July last year, 89 people had been told they could be arrested at the border. Eleven had taken action by either making acceptable payments, entering repayment plans or applying for hardship provisions. "One person was arrested at the border last month and they have since paid off their debt. "There are just over 150 overseas-based borrowers, with a combined default of $15m, who we actively look out for in case they return to New Zealand." Elley said Inland Revenue had collected more than $207 million in repayments since July last year from student loan borrowers living overseas - a 43 percent increase on the same period the previous year Inland Revenue had an increase in student loan compliance funding in last year's budget. "We've contacted more than 12,000 borrowers, 1320 have entered repayment plans, and 960 people have fully repaid their overdue amounts. They have collectively repaid $9 million," Elley said. She said the department was also looking at borrowers who owned property in New Zealand. There were just over 300, she said. "During the first six months of our increased compliance work they paid up $1.7 million. For defaulters within this group who have refused to engage and resolve their default, further legal enforcement action will be taken which may include NZ-based bankruptcy or charging orders over their properties. "There were also 151 [borrowers] with NZ-based investments, and between July and December last year we received payments totalling $84,000 from some of them. Again, there could be legal action ahead including taking deductions from their investments or bank accounts receiving interest income." Robyn Walker, a tax partner at Deloitte, said it was another example of where IR had been dormant for a while and was now making up for lost time. "In the past there has seemingly been very little effort applied to contacting overseas-based student loan defaulters, and for many of them, they probably were blissfully unaware of mounting repayment liabilities, penalties and interest if Inland Revenue had difficulty contacting them. "We've periodically heard the stories of borrowers being arrested at the border, and its actions like that which can really spur people on to get on top of their obligations. "No one wants to not be able to come back to New Zealand for a special event or family emergency because they're concerned that their student loan will catchup with them."

Inland Revenue taking tougher line on student loan debtors
Inland Revenue taking tougher line on student loan debtors

NZ Herald

time13-05-2025

  • Business
  • NZ Herald

Inland Revenue taking tougher line on student loan debtors

IR has been taking a tougher line, including arrests at the border as a 'measure of last resort'. ' New Zealand Customs informs us of any border crossings into New Zealand by overseas-based borrowers and airlines provide the travel information to us. We apply to the district court and the police make the actual arrest,' IR spokeswoman Jane Elley said. 'Once arrested and taken before the courts, a judge can order the defaulter to make reasonable efforts to arrange repayment to Inland Revenue.' Since July 1 last year, 89 people had been told they could be arrested at the border. Eleven had taken action by either making acceptable payments, entering repayment plans or applying for hardship provisions. 'One person was arrested at the border last month and they have since paid off their debt. 'There are just over 150 overseas-based borrowers, with a combined default of $15m, who we actively look out for in case they return to New Zealand.' Elley said IR had collected more than $207m in repayments since July last year from student loan borrowers living overseas – a 43% increase on the same period the previous year. IR had an increase in student loan compliance funding in last year's Budget. 'We've contacted more than 12,000 borrowers, 1320 have entered repayment plans, and 960 people have fully repaid their overdue amounts. They have collectively repaid $9m,' Elley said. She said the department was also looking at borrowers who owned property in New Zealand. There were just over 300, she said. 'During the first six months of our increased compliance work they paid up $1.7m. For defaulters within this group who have refused to engage and resolve their default, further legal enforcement action will be taken, which may include NZ-based bankruptcy or charging orders over their properties. 'There were also 151 [borrowers] with NZ-based investments, and between July and December last year we received payments totalling $84,000 from some of them. Again, there could be legal action ahead, including taking deductions from their investments or bank accounts receiving interest income.' Robyn Walker, a tax partner at Deloitte, said it was another example of where IR had been dormant for a while and was now making up for lost time. 'In the past there has seemingly been very little effort applied to contacting overseas-based student loan defaulters, and for many of them, they probably were blissfully unaware of mounting repayment liabilities, penalties and interest if Inland Revenue had difficulty contacting them. 'We've periodically heard the stories of borrowers being arrested at the border, and it's actions like that which can really spur people on to get on top of their obligations. 'No one wants to not be able to come back to New Zealand for a special event or family emergency because they're concerned that their student loan will catch up with them.' – RNZ

Chipman double-homicide case delayed again as defence waits for disclosure of evidence
Chipman double-homicide case delayed again as defence waits for disclosure of evidence

CBC

time17-03-2025

  • CBC

Chipman double-homicide case delayed again as defence waits for disclosure of evidence

A case against a Chipman man charged with two counts of first-degree murder has been delayed for a third time because of a substantial amount of evidence that has yet to be shared with the defence. Dates for a preliminary hearing were scheduled to be set on Monday, but defence lawyer Carley Parish said by telephone that she still hadn't received disclosure of evidence from the Crown. Mark Elley was arrested in January and charged in the deaths of Robert Waugh, 47, and Victoria King, 23, both of the Fredericton area, whose bodies were discovered in a burnt-out SUV in Chipman in November. Chipman RCMP responded Nov. 25 at around 8 a.m. to a report of two people inside a burning vehicle off Midland Road, about 60 kilometres northeast of Fredericton. When officers arrived, they located the bodies of a man and woman inside a white Chevrolet Equinox "that had been consumed by fire." After Elley's arrest in January, Cpl. Hans Ouellette, spokesperson for the New Brunswick RCMP, wouldn't say whether the accused and victims were known to each other, or whether the accused is known to police, citing the court case and continuing investigation. He also didn't say at the time whether the victims were killed by the fire. On Monday, Crown prosecutor Jennifer Cooper said there is "substantial disclosure" in the case, which takes a lot of time and effort to review. She said there are 300 documents alone, "not pages but documents." Cooper said the disclosure of evidence is "a very serious matter" and it's important that the vetting be done properly. She said in response to questions by Judge Lyne Raymond that it's unrealistic that the disclosure would be ready by the end of the week. Raymond set the matter over until March 24, at which time the Crown is expected to give an indication of when that disclosure will be ready. The setting of preliminary hearing dates were also delayed on Feb. 10 and Feb. 24, again because the defence didn't have the disclosure of evidence. Parish also raised the issue that her client was arrested in January and still hasn't had a bail hearing. Elley appeared in court on Monday by telephone and remains in custody.

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