Latest news with #JaneElley
1News
14-05-2025
- 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."
NZ Herald
13-05-2025
- 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
RNZ News
13-05-2025
- Business
- RNZ News
Inland Revenue taking tougher line on student loan debtors
One person was arrested at the border last month and they have since paid off their debt. File photo. Photo: 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." Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
13-05-2025
- Business
- Scoop
Overseas-Based Student Loan Borrowers' Repayment Increases
Press Release – Inland Revenue At the end of April this year there were 113,733 people with student loans who Inland Revenue believes were based overseas. For around 24,000 OBB the debt is more than 15 years old. Inland Revenue has 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. Much of this success can be attributed to an increase in Student Loan Compliance funding in last year's budget. As a result of the work we've been doing we're also starting to see a more positive attitude by new borrowers, most who are meeting their payment obligations. The statistics At the end of April this year there were 113,733 people with student loans who Inland Revenue believes were based overseas. Of this group of overseas-based borrowers (OBB), 71% are in default owing $2.3b (just over $1b is penalties and interest). For around 24,000 OBB the debt is more than 15 years old. They aren't registered for myIR and have no repayment plan in place. The outstanding repayments total $1.3b with penalties of $696m. Progress Inland Revenue's Jane Elley says there's been a focus on OBB who own property in New Zealand, borrowers who return to New Zealand regularly and those who have defaulted on an instalment arrangement. 'We've contacted more than 12,000 borrowers. 1,320 have entered repayment plans, and 960 people have fully repaid their overdue amounts. They have collectively repaid $9 million', Jane Elley says. '304 OBB own property here and 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 OBB 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.' Arrests at the border Arrests at the border for unpaid student loan debt is a measure of last resort, but we do use it. Jane Elley says Inland Revenue can apply to the New Zealand courts for a warrant to arrest persistent overseas-based borrowers who knowingly default on their repayment obligations. 'New Zealand Customs informs us of any border crossings into New Zealand by OBB and airlines provide the travel information to us. We apply to the District Court and the police make the actual arrest. '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, 2024, we have told 89 defaulters they could be arrested at the border. As a result, 11 have taken action to avoid arrest 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.
Scoop
13-05-2025
- Business
- Scoop
Overseas-Based Student Loan Borrowers' Repayment Increases
Inland Revenue has 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. Much of this success can be attributed to an increase in Student Loan Compliance funding in last year's budget. As a result of the work we've been doing we're also starting to see a more positive attitude by new borrowers, most who are meeting their payment obligations. The statistics At the end of April this year there were 113,733 people with student loans who Inland Revenue believes were based overseas. Of this group of overseas-based borrowers (OBB), 71% are in default owing $2.3b (just over $1b is penalties and interest). For around 24,000 OBB the debt is more than 15 years old. They aren't registered for myIR and have no repayment plan in place. The outstanding repayments total $1.3b with penalties of $696m. Progress Inland Revenue's Jane Elley says there's been a focus on OBB who own property in New Zealand, borrowers who return to New Zealand regularly and those who have defaulted on an instalment arrangement. 'We've contacted more than 12,000 borrowers. 1,320 have entered repayment plans, and 960 people have fully repaid their overdue amounts. They have collectively repaid $9 million', Jane Elley says. '304 OBB own property here and 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 OBB 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.' Arrests at the border Arrests at the border for unpaid student loan debt is a measure of last resort, but we do use it. Jane Elley says Inland Revenue can apply to the New Zealand courts for a warrant to arrest persistent overseas-based borrowers who knowingly default on their repayment obligations. 'New Zealand Customs informs us of any border crossings into New Zealand by OBB and airlines provide the travel information to us. We apply to the District Court and the police make the actual arrest. '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, 2024, we have told 89 defaulters they could be arrested at the border. As a result, 11 have taken action to avoid arrest 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.
