No doubt as a sign of the times economically, Inland Revenue has issued a draft standard practice statement on options for relief of tax debt. It discusses IRD discretion to grant financial relief and the options available for taxpayers unable to pay their tax in full on time. It sets out IRD practice when considering options for relief from the requirement to pay tax, interest and penalties.
Relevant points are that IRD will only write off tax debt if the taxpayer is placed ‘in serious hardship’ but may enter an instalment arrangement to collect the debt over time. The taxpayer can apply for relief, but it is not available as of right. IRD may decide that the more appropriate action is to seek bankruptcy or liquidation.
IRD have also issued a Revenue Alert that an employer that deducts PAYE and related amounts and knowingly applies the deductions for purposes other than payment to IRD commits a criminal offence.
IRD is also increasing it’s focus on cryptocurrency trading, and regards any profits generated from such trading as taxable income. Finally, please remember that two-step verification is compulsory for all users to access their tax information.
If you have any queries over tax or accounting issues, please get in touch with our office for further explanations.
