Tax agents report problems talking to Inland Revenue

Tuesday 7th December 2010

Tax agents say Inland Revenue is refusing to speak to them in some cases when they are trying to resolve client tax debt.

New Zealand Institute of Chartered Accountants (NZICA) tax director Craig Macalister said there was generally a good relationship between tax agents and Inland Revenue.

But NZICA was receiving complaints from tax agents, mainly from the Wellington area, that Inland Revenue was refusing to engage with them over client tax debt matters.

In some cases Inland Revenue had not responded at all, and in others it had told the tax agent it would only meet if payment was received in full, and liquidation action would continue unless payment in full could be made, Mr Macalister said.

Tax agents played a large role in the overall operation of the tax system, from giving clients guidance on their tax positions, to ensuring clients filed and paid on time. To a large extent Inland Revenue and the tax system relied on the work of tax agents.

When the financial crisis hit, Inland Revenue advised NZICA it would take an understanding approach when taxpayers were facing debt issues as a consequence of the economic downturn.

That was happening for a while, but seemed not to be the case any longer, particularly for those based in Wellington, Mr Macalister said.

NZICA could understand Inland Revenue's frustration when taxpayers continually failed to meet obligations.

"However, many of these taxpayers are facing very tough times and that is the reality of the situation. It also does not help when Inland Revenue do not respond or just refuse to meet with the tax agent."

NZPA

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