Contact Inland Revenue early
If a business cannot pay tax in full, the first step is to understand the official Inland Revenue options. Ignoring returns, notices or missed payments can reduce the time available to resolve the problem.
Inland Revenue says businesses and other eligible taxpayers may be able to apply for an instalment arrangement or financial relief. The right pathway depends on the circumstances, and Inland Revenue may request financial information.
Instalment arrangements
An instalment arrangement allows agreed payments to be made over time. It can cover tax already owing or tax that will become due. Applying through myIR does not guarantee that the proposed arrangement will be accepted; Inland Revenue may approve it or ask for more information.
Making voluntary payments without an agreed arrangement is not necessarily the same thing. Read the current IRD instalment-arrangement guidance and confirm the status of any proposal directly with Inland Revenue.
Financial relief
Companies, partnerships and trusts can apply for financial relief or support a proposal to pay by instalments. Inland Revenue may ask about assets, liabilities, the reason for the debt and whether the business has tried to obtain a loan.
The official process is explained on the IRD debt and insolvency pages and the page for companies, partnerships and trusts.
Information to assemble
- The tax types and periods involved.
- Total amount owing and the immediate deadline.
- Whether all returns are filed.
- Existing arrangements, notices or legal steps.
- Current business cash position and ongoing obligations.
- Assets, liabilities and available security.
- A realistic plan for future tax and ordinary operating costs.
An accountant, tax adviser or restructuring professional can help the business assess the wider position. A new loan should address the problem as part of a viable plan, not simply postpone it.
Where property-secured finance may be compared
Property-secured business finance may be considered where suitable New Zealand real estate is available and the borrowing has a genuine business purpose. It may allow an obligation to be resolved quickly while giving the business an approved repayment structure.
Before proceeding, compare the loan’s total cost and property risk with an IRD arrangement, asset sale, shareholder contribution, refinance and other realistic options.
HomeSec’s lending range is $20,000–$1,000,000. Credit issues, arrears or tax debt do not automatically guarantee either approval or decline; the complete scenario must be assessed.
If timing is urgent
Provide the amount, deadline, relevant correspondence, property details, current mortgage balances and the proposed repayment path as early as possible. Funding in as little as 24 hours may be possible only when approval, documents, security, legal work and settlement requirements align.