Tax Debt Crisis Threatens NZ Businesses | Auckland News

New Zealand’s business liquidation crisis is hitting record levels, with over 2,800 companies closing last year — a 15-year high — especially in Gisborne, where firms are reportedly drowning in tax debt. CAANZ blames systemic flaws in current tax laws, pointing to the $9.4 billion national tax debt, much of it from small and medium businesses struggling with cash flow. The solution? Redirect Pay As You Earn taxes directly to Inland Revenue, stopping businesses from using employee deductions as emergency cash — a move that could prevent spiraling debt. Many owners lack financial know-how, leading them to tap tax funds when strapped, only to face mounting penalties. The IRD has started proactive outreach for smaller debts, while CAANZ suggests subsidizing payroll help. Experts stress early action, consistent filing, and repayment plans as the key to survival — before liquidation becomes inevitable. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/374bc22b43e3c297