As part of the transformations relating to increased transparency and information sharing from Government departments legislation was enacted to enable the IRD to share information about certain IRD debt with approved credit reporting agencies.
One of the conditions which must be met before the IRD can release this information is that the tax debt, including interest and penalties, must exceed 30% of the taxpayer’s assessable income where the debt is more than a year old or, a prescribed amount. Regulations which come into force next Thursday, 29 June have now set this prescribed amount at $150,000.
Before the Commissioner can provide information to approved credit agencies the taxpayer must have been notified that they have a reportable debt and the rules will not apply where an arrangement exists or the debt is under dispute.
Currently this threshold will only affect the larger side of tax debt however, as the rules are set by regulation these thresholds will be easier for the Government to change in the future if the initial response to the regime is positive.