Creditors get more protection from indebted businesses
A threshold for reportable tax debt is now in effect, giving creditors greater protection from businesses owing debts of more than $150,000.
The IRD is now allowed to disclose to certain credit reporting agencies, information about companies with significant tax debt. An Order in Council set a threshold of $150,000, so a company’s tax debt over that amount may be disclosed. This took effect on 29 June.
Disclosure may inform smaller creditors who would otherwise not know they were dealing with a business with a significant tax debt.