Commissioner Acting Legally

  • David Carter
Associate Minister of Revenue

Crown Law Office advice to IRD last Friday confirmed that the Commissioner of Inland Revenue has the power to negotiate instalment arrangements for outstanding GST and PAYE taxpayer debt, says Hon David Carter.

"Any suggestion that the Commissioner does not have the authority to enter into instalment arrangements for GST and PAYE debt is incorrect," says the Associate Revenue Minister.

"Currently the Commissioner of Inland Revenue is actively managing instalment arrangements of $230 million."

"Inland Revenue has a duty to actively manage debt. More than 100,000 instalment arrangements currently in use assist taxpayers to repay their debt and certainly appear to be working if reducing total debt is any evidence."

"While at times it is a difficult line for the Commissioner of Inland Revenue to tread, being fair to the errant taxpayer, while also recognising that the vast majority of taxpayers pay their tax on time, external legal advice received on Friday confirms that the Commissioner's actions in entering into these arrangements are appropriate."

"Any person objecting to instalment arrangements entered into by Inland Revenue has to acknowledge that the alternatives, bankruptcy or liquidation, are far less palatable and productive to most taxpayers."