Since 2017 Inland Revenue (IR also known as IRD) has been reporting tax defaults to Centrix, the only approved credit bureau, and more recently they have made some changes to improve transparency. IR have introduced a more robust approach to managing significant company tax arrears, a shift that will change how financial risk is assessed, helping bring clearer visibility of serious tax debt and supporting more informed credit decisions throughout the economy.

These refinements do not change the underlying law. Instead, they adjust how IR notifies businesses when their tax arrears meet the long-standing criteria for potential disclosure. As this pilot rolls out, lenders, suppliers, and Kiwi businesses can expect more timely and consistent visibility of serious financial stress.

Why IR has tightened its approach

IR’s update focuses on strengthening its notification process for companies whose overdue tax meets the thresholds for credit reporting. The aim is to make the process clearer, more consistent, and easier for businesses to understand what action is required.

From 13 October 2025, IR began a pilot where selected companies are now receiving a Notice of Intent through myIR and at their registered office. Businesses then have 30 days to take action, typically by engaging with IR to make payment or setting up an instalment arrangement.

When tax debt can be reported to Centrix

If no action is taken within the notice period, IR may report the arrears to Centrix, under long-standing regulations. Disclosure is permitted when:

• tax debt exceeds $150,000, or
• the debt has remained unpaid for 12 months, and equals 30% or more of the company’s assessable income.

IR has also clarified that “reasonable efforts” to recover the debt include the standard reminders and repayment options it already provides. This means IR does not need to contact every individual director, i.e. formal notification to the company is sufficient.

What this means for Kiwi businesses

This more structured approach to IR tax-debt reporting is good news for New Zealand businesses. Earlier visibility of serious arrears allows credit providers to assess risk with greater accuracy, supporting stronger cashflow management and reducing exposure to sudden insolvency events. It also provides more certainty when extending credit terms or supplying goods and services ahead of payment.

For businesses, the changes underline the importance of engaging with IR early. Ignoring mounting tax debt now comes with a higher likelihood of credit reporting if there is no response within the 30 day window. This can affect your business credit profile, access to finance, and trading relationships.

Improving transparency reduces risk

Centrix is working closely with IR on this pilot to improve transparency of significant tax arrears and provide the market with more reliable indicators of financial stress.

As the only credit bureau authorised to receive this data, we remain committed to supporting better-informed credit decisions across all sectors – reducing overall risk not only for our customers but for the wider New Zealand business community.

Watch this space – we will continue to share updates as the IR pilot progresses.