In today’s economic climate, it’s not uncommon for businesses to fall behind on their tax obligations. But when it comes to GST and PAYE, the stakes are especially high—not just for the company, but for its directors.
At Fixity, we work with business owners and directors across New Zealand who are navigating the stress of IRD debt. Here’s what you need to know if your company is behind on GST or PAYE.
Directors Can Be Personally Liable
Under New Zealand law, directors may be held personally responsible for unpaid GST and PAYE—particularly if the company continues trading while insolvent or if the non-payment is deemed reckless.
If IRD believes there’s been intentional avoidance or gross negligence, they can pursue directors directly. This is especially true for PAYE, which is money withheld from employees and must be passed on to IRD.
Criminal Charges Are a Real Risk
In serious cases, directors may face criminal prosecution. Using PAYE funds for other purposes or failing to file and pay GST returns can trigger legal action. IRD has stepped up enforcement in 2025, and directors are under more scrutiny than ever.
IRD Can Force Liquidation
If your company ignores a statutory demand from IRD, it may be deemed insolvent. IRD can then apply to the High Court to appoint a liquidator—often one of their choosing. This means you lose control over the process, and your company’s assets may be sold quickly and below value.
Reputational Damage & Loss of Control
Being pursued by IRD or facing liquidation can damage your reputation, especially if you’re involved in other ventures or directorships. Once liquidation begins, directors lose control over the company’s operations, finances, and future.
How Fixity Has Made a Difference
At Fixity, we’ve helped numerous New Zealand businesses overcome GST and PAYE arrears by working closely with directors to develop sustainable solutions. Our approach is grounded in practical outcomes and long-term success.
We’ve successfully negotiated substantial payment plans with IRD by implementing robust reporting and forecasting models that demonstrate a business’s ability to meet its obligations.
We work with business owners to identify surplus assets—both company and personal—that can be used to accelerate debt repayment.
Our focus is always on preserving business continuity, protecting jobs, and ensuring IRD receives repayment within a reasonable timeframe.
Every strategy we put in place is designed to set the business up for future success, not just short-term relief.
If your business is facing tax arrears, know that there are options—and Fixity has a proven track record of helping directors navigate them with clarity and confidence.
