Liquidations of New Zealand companies have increased significantly, despite positive lending trends and eased interest rates.
The latest Centrix Credit Indicator shows a year-on-year rise of 26 percent, driven by increased enforcement activity by the Inland Revenue Department (IRD).
This year’s budget included an increase of around $64 million (US$37.7 million) in funding for IRD’s enforcement activities, intended to boost collection efforts and encourage tax compliance.
The government has said it expects the department to eventually generate $8 for every dollar it spends on the investigation and collection process.
The construction industry was the worst affected, with a total of 765 companies liquidated in the last year, an increase of 46 percent compared to the previous year. However, the rate of growth now appears to be stabilising….
New Zealand Tax Office Puts Record Number of Companies Into Liquidation
