Read this first
Before you call anyone about tax debt
Who you call first can decide whether your business keeps trading. Here's a calm, factual guide to the order, the warning signs and the questions to ask, from a lender with nothing to gain from any appointment.
Search for "IRD debt help" or "tax debt help" and many of the businesses you'll find are insolvency or restructuring firms. Some are excellent. But their work centres on formal processes, and once a liquidator is appointed, their duties run to your creditors, not to you.
Licensed insolvency practitioners do essential work. When a business can't continue, a good one protects creditors and helps directors do the right thing. The warning here is narrower and practical: don't be steered into a formal process before you've checked whether IRD can simply be paid or arranged, and always check who you're dealing with.
IRD is now behind most liquidation applications in New Zealand: 69% in January 2026, up from 32% in 2021, according to Centrix data reported by interest.co.nz. Many of those companies had options earlier in the process.
Who's writing this. We're a business lender. We're not an insolvency firm, liquidator, pre-insolvency adviser or tax agent. We don't take appointments, and if funding isn't right for you, we'll tell you.
The order that protects you
Who to call, and in what order
This order usually takes two or three working days, even with a deadline running, and it means any decision is made with every option on the table.
- 1
Your accountant
Is the business viable once the old debt is set aside? What's the real balance? Are returns up to date?
- 2
A lawyer, if there's a legal deadline
Statutory demands and liquidation applications have strict timeframes. Confirm the dates and your personal position.
- 3
IRD itself
An instalment arrangement costs nothing to apply for in myIR. IRD would rather you engaged than went quiet.
- 4
A funder
Can the debt be paid in full, and what would it cost in total dollars? This answer shapes every other choice.
- 5
A licensed insolvency practitioner, if the business can't continue
When the business genuinely can't recover, a good licensed practitioner is the right person. Check the licence and get fees in writing.
Warning signs to watch for
These are factual signals to slow down and get a second opinion. They aren't accusations against any profession.
- Pressure to decide or sign the same day, before you've seen your myIR balance or spoken to your accountant.
- "Liquidation makes the IRD debt disappear" with nothing about personal guarantees, overdrawn current accounts or PAYE exposure.
- Suggestions to move assets, customers or contracts into a new company first, or to restart under a similar name. See the phoenix rules.
- An offer to act as liquidator from someone not on the licensed register.
- No written fee estimate, or vague answers about who pays.
- Advice to stop talking to IRD or to ignore letters.
- "Guaranteed" write-offs. Companies can't use serious hardship relief, and IRD decides write-offs.
The full list is in our warning signs checklist.
Questions to ask any adviser
- Are you a licensed insolvency practitioner? What's your name on the Companies Office register?
- Will you or your firm take the appointment? Who will you work for once appointed?
- How will your fees be worked out, who pays them, and can I have a written estimate?
- Have you looked at whether the business could pay or refinance IRD, or set up an instalment arrangement first?
- What happens to my personal guarantees and my shareholder current account?
- Will my conduct as a director be investigated, and what records will you need?
- Could any part of your plan breach the phoenix rules or count as moving assets away from creditors?
- If I'm unhappy with your service or fees, where can I complain? (NZICA.)
What protections exist in New Zealand?
Licensing. Since 1 September 2021, insolvent liquidations, voluntary administrations and receiverships must be handled by a licensed insolvency practitioner (RITANZ). Check the Companies Office register.
Complaints. NZICA, the accredited body, licenses practitioners and handles complaints about breaches of professional standards, lack of competence or overcharging (Companies Office).
Professional standards. The NZ Insolvency Services Standard bans commissions and referral fees, strengthens fee transparency, and requires members to decline to advise an insolvent entity on how to put assets beyond creditors (CA ANZ).
What doesn't exist. We found no official New Zealand warning about unlicensed "pre-insolvency" or "debt" advisers, and no specific licensing regime for tax debt negotiators. So ask every adviser about qualifications, fees in writing and what happens if their approach fails.
What liquidation does and doesn't clear
The company's tax debt generally goes with the company. But personal guarantees survive, liquidators can pursue overdrawn current accounts, directors' conduct is investigated, and PAYE decisions can bring personal exposure. The liquidator's fees and expenses are paid first from company assets (insolvency.govt.nz). Read what liquidation means and our before you liquidate checklist.
Where we fit
We're step four on the list: the funder. We'll tell you quickly whether a loan could pay IRD in full, what it would cost in total dollars, and whether an IRD arrangement would serve you better. Property-secured loans run from $20,000 to $5,000,000; cash-flow options for trading businesses are typically $5,000 to $500,000. Bad credit and existing IRD debt are considered case by case. If the business can't continue, we'll say so and suggest you speak to your accountant or a licensed insolvency practitioner.
Talk to us before you sign anything. There's no credit check when you first enquire, your details aren't passed to other lenders or advisers, and a real person calls you back.
Frequently asked questions
Who should I call first about IRD debt?
Usually your accountant, to check the balance and whether the business is viable. If there's a statutory demand or liquidation application, call a lawyer the same day. Then IRD and a funder. A licensed insolvency practitioner is the right call if the business can't continue.
Why not call an insolvency firm first?
Many firms that rank for tax debt help are insolvency businesses, and their work centres on formal appointments. That's appropriate when a business can't continue, but if it can, you'll want to have checked funding and arrangements first.
Is there an official warning about pre-insolvency advisers in New Zealand?
We didn't find one. Unlike Australia, New Zealand regulators haven't published a specific warning about unregulated pre-insolvency advisers. The protections that do exist are licensing for formal insolvency work, professional standards, director duties and the phoenix rules.
How do I check an insolvency practitioner?
Search the insolvency practitioners register on the Companies Office website. Complaints, including about overcharging, go to NZICA, the accredited body.
What if someone calls me offering help after IRD files against my company?
Treat it like any other advice: check who they are, how they're paid and whether they're licensed for what they're offering. Don't sign at the first conversation.
Talk to a funder before you sign anything
One short enquiry. No credit check when you first enquire, your details stay with us, and a real person who understands IRD's process calls you back with an honest answer.
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