Quick answer
Be cautious if anyone advising you about IRD debt pressures you to sign the same day, says liquidation makes the debt disappear without mentioning guarantees, current accounts or PAYE, suggests moving assets or customers into a new company, won't give a written fee estimate, isn't on the licensed register but offers to act as liquidator, tells you to stop talking to IRD, or guarantees a write-off. These are signs to pause, check and get a second opinion.
A note on who's writing this. We're a business lender, not an insolvency firm or liquidator, and we earn nothing from any appointment. Before you sign anything, read who to call first and check any practitioner on the Companies Office register.
Key points
- Same-day pressure to sign is the most common warning sign.
- Any plan to move assets, customers or contracts into a new company needs independent legal advice first.
- Only a licensed insolvency practitioner can act in an insolvent liquidation.
- Companies can't use serious hardship relief, so guaranteed write-offs deserve hard questions.
- Check licences
- Companies Office register
- Complaints
- NZICA
- Always ask for
- Written fee estimate
- Never
- Stop engaging with IRD
When IRD debt becomes urgent, you’ll hear from a lot of people offering help. Most mean well. Some are excellent. A few may steer you toward the route that suits them rather than you. This checklist isn’t about any particular firm or profession. It’s a set of factual signals that tell you to slow down, ask questions and get a second opinion before you sign.
The checklist
Tick any that apply to advice you’ve received:
| Warning sign | Why it matters | What to do |
|---|---|---|
| Pressure to decide or sign the same day | Big decisions made under pressure are hard to undo | Ask for 48 hours and a written summary |
| “Liquidation makes the IRD debt disappear,” with nothing about guarantees, current accounts or PAYE | Those can survive liquidation | Ask specifically what happens to each |
| Suggestions to move assets, customers or contracts into a new company first | Can breach director duties and the phoenix rules | Get independent legal advice first |
| Someone offering to act as liquidator who isn’t on the licensed register | Insolvent liquidations need a licensed practitioner | Check the Companies Office register |
| No written fee estimate, or vague answers about who pays | Fees come first from company assets | Ask for the estimate and basis in writing |
| Advice to stop talking to IRD or ignore letters | Silence speeds up enforcement | Keep engaging, directly or through an authorised adviser |
| “Guaranteed” write-offs | Companies can’t use serious hardship relief; IRD decides | Ask what legal ground the write-off rests on |
| No mention of funding or an instalment arrangement | You may be missing the options that keep you trading | Ask why they’ve been ruled out |
| Fees payable upfront before any work, with no refund terms | You carry all the risk | Ask what you get if it fails |
Why do these signs matter?
Pressure. Statutory demands and liquidation applications do have real deadlines. A good adviser will tell you exactly what they are and use them to plan, not to rush you past questions.
Moving assets. The NZ Insolvency Services Standard requires its members to decline to advise an insolvent entity on how to structure its affairs so that assets become unavailable to creditors (CA ANZ). If someone suggests it, that’s a strong signal. Read phoenix rules.
Licensing. Since 1 September 2021, insolvent liquidations, administrations and receiverships must be handled by a licensed insolvency practitioner. Check the register.
Write-offs. IRD’s practice statement makes clear that serious hardship relief is for individuals, and that company debt is written off only on narrow grounds (SPS 18/04).
Got advice that ticks a box above? Get a second view on funding before you sign. Talk to us, with no credit check to enquire.
What does good advice look like?
- It starts with your options, including paying IRD, an arrangement or funding, before formal insolvency.
- It explains what happens to you personally: guarantees, current account, PAYE exposure.
- It gives fees in writing, with an estimate and the basis of charging.
- It tells you who the adviser works for once appointed.
- It encourages a second opinion from your accountant or lawyer.
- It’s comfortable with the facts, including official sources you can check yourself.
Is all insolvency advice suspect?
No. Licensed insolvency practitioners do essential work, and when a business genuinely can’t continue, a well-run liquidation or administration protects creditors and can protect directors from making things worse. The point of this checklist is to make sure the route you take is the right one for you, and that you understand what it means.
Who should you call first?
We suggest an order: your accountant (is the business viable?), a lawyer if there’s a legal deadline, a funder (can IRD be paid?), and then, if needed, a licensed insolvency practitioner. Our before you call anyone page sets this out, and our questions to ask any adviser checklist is designed to take into the meeting.
Where to complain
If you have concerns about a licensed insolvency practitioner’s conduct, competence or fees, you can complain to NZICA, the accredited body (Companies Office). For a chartered accountant or lawyer acting in another capacity, their professional body handles complaints.
What about calls and messages you didn’t ask for?
After a liquidation application is filed, or once a company’s financial trouble becomes known, directors sometimes receive unsolicited approaches. Treat them like any other advice: check who the person is, what they’re qualified to do, and how they’re paid. Be especially careful with anyone who already seems to know a lot about your situation and wants an answer today. And if someone claims to be calling from IRD, hang up and ring IRD back on a number from its official website before discussing anything. Our page on IRD calls and visits explains what genuine contact looks like.
How do you slow things down safely?
If a deadline is real, slowing down doesn’t mean doing nothing. It means using the time well: confirm the deadline with a lawyer, get your myIR balance, ask your accountant whether the business is viable, and find out whether funding could clear the debt. Those four steps can usually be done in two or three working days, and they give you a solid footing for any decision, including the decision to appoint a licensed practitioner if that’s genuinely the right path. Our statutory demand guide lays out a day-by-day plan.
Get a second view before you sign
If someone has advised you to liquidate, restructure or sign up for a service because of IRD debt, get a funding answer first. There’s no credit check to enquire, we don’t pass your details on to anyone, and a real person will give you an honest view, including if we think the business can’t be saved. Accurate figures help us give you that answer quickly.
Frequently asked questions
How do I know if tax debt advice is trustworthy?
Check qualifications and any licence, get fees in writing, ask what the plan means for guarantees, current accounts and PAYE, and get a second opinion from your own accountant or lawyer before signing.
Is it a red flag if an adviser says liquidation will make the IRD debt go away?
Only if that's the whole story. The company's tax debt may go, but personal guarantees, overdrawn current accounts and PAYE-related exposure can remain. Good advice covers all of it.
Should I ever stop talking to IRD on an adviser's instructions?
No. You can authorise an adviser to talk to IRD for you, but going silent moves you down IRD's escalation path. Stay engaged.
What if I've already signed something?
Read it carefully, ask the adviser for a written explanation of fees and next steps, and get independent legal advice quickly. If it involves a licensed practitioner and you're concerned about conduct or fees, NZICA handles complaints.
Official and reputable sources (checked October 2026)