IRD credit reporting: when company tax debt goes on your credit file

For years, tax debt was something only you, your accountant and IRD really knew about. That has changed. Since 1 April 2026, larger or longer-running company tax debts can appear on the company’s credit file, where banks, lenders, landlords and suppliers can see them. This page explains exactly when that can happen and how to keep it from happening to you.

Time-sensitive: rules as published by IRD and checked in October 2026. We review this page every quarter.

When can IRD report company tax debt?

IRD’s 2026 update says a company can be reported when it meets either of these conditions (IRD):

Condition	What it means in practice
GST, PAYE or income tax debt over $150,000 that is 90 days overdue	A large debt that has been left for about three months
Debt unpaid for more than 12 months that equals 30% or more of assessable income	A smaller company with a long-running debt that is large compared with its income

The rules cover companies only. Sole traders and individuals aren’t credit-reported under this scheme.

What else changed in 2026?

Three procedural changes make reporting easier for IRD:

1. Reasonable effort is simpler. IRD now meets the “reasonable effort to collect” test once it has sent at least two automated overdue tax notices, including notices sent in myIR. Personal contact is no longer required.
2. The Notice of Intent goes to the company. It no longer has to be served on every director, and it’s issued in myIR or by standard post rather than by courier.
3. More warning in billing. IRD says businesses get advance signals through their normal billing notices before the formal notice arrives.

The practical effect: it’s now quite possible for a busy director to miss the warnings entirely if nobody is watching the company’s myIR account. Our page on IRD overdue notices explains why that inbox matters so much now.

Who receives the information?

IRD’s list of approved credit reporting agencies, updated 8 September 2026, names Centrix, CreditWorks, Equifax and Experian (IRD). Lenders, suppliers offering trade credit and landlords commonly use these agencies when deciding whether to deal with a business.

How many companies have been reported so far?

Early numbers are small but growing. IRD’s quarterly report for October to December 2025 said it sent 60 Notices of Intent to businesses owing more than $150,000. Of those, 34 were credit-reported and had liquidation pursued, while 26 (43%) engaged with IRD and were working to resolve the debt (IRD). In other words, engaging after a Notice of Intent made a real difference.

Close to the $150,000 line, or past 90 days? Ask whether funding can clear it before a Notice of Intent arrives. No credit check to enquire.

What does a credit report mean for the business?

A reported tax debt can affect the business in ways that go well beyond IRD:

• Borrowing: banks may decline new facilities or reviews, and some lenders tighten terms.
• Suppliers: trade accounts may move to cash on delivery or shorter terms.
• Landlords and leases: new leases or renewals can become harder.
• Tenders and contracts: some clients run credit checks before awarding work.

That’s on top of the collection steps IRD can still take, including deduction notices and statutory demands.

How do you stay off the list?

The original legal conditions for reporting, set out when the power was introduced, included that the debt isn’t disputed, that there’s no pending relief application and that there’s no instalment arrangement in place. IRD’s 2026 update doesn’t list every condition, so confirm your own position with IRD. In practical terms, these steps help:

1. Keep the debt below the triggers. Pay down large balances before they pass $150,000 and 90 days.
2. Engage early. Talk to IRD before or as soon as overdue notices appear.
3. Set up a formal arrangement if you can afford one, and keep to it.
4. Clear the debt in full with funding if the amount is large and the business is viable.
5. Watch myIR weekly. Make sure someone with authority sees every notice.

An illustrative example

Illustrative only. Not a real client and not an offer.

An Auckland wholesale company owes about $210,000 in GST and income tax, now 70 days overdue. Its bank facility is up for review in four months. The directors realise a credit report would land just before the review. A property-secured loan over a director’s investment property clears the debt at day 80, the company never reaches the reporting stage, and the bank review goes ahead with a clean tax account.

Can you remove a credit report once the debt is paid?

Paying the debt removes the reason for any further reporting. How a past entry is shown, and for how long, depends on the credit agency’s own rules and the law that governs credit reporting. If your company has been reported, ask the agency directly how your file now reads and keep IRD’s confirmation of payment. When you next apply for finance, explain the history briefly and show the cleared balance.

Clear it before the 90 days are up

If your company’s tax debt is near or over the thresholds, start a confidential enquiry. There’s no credit check involved at this stage, we don’t sell or circulate your enquiry, and a real person who understands the 2026 rules will call you. Please give accurate figures for the balance, how long it’s been overdue and any property you could use, so we can tell you quickly whether clearing it in time is realistic.