Some of the outcomes we’ve achieved for our clients
IRD writes off $300,000 of unpaid tax and penalties
Due to a unique and unfortunate combination of business, legal and personal difficulties, one of our clients was hit with a demand for over $350,000 of unpaid PAYE tax and default penalties. We looked into the background of the case and were able to put together a compelling summary of the situation that placed the tax issues in a new light. After negotiations, the IRD accepted Crawford Nelson’s settlement offer of $50,000.
Our client was able to settle the outstanding amount, draw a line under the situation and move on without the burden of a crippling debt.
Unpaid tax on Australian dividends led to $4,000,000 tax demand.
Two of our clients had been receiving dividends totalling around $6,000,0000 each on Australian shares. A misunderstanding about franking credits and imputation meant that the New Zealand tax on these dividends went unpaid for 11 years. When the New Zealand IRD received information from the Australian tax authorities, it wrote to our clients.
There was a request for huge amounts of information going back years. The initial IRD claim came to over $2,000,000 from each client in unpaid tax and penalties.
Over 15 months, Crawford Nelson painstakingly worked through the claim, calculated the actual income and negotiated with Inland Revenue on behalf of our clients. We were successful in arguing that only four years of dividend payments should be included in the assessment. Ultimately, this led to a $1,600,000 reduction in the amount owing. Our clients accepted this, and made the agreed payments in full and final settlement.
Four-year audit resolved in months, with a substantial debt write-off.
A company that contacted us was going through an IRD audit. This had dragged on for four years. After becoming involved, Crawford Nelson was able to bring the audit to a successful conclusion within just a few months.
After negotiations and interviews, the IRD agreed to reduce its assessment of unpaid tax from $1,800,000 to $600,000, and accepted $184,000 in full and final settlement. You can understand why the client was thrilled with this result.
Voluntary disclosure saves contractor from interest and penalties.
A contractor had not filed tax returns for nine years due to an innocent misunderstanding about employment status. After receiving advice from Crawford Nelson, a full and voluntary disclosure was lodged.
As a result of our representations, the IRD decided to assess just four years of unpaid tax instead of the full nine years. It also accepted the core amount of tax for each year and did not charge any further interest or penalties.