Norling Law

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Tax debt is one of the most common issues facing New Zealand business owners right now.It is also one of the least under...
17/06/2026

Tax debt is one of the most common issues facing New Zealand business owners right now.

It is also one of the least understood.

Most business owners know that falling behind with IRD is bad. What they often don't know is how quickly the situation can escalate, what powers IRD actually has, and what options exist to resolve it before things get serious.

That is why Norling Law partnered with MoneyHub, New Zealand's leading independent financial guidance website, to produce a comprehensive guide covering the full lifecycle of business tax debt.

The guide covers:

How missed GST and PAYE payments compound through penalties and interest
IRD's enforcement powers: bank account deductions, redirecting customer payments, director pursuit, liquidation
Payment arrangements, penalty remission, voluntary disclosure and the disputes process
When to engage an accountant vs a tax agent vs a tax lawyer
Common scenarios including unfiled returns, failed PAYE obligations, audits and business closures

As MoneyHub's Head of Research put it: options exist, but they narrow the longer you wait. IRD is generally willing to negotiate with business owners who engage early and come with a realistic plan. The worst thing you can do is nothing.

If you or someone you know is dealing with IRD debt, this guide is the right place to start.

Read it following this link:
https://www.moneyhub.co.nz/tax-debt.html

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

New Zealand's overdue tax debt has hit $9.3 billion.That's not a typo. According to the latest IRD data, $9.29 billion i...
15/06/2026

New Zealand's overdue tax debt has hit $9.3 billion.

That's not a typo. According to the latest IRD data, $9.29 billion in assessed tax has passed its payment date and remains unpaid, with more than 527,000 taxpayers in arrears.

GST alone accounts for $3.26 billion. PAYE debt has grown 153% since 2020.

For business owners, here is what this environment means in practice:

→ IRD is ramping up enforcement. With billions outstanding, they are actively using their full range of recovery powers: bank account deductions, redirecting customer payments, pursuing directors personally, and initiating liquidation proceedings.
→ You are not alone, but being part of a crowd does not protect you. IRD pursues individual businesses regardless of the wider debt picture.
→ The options available to you depend heavily on when you engage. Businesses that come forward with a realistic plan fare significantly better than those who wait to be chased.
→ Cashflow problems are the most common cause. Poor management is not always the issue. Timing, inflation, and incorrect provisional tax estimates push even well-run businesses into arrears.

As Moneyhub's Head of Research put it in the guide Norling Law co-authored: 'The worst thing you can do is nothing.'

IRD is generally willing to negotiate with business owners who engage early. But that window does not stay open forever.

Read the full guide at the link below:
https://www.moneyhub.co.nz/tax-debt.html

Book a free consultation to discuss your situation.
https://norlinglaw.co.nz/book-a-consultation/

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

We hear this often from new clients: 'I wasn't sure if my situation was serious enough to call a lawyer.'It almost alway...
10/06/2026

We hear this often from new clients: 'I wasn't sure if my situation was serious enough to call a lawyer.'

It almost always is.

Not because every situation ends in litigation, most don't. But because knowing where you stand early gives you control over the outcome. It means you're making decisions from a position of clarity rather than anxiety.

At Norling Law, our initial consultations are designed to do one thing: give you an honest picture of your position.

Whether you're a business owner facing a creditor, a director worried about personal liability, a shareholder who feels pushed out, or a contractor who hasn't been paid, you don't need to walk in with a fully formed plan. You just need to show up.

We'll help you understand what the law says, what your options are, and what we'd recommend. From there, the decision is always yours.

If something has been sitting at the back of your mind, a dispute you've been managing, a debt that isn't resolving, a business relationship that's broken down, now is a good time to have that conversation.

We're here when you're ready.

Book a consultation:
https://norlinglaw.co.nz/book-a-consultation/

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

08/06/2026

Every time a major corporate collapse makes the news, the focus tends to be on the big numbers, the creditors owed millions, the employees left behind, the executives facing scrutiny.

What gets less attention is the ripple effect on small and medium businesses.

Because behind every large insolvency, there's usually a trail of smaller businesses who are owed money, suppliers, subcontractors, service providers, who find themselves at the back of the queue.

Here's what small business owners often don't know:

→ Unsecured creditors, which most trade creditors are, typically recover very little in a liquidation. Secured creditors get paid first.
→ If you've been supplying goods or services without a properly documented credit agreement or retention of title clause, your recovery prospects are significantly lower.
→ There are actions you can take before a debtor collapses, including issuing a statutory demand, that can put pressure on a debtor and potentially trigger restructuring before it reaches liquidation.
→ Timing matters enormously. Proactive creditors who move early almost always fare better than those who wait.

The current economic environment means more collapses are likely, not fewer. Now is the time to review how you're managing credit risk in your business.

Norling Law advises creditors and businesses on insolvency, debt recovery, and commercial disputes.

Get in touch with our team.
https://norlinglaw.co.nz/book-a-consultation/

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

If you're a contractor or subcontractor and you're waiting on payment, you're not alone.Payment disputes are the most co...
01/06/2026

If you're a contractor or subcontractor and you're waiting on payment, you're not alone.

Payment disputes are the most common legal issue in the construction industry, and the current economic environment, rising material costs, tighter margins, and high rates of insolvency, is making them more frequent and more serious.

Here's what you need to know:

→ Security of payment legislation exists to protect you. New Zealand's Construction Contracts Act gives contractors and subcontractors the right to claim progress payments and access fast-track adjudication if payment is disputed or withheld.
→ The process moves quickly, and so must you. Payment claims need to be served correctly, and response timeframes are strict. Missing a deadline can seriously compromise your position.
→ Adjudication is faster and cheaper than litigation. In most cases, adjudication can resolve a dispute in weeks rather than months, and if the adjudicator finds in your favour, the decision is enforceable.
→ Don't accept silence as an answer. If a payment schedule hasn't been issued in response to your claim, you may have additional rights.

Construction payment law is complex and time-sensitive. If you're in a dispute or haven't received payment you're owed, reach out to Norling Law today.

Book a consultation:
https://norlinglaw.co.nz/book-a-consultation/

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

30/05/2026

If you've been managing IRD debt quietly and hoping for flexibility, it's time to take it seriously.

The Inland Revenue has significantly ramped up its recovery activity following years of pandemic-era leniency. Directors are now receiving formal recovery notices at a higher rate, and IRD has reduced its appetite for informal repayment arrangements.

What this means practically:

→ Unpaid GST, PAYE, and KiwiSaver liabilities are actively being pursued
→ Directors can be made personally liable for company tax debts in certain circumstances
→ Waiting to respond reduces your options significantly
→ Once formal enforcement action begins, the window to act closes fast

The good news is that if you act before things escalate, there are pathways available, including payment arrangements, voluntary administration, and creditor compromise.

But those pathways narrow the longer you wait.

Norling Law works with business owners and directors to understand their exposure and explore their options. If IRD debt is a concern for your business, reach out to our team.

Book a consultation:
https://norlinglaw.co.nz/book-a-consultation/

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

29/05/2026

Starting a business with a partner is exciting. But what happens when the relationship breaks down?

Shareholder disputes are on the rise across Australia and New Zealand, and in most cases we see, the same issue sits at the root of it: the shareholders' agreement either didn't exist, or didn't cover what it needed to.

A robust shareholders' agreement should address:

→ Each shareholder's roles and responsibilities
→ How decisions get made (and what happens when there's a deadlock)
→ How shares are valued and transferred if someone wants to exit
→ What happens if a shareholder dies, becomes incapacitated, or is no longer contributing
→ Dividend and profit distribution expectations
→ Dispute resolution mechanisms, before things escalate to court

The time to put this in place is before a dispute arises, not after.

If you're in a business partnership and don't have a current, comprehensive shareholders' agreement in place, or if you haven't revisited yours recently, it's worth a conversation.

Norling Law advises on shareholder agreements and dispute resolution. Reach out to our team to find out where you stand.

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

$558,000 in IRD debt. Negotiated away. While the number itself is striking, the more important story is how it happened....
27/05/2026

$558,000 in IRD debt. Negotiated away. While the number itself is striking, the more important story is how it happened.

IRD debt has a way of feeling inescapable. The Inland Revenue has significant collection powers, and for many business owners and directors facing tax debt, the assumption is that there's no room to negotiate, you either pay it, or face the consequences.

That's not always true.

In the right circumstances, and with the right legal strategy, it is possible to negotiate a resolution on IRD debt that significantly reduces what's owed. This might involve a creditor compromise, a structured arrangement, or another formal mechanism that the IRD is willing to consider when presented properly.

The key factors are typically: acting before things escalate to enforcement, understanding what options are available under the law, and having experienced representation when engaging with the IRD.

For the client in this case, the outcome was the elimination of $558k in tax debt, a result that changed what was possible for their business going forward.

If you're dealing with IRD debt and aren't sure what your options are, don't assume you're out of options. Get advice first.

Book a consultation:
https://norlinglaw.co.nz/book-a-consultation/

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

Most business owners know that missing a GST payment is a problem.What most don't realise is how fast that problem compo...
25/05/2026

Most business owners know that missing a GST payment is a problem.

What most don't realise is how fast that problem compounds.

According to the Moneyhub Tax Debt Guide for Business Owners, published in partnership with Norling Law, a $20,000 missed GST payment can grow to over $23,000 within months, once IRD penalties and Use-of-Money Interest are applied.

Here is why GST and PAYE debt is treated particularly seriously:

→ GST is money collected from your customers on behalf of the government. It does not belong to your business.
→ PAYE is deducted from your employees' wages and held in trust for IRD. Same principle.
→ Using either of these funds to cover cashflow — even temporarily — is treated more severely than ordinary income tax debt.
→ Directors can be held personally liable for unpaid GST and PAYE in certain circumstances.

The most common mistake? Treating these as just another bill to catch up on later.

They are not. IRD penalties compound daily. The balance grows while you wait.

The single most important step is early engagement. File your returns on time, even if you cannot afford to pay. That alone limits escalation.

If you are already behind, options exist. But they narrow the longer you wait.

We co-authored the definitive New Zealand guide to tax debt with Moneyhub. Read it in full HERE:
https://www.moneyhub.co.nz/tax-debt.html

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

22/05/2026

In over a decade of handling commercial disputes, one pattern comes up more than any other.

People wait.

They wait to see if the situation resolves itself. They wait because they're not sure they have a strong enough case. They wait because they're worried about the cost. They wait because they don't want to 'make it a big deal.'

And by the time they do come to us, options that were available six months ago are no longer on the table.

Here's the reality of commercial and insolvency law: the law rewards those who act promptly. Limitation periods exist. Evidence becomes harder to obtain over time. Debtors dissipate assets. Deadlines pass. Leverage that existed early in a dispute disappears.

You don't need to have made up your mind about what to do. You don't need to be certain you want to litigate. You just need to understand what your options are, and the only way to do that is to ask.

An early conversation costs you very little. Waiting can cost you everything.

If you're dealing with a commercial dispute, an insolvency issue, or a situation that's been quietly stressing you out, reach out to Norling Law. We'll give you a clear picture of where you stand.

Norling Law is a specialist Litigation and Dispute Resolution Law firm with a core focus on Insolvency and Restructuring.

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