Dave Ananth, Senior Tax Lawyer

11/07/2026

"GST is becoming working capital. Why earlier intervention could save viable businesses"

The Issue
GST belongs to the Crown, but operating a business under current economic pressures forces owners into a strict hierarchy of survival. When margins shrink, immediate expenses like wages, suppliers, and rent take priority. Because GST sits in trading accounts for weeks before it is due, it quietly becomes accidental working capital. Missing the first payment triggers a trap where compounding interest and new tax cycles quickly turn a manageable cash flow issue into an unpayable debt.

The Solution
We must change how we manage tax debt. Inland Revenue already holds real-time filing data and has the opportunity to use analytics earlier, stepping in with proactive instalment plans to save vulnerable but sustainable businesses. For owners and advisers, the solution requires separating turnover from liquidity by immediately moving GST into a dedicated account at the point of invoice. Engaging early addresses the cash flow cause rather than just punishing the tax consequence.

The Data
Outstanding GST debt reached 3.3 billion dollars, representing more than a third of the country's total 9.3 billion dollar tax debt book. With the use-of-money interest debit rate at 8.97 percent, compounding interest and subsequent filing periods frequently cause an initial 30,000 dollar liability to grow into a debt exceeding 80,000 dollars.

Read the full article here : https://www.interest.co.nz/business/139325/gst-becoming-working-capital-why-earlier-intervention-could-save-viable-businesses

Meridian Partners - Barristers & Solicitors https://mplaw.nz/

GST is becoming working capital. Why earlier intervention could save viable businesses, says Dave Ananth

25/06/2026

Recent media coverage highlights a critical issue facing many overseas New Zealanders: the compounding reality of long-term student loan debt and the severe consequences of border arrests.

As a Tax Barrister at Meridian Partners specialising in tax negotiations and student loan debt, this is a conversation I have every day.

When people move abroad, the lack of automatic wage deductions means a loan can easily be forgotten. Decades later, a baseline debt of $30,000 can balloon to $150,000 due to compounded interest and penalties.

The IRD often views these cases strictly as a file number. But behind every student loan, there is a person, a family, a mortgage, or personal hardships like illness and mental health struggles.

Navigating this requires a realistic approach. Having worked closely with these frameworks, I know exactly what resources the IRD has at their disposal—it is rarely worth fighting unless a genuine error has been made. Instead, the focus must be on structured negotiation.

Ultimately, resolving these compounding issues is about more than just numbers; it gives me great satisfaction to help people clear the hurdles preventing them from finally coming home.

Read the full piece on Stuff: https://www.stuff.co.nz/nz-news/360997679/doctor-built-life-overseas-now-hes-been-arrested-airport-over-180000-student-loan-debt

The man returned to New Zealand to see his ailing father, but now can’t leave the country. He accepts he should have responded to IRD’s attempts to contact him sooner.

11/01/2026

🚨 Leaving New Zealand? Your Student Loan Doesn’t Stay Behind.

If you’re moving to Australia, the UK, Europe, or anywhere overseas, read this before you go.

If you are outside New Zealand for 183 days, Inland Revenue automatically classifies you as an Overseas-Based Borrower (OBB).

That one change quietly destroys a lot of people.

What changes

Once you become overseas:
• Your PAYE repayments stop
• IRD expects you to pay directly
• Your repayment becomes a fixed annual amount
• Penalties apply if you miss it

It doesn’t matter if:
– you’re on a working holiday
– you still work for a NZ employer
– you plan to come back
– you’re “just overseas for a bit”

183 days = overseas borrower.

Why people get hit years later

Most people never tell IRD they left.

So IRD back-dates their overseas status.
Then adds missed repayments.
Then adds penalties.
Then the bill explodes.

This is why people come back to NZ owing $50k, $80k, even $100k+ on a loan that used to be half that.

“But I didn’t know”

IRD doesn’t cancel penalties because you didn’t know.

Coming back doesn’t fix it

You don’t become NZ-based again just because you landed at Auckland Airport.
You must:
• be back 183 days
• notify IRD
• have your status changed

Until then, you’re still overseas in IRD’s system.

Digital nomads & remote workers

Working for a NZ company does not protect you.
Living overseas for 183+ days triggers the same rules.

The smart move

Before you leave — or if you’re already overseas:
✔ Tell IRD
✔ Check your balance
✔ Get your overseas repayment amount
✔ If you can’t pay, negotiate early

This is far cheaper than fixing it later.

Dave Ananth
NZ Student Loan & IRD Negotiation Lawyer
Helping overseas borrowers and returnees stop their student loans from exploding.