Maybe the IRD should try tough love SPQR restaurant ’s demise highlights two things ( NZ Herald , July 19). Firstly, the Inland Revenue Department (IRD) is not very good at collecting debts, and secondly, it’s not a bright idea to use it as a back-up bank for long, and certainly not long enough to rack up a $1.5 million debt.
Unfortunately the IRD’s approach seems to be to allow penalties and interest to accumulate to the point where the business has no choice but to go into liquidation, with consequent job losses and the writing-off of tax owed. It would be much better if the IRD was proactive from the start in identifying businesses that fail to pay their taxes on time. Tough love might be more effective in getting them back on track than the current policy which effectively provides an extra line of credit, albeit at usurious interest rates.
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