IRD take fraud seriously. Their systems are designed to prevent people from receiving refunds they aren’t entitled to. They’re also designed to protect your personal information.
You need to keep a close watch on your bank accounts if you owe IRD money for overpayment of Working for Families credits or for overdue Child Support payments.
A small number of people try to avoid paying the tax they should or boost entitlements to social benefits by using inappropriate or unlawful tax structures. IRD call this - aggressive tax planning (ATP). Inland Revenue will investigate if they suspect your planning is not quite on the level.
Although IRD is not required either to alert taxpayers when considering whether to audit or advise that an audit has begun, the IRD’s practice is that a taxpayer will generally be given notice, in writing, advising them that they have been selected for an audit, or that an audit is underway.
The specific issues that IRD are currently looking at include:
An instalment arrangement allows you to pay the tax in full by spreading it over a period of time. IRD will consider your situation, and look at your future income as well as other issues before agreeing to an instalment arrangement.