Changes to Sharing Information About Unpaid Tax

Changes have been introduced to how information about unpaid tax is shared with credit reporting agencies. These updates are aimed at strengthening tax compliance and improving transparency around significant tax debt.

The issue
Credit reporting can have a direct impact on a business’s credit rating. It was introduced to encourage timely payment of tax obligations and to provide greater visibility where tax debts remain unpaid.

A business may be credit reported when certain thresholds are met. This includes situations where GST, PAYE, or income tax debt exceeds $150,000 and is more than 90 days overdue. It can also apply where tax debt has been unpaid for more than 12 months and is equal to 30 percent or more of the taxpayer’s assessable income.

In addition, Inland Revenue must have made reasonable efforts to collect the debt and must provide formal notification at least 30 days before sharing the information with a credit reporting agency.

What has changed
Several operational changes have been made to the credit reporting process.

Reasonable efforts to collect debt are now considered met once at least two automated overdue tax notices have been issued. This includes notices sent through myIR.

Direct personal contact with the business is no longer required. Communication with company directors or tax agents will now satisfy this requirement.

There are also changes to the Notice of Intent process. The 30 day Notice of Intent to disclose no longer needs to be served on all company directors. From 1 April 2026, this notice can be issued through myIR or by standard post instead of courier.

In addition, work is underway to extend the sharing of unpaid tax information to other approved credit reporting agencies. This will increase visibility across the credit reporting system.

What this means for your clients
These changes place greater importance on monitoring tax communications and managing overdue debt.

Businesses that meet the credit reporting thresholds will receive reminders during the billing cycle that credit reporting may occur before a Notice of Intent is issued.

Notices of Intent will now be delivered electronically or by standard post. This makes it important to ensure that contact details are current and regularly reviewed.

myIR access should be active and up to date. This helps ensure that important notifications are not missed.

Notices of Intent will not be automatically redirected to tax agents. However, agents with a customer master link can view the notice in myIR.

What you should do
Review any outstanding tax positions and address overdue amounts as early as possible.

Ensure that business contact details and myIR access are accurate and regularly checked.

The updated approach reflects a more streamlined and digital process. It reduces manual contact while increasing the importance of timely action and accurate records.
If you are unsure how these changes apply to you or your clients, please reach out to us for guidance.