Quick answer
A New Zealand lender will want to know whether your GST, PAYE and income tax returns are filed, whether any IRD balance is overdue, and whether an instalment arrangement is in place and being kept. You can show this quickly with screenshots or summaries from myIR. IRD debt is considered case by case, and plenty of fast loans are used to clear it. Undisclosed tax debt found in the bank statements causes more delay than the debt itself.
Key points
- Lenders check filing as much as paying — unfiled returns are a bigger worry than a known balance.
- myIR shows balances, returns and arrangements in one place.
- An instalment arrangement that is being kept is a positive signal.
- Inland Revenue has stepped up collection of GST and employer debt through 2025–2026.
- GST rate
- 15%
- GST registration
- From $60,000 turnover
- PAYE due
- 20th of the following month
- IRD debt
- Considered case by case
Tax is the topic many business owners would rather not raise on a loan call. In practice, it’s one of the first things a fast lender asks about, because tax debt is common, it moves quickly, and Inland Revenue has stronger collection tools than most creditors. The upside: your IRD position is easy to prove, and when it’s disclosed early, it rarely stops a deal.
What does a lender want to know about my tax?
Three questions, in order of importance:
- Are your returns filed? GST, employment information and income tax returns up to date.
- Is anything overdue? The balance owing, and how old it is.
- Is there a plan? An instalment arrangement, and whether it’s being kept.
Filing comes first because an unfiled return is an unknown. A lender can work with a known balance. It’s much harder to work with a number nobody has calculated yet.
Which taxes come up most often?
| Tax | Key facts (Inland Revenue) | What a lender looks for |
|---|---|---|
| GST | Charged at 15%; registration required from $60,000 turnover | Returns filed for each period; no large overdue balance |
| PAYE and employment information | File within 2 working days of each payday (electronic); pay by the 20th of the following month | Regular payments; no build-up of employer debt |
| Provisional tax | Applies if your last year’s residual income tax was more than $5,000 | Instalments paid or a clear plan for them |
| Income tax (terminal) | Normally due 7 February, or 7 April with a tax agent’s extension | Paid or arranged |
GST and employer debt deserve special attention. Inland Revenue’s January 2026 update said it was continuing to focus on collecting overdue GST and employer debt and returns, and its October 2025 release reported issuing 16,500 bank deduction notices since mid-June 2025 — 25 per cent more than for the whole of the previous year. Lenders know this, and they’ll want to understand where you sit.
How do I show my IRD position quickly?
Everything a lender needs is in myIR:
- Account balances for GST, employer and income tax.
- Returns — filed and outstanding.
- Arrangements — the arrangement details and payment history.
Take clear screenshots or download summaries the same day you enquire, so the figures are current. Add a one-line note: “GST arrangement in place since March, all instalments paid” tells the story in one go.
If your accountant manages your tax, ask them for a short email confirming the position. It doesn’t need to be formal.
Does an instalment arrangement help or hurt?
Generally it helps. Inland Revenue lets businesses apply for an arrangement in myIR when they can’t pay in full. It notes that interest is charged on overdue amounts and included in the instalments. An arrangement that’s being kept shows you’re dealing with the problem.
What concerns lenders is an arrangement that has defaulted, or debt with no arrangement at all and recent enforcement action. Even then, a property-secured loan used to clear the debt can sometimes be the cleanest way out. See business loans to pay IRD for how those are structured, or IRD deduction notices if Inland Revenue has already contacted your bank.
What if the tax position is messy?
Be upfront. Tell the specialist what’s owed, what’s unfiled and what you’re doing about it. IRD debt and past credit issues are considered case by case. Mid-way through a messy situation is exactly when a straight conversation helps most — you can start it here and explain on the call.
Can I still get funded quickly if Inland Revenue is chasing me?
Often, yes — but the clock matters more. If Inland Revenue has called, sent letters or issued a deduction notice to your bank, every day can change the picture. A lender will want to know exactly what has been received and when. Bring the letters, note the dates, and check the current balance in myIR on the day you enquire.
Unsecured options can sometimes move the same day for smaller balances. Larger debts are often better handled with property-secured funding, which can be paid directly to Inland Revenue at settlement. Either way, the earlier you act, the more options stay open — and the less interest and penalty build up while you decide.
What tax habits make the next loan easier?
- Set aside GST from every sale into a separate account.
- File on time even when you can’t pay — then call or use myIR to arrange payment.
- Keep PAYE separate from operating cash.
- Diary provisional tax dates and plan for them; our GST and cash buffer guide explains one simple method.
Illustrative example: a disclosed GST balance
Illustrative only. A Napier landscaping company owes $38,000 in GST, with all returns filed and an arrangement that has been paid on time for five months. The owner discloses it on the form and sends a myIR screenshot. The lender structures a loan that pays out the balance directly to Inland Revenue, ending the arrangement and its ongoing interest. The tax was part of the solution, not an obstacle.
Ready to talk about your tax position without judgement?
We speak with business owners about IRD debt every day. A short enquiry takes about a minute and there’s no credit check when you first enquire. Your details stay with one team rather than being distributed, and a real person calls to discuss it properly. Please tell us the real numbers — it’s how we find the right fit first time.
Frequently asked questions
Will a lender see my IRD debt?
Lenders usually see payments to Inland Revenue in your bank statements and will ask about your tax position. It's faster to disclose it on the form and send a myIR summary.
Is an instalment arrangement a problem?
Not usually. An arrangement that's up to date shows you're managing the debt. Lenders will want to know the balance, the instalment amount and whether payments have been made on time.
What if my returns aren't filed?
File them, or at least have your accountant confirm when they'll be filed. Unfiled returns make it hard for anyone to know the true position.
Can a loan be paid straight to Inland Revenue?
Often, yes. Paying the funds directly to Inland Revenue is common when a loan is clearing tax debt.
Does IRD charge interest on an arrangement?
Yes. Inland Revenue says it charges interest on overdue amounts and includes it in instalments, and overdue balances may attract use-of-money interest and penalties.