Matt Harris

No.

negotiation.

You're not splitting the difference.

No, they're not.

And it goes from a really easy conversation to a harder one.

There are mechanisms in the Tax Administration Act that allow you to push a bit harder.

So this is a bit tax geeky but I'll do it anyway.

The Commissioner of Inland Revenue has an obligation to collect the highest net revenue over time applicable within the law.

So what that really means is that they have to collect the most amount of tax that is practical.

So if you've got someone who has a big tax bill with no money versus someone with a big tax bill and heaps of assets, well they'll go to the person with the assets.

But also they are, this part of the Tax Administration Act allows them to act in a way that's going to ensure that you continue to collect tax.

So for example, right,

If you have a business owner who's missed a tax payment but have made all their other ones, they've left it for like three years because their accountant never told them, they're more likely to write that off on the basis of ongoing future compliance than they are for someone who's just not compliant.

So there's other ways you can go with it, but it's a lot more difficult than it used to be.

Yeah.

And you can see why they do

it right because we see it unfortunately in here.

You do get to the point sometimes where the tax burden is high but the burden to get over and above it knowing that you're trading forward so you're dealing with the back tax but you're trying to pay your forward tax and you just have to look at it and go well is this realistic?

From their perspective they go

Is this realistic?