Tuesday, February 3, 2026

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Inland Revenue’s bank deductions spark complaints over heavy-handed debt recovery

Inland Revenue’s intensified debt recovery campaign has prompted complaints from taxpayers after deductions were made directly from their bank accounts without warning.

Since mid-June, the department has issued 16,500 deduction notices—25 percent more than all of last year—completing 8,181 deductions worth $17 million and collecting another $5.5 million through ongoing cases.

One woman, Lynette Davies told state-funded media the $1,000 weekly withdrawals to cover old child support debt were unaffordable and made without prior notice, while another taxpayer said money was taken unexpectedly, pushing their account into overdraft. IRD said it considers individual circumstances before acting and that increased enforcement follows new funding for compliance activities.

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6 COMMENTS

  1. Vote for the New Zealand Loyal Party with their the 1% tax proposal, and the IRD will no longer be needed, as the Treassury will have a streamlined system that is not intrusive, and most certainly will NOT take / steal money via debt recoveries, force majeurs, or penalties/fines!
    https://nzloyal.com/tax/

    Monetary & Taxation
    February 4, 2025 Published by Kelvyn Alp

    New Zealand Loyal – Monetary and Taxation Policy

    New Zealand will adopt a revolutionary economic framework, creating its own coin, credit, and currency, while introducing a 1% transaction tax to replace all other taxes. This policy aims to propel New Zealand to unprecedented prosperity by harnessing its natural resources, eliminating predatory market manipulation, and aligning monetary policy with national interests.

    Sovereign Currency Issuance

    1. Creation of New Zealand’s Own Currency: The Reserve Bank of New Zealand (RBNZ) will create new money ex nihilo to fund government expenditures, eliminating reliance on external borrowing and interest payments.

    2. Monetary Policy Alignment: The RBNZ will be brought under the New Zealand Treasury to ensure monetary policy is aligned with national interests and fiscal policy.

    Transaction Tax

    1. Replacement of All Other Taxes: A 1% transaction tax will be introduced on all financial transactions, including electronic payments, cash withdrawals, online transactions, and securities trades, replacing all other taxes.

    2. Revenue Allocation: Transaction tax revenue will be allocated towards funding public goods and services, including increased infrastructure investment.

    Increased Infrastructure Investment

    1. Exploitation of Natural Resources: New Zealand will invest in exploiting its natural resources, including the Great South Basin and other oil reserves, to drive economic growth and prosperity.

    2. Infrastructure Development: Increased infrastructure investment will focus on strategic sectors, such as transportation, energy, and education, to support long-term economic resilience.

    Removal of New Zealand Dollar from Market Manipulation

    1. Protection from Predatory Behaviour: The New Zealand dollar will be removed from market manipulation and predatory behaviour, ensuring economic stability and security.

    2. Elimination of Inland Revenue: Inland Revenue will be eliminated, simplifying the tax system and reducing administrative burdens on taxpayers.

    Benefits and Implications

    1. Increased Economic Resilience: New Zealand will enjoy increased economic resilience, driven by sovereign currency issuance, transaction tax revenue, and strategic infrastructure investment.

    2. Prosperity and Wealth: By harnessing its natural resources and eliminating predatory market manipulation, New Zealand will propel itself to unprecedented prosperity and wealth.

    3. Simplified Tax System: The 1% transaction tax will consolidate and replace various existing taxes, reducing complexity and administrative burdens on taxpayers.

    Conclusion

    New Zealand’s Sovereign Currency and Transaction Tax Policy marks a significant shift towards a more resilient, prosperous, and sovereign economy. By harnessing the power of sovereign currency issuance and a simplified transaction tax, New Zealand will break free from the shackles of predatory market manipulation and external borrowing.

    This policy will propel New Zealand to unprecedented prosperity and wealth, driven by strategic infrastructure investment, exploitation of natural resources, and a simplified tax system. As New Zealand takes control of its economic destiny, it will become a beacon of hope for nations seeking to reclaim their sovereignty and build a brighter future for their people.

    With this policy, NZ Loyal reaffirms its commitment to putting the interests of New Zealanders first, ensuring that the country’s economy serves the people, not just the privileged few. Together, we can build a more prosperous, resilient, and sovereign New Zealand for all.

    See also: https://nzloyal.com/new-zealand-loyal-1-transaction-tax/

    © 2025, All Rights Reserved
    Leader – avatar
    About the author: Leader
    Kelvyn Alp is the Leader of New Zealand Loyal.

  2. They have wasted public money so now its time to hollow out ordinary people…..disgusting National and its tax collector pet…..

  3. In a country with little employment prospects, low building and high unemployment, what will this policy bring to the nation?

    People living in cars, tents or worse. People with children not being able to feed them. People unable to keep warm and safe.

    This is not who we are.

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