Thousands of Kiwis have had money taken straight from their bank accounts in the last few months, as Inland Revenue cracks down on unpaid tax.

Since mid June, IRD’s sent out over 16,500 notices warning people about planned bank deductions, RNZ reports.

That’s 25% more than what was sent out all of 2024, according to IR spokesperson Rowan McArthur.

He says they’re targeting customers who’ve repeatedly ignored contact with IR and appear to have funds available to cover what they owe in tax.

McArthur added that the department is also trying to set up payment plans where possible.

“We welcome customers contacting us so we can work with them to resolve their debt situation,” he says.

Between mid-June and September 30, a whopping 8,181 deductions had already been made, recovering about $17 million. 

Over 6,000 more deductions are currently in progress, worth roughly $5.5 million.

Chartered Accountants AUNZ tax leader, John Cuthbertson, told RNZ hat as of March, tax debt had hit a mega $9.3 billion.

“If you look at Budget 2024 and 2025, funding was allocated specifically for IRD to be more aggressive in terms of audit activity,” Cuthbertso says. “Debt is the focus and they certainly don't want to let it get any larger."

Cuthbertson reckons it’s best to tackle any debt early, noting some businesses have been “using Inland Revenue as a bank” by holding onto GST and PAYE instead of paying up.

But not everyone’s stoked about the tougher approach. Some accountants shared concerns that people are only getting a week’s notice before cash is taken out - hitting small businesses especially hard.

Deloitte tax partner Robyn Walker said IRD’s system upgrades mean it now has way more data easily accessible - and can act quickly.

“I’ve heard some feedback that some people think it feels aggressive,” she said, adding that the MyIR system now highlights tax debt more clearly when people log in.

If you’re stressing about a possible deduction, the advice is to get in contact with IR as soon as possible - to set up a payment plan, before things escalate.