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Winter Energy Payment : Contents

Inland Revenue deduction notices

Inland Revenue may request for a client's unpaid taxes to be directly deducted from their benefit payments.

Note all Inland Revenue deduction notices are sent directly to the Central Processing Unit for processing.

The instructions of the deduction notice will be to deduct the lowest of either:

  • 10% of the total debt which Inland Revenue specify in the notice, on a weekly basis or
  • 20% of the client's gross earnings on a weekly basis

Where there are insufficient funds to cover the deduction, the Ministry of Social Development must advise Inland Revenue immediately that the deduction will not start or will start at a reduced rate.

Inland Revenue deductions have a lower priority than Child Support deductions.

For more information see:

Priority for deductions

Legislation

  • Deduction of tax from payments due to defaulters section 157 Tax Administration Act 1994
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