The amount of KiwiSaver employee deductions and employer contributions not passed on to Inland Revenue since the scheme began was just $24.9 million as at June 30 2016.
This is $4.45 million less than the rolling debt figure as at June 30 2015, a 15.2% reduction, and is a result of Inland Revenue’s successful ongoing debt recovery work programme.
KiwiSaver debt at June 30 2016 was made up of $12.32 million in employee contributions, $9.34 million in employer contributions, and $3.24 million in penalties and interest.
Employee contributions not passed on to IR by employers are guaranteed by the Government.
During the life of the KiwiSaver scheme, Inland Revenue has passed on $7.96 billion in employer contributions to KiwiSaver scheme providers. This means 99.87% of employer contributions have been passed on to KiwiSaver scheme providers.
KiwiSaver debt is a rolling total and includes employee and employer contributions not paid to IR over the life of the scheme, plus penalties and interest for non-payment. It remains less than 0.5% of the total Inland Revenue tax debt portfolio.
Inland Revenue spokesperson Rowan McArthur says the vast majority of employers do meet their return filing and payment responsibilities, and any employer who’s having trouble meeting their obligations is encouraged to get in touch with the agency as soon as possible.
“When employers don’t pass on the deductions they are required to, we will take action if we are unable to resolve the situation and implement a repayment plan.
“If an employer continues to be non-compliant, this could result in further action such as an application for liquidation, bankruptcy or prosecution.”
Recovery of unpaid amounts can also include placing deduction notices on other funds held by an employer; registering caveats and mortgages over properties; and obtaining personal guarantees or solicitors’ undertakings.
Key statistics:
- As at 30 June 2015 there were 15,242 employers with KiwiSaver debt
- As at 30 June 2016 there were 11,241 employers with KiwiSaver debt, 4000 fewer than the previous year
- As at 30 June 2015 there was $29.4 million in outstanding KiwiSaver debt, $4 million less than the previous year
- As at 30 June 2016 there was $24.9 million in outstanding KiwiSaver debt, $4.5 million less than the previous year