1 00:00:00,120 --> 00:00:02,240 Speaker 1: If you still owe the ii D money, you might 2 00:00:02,279 --> 00:00:03,640 Speaker 1: want to get on top of it because they're going 3 00:00:03,680 --> 00:00:06,880 Speaker 1: to start reporting people who don't pay their taxes to Centrics, 4 00:00:06,920 --> 00:00:09,879 Speaker 1: which means it's going to affect your credit rating. Keith 5 00:00:09,920 --> 00:00:12,760 Speaker 1: McLaughlin is the managing director of Centrics and with US high. Keith, 6 00:00:14,040 --> 00:00:15,720 Speaker 1: this is a great move, isn't it? 7 00:00:16,720 --> 00:00:18,560 Speaker 2: Well, it is, but I think I should point out 8 00:00:18,560 --> 00:00:21,639 Speaker 2: that this does relate to company debt, not to personal debt, 9 00:00:21,760 --> 00:00:26,120 Speaker 2: so at the stage the only parties affected are companies 10 00:00:26,120 --> 00:00:26,759 Speaker 2: in New Zealand. 11 00:00:27,160 --> 00:00:29,440 Speaker 1: But the impact of it is that it's more transparent 12 00:00:29,480 --> 00:00:31,680 Speaker 1: and more honest, isn't it Because if a company is 13 00:00:31,720 --> 00:00:34,720 Speaker 1: owing money to IRD and then turns up on your books, 14 00:00:34,920 --> 00:00:36,400 Speaker 1: others will not lend to it as well. 15 00:00:37,240 --> 00:00:41,600 Speaker 2: Well, that's correct. Historically, if the text debts aren't disiplated 16 00:00:41,600 --> 00:00:43,720 Speaker 2: on a credit report, then somebody does a credit report 17 00:00:43,760 --> 00:00:47,160 Speaker 2: assumes that everything is fine, totally oblivious to the fact 18 00:00:47,159 --> 00:00:49,080 Speaker 2: that there may be a significant debt o into the 19 00:00:49,120 --> 00:00:54,640 Speaker 2: text department and that could result in them advancing credit 20 00:00:54,960 --> 00:00:57,960 Speaker 2: or providing goods and services and really being caught out. 21 00:00:58,400 --> 00:01:01,400 Speaker 1: Keith, Australia already does this. Why doesn't our IRD do 22 00:01:01,480 --> 00:01:02,720 Speaker 1: it well. 23 00:01:03,160 --> 00:01:06,000 Speaker 2: We started the process back in twenty seventeen, and at 24 00:01:06,040 --> 00:01:11,160 Speaker 2: that stage they did introduce the ability to load tax 25 00:01:11,200 --> 00:01:14,120 Speaker 2: debt back in twenty seventeen, but it was a very 26 00:01:14,200 --> 00:01:18,040 Speaker 2: cumbersome method and I think Australia really shortcut it. They 27 00:01:18,360 --> 00:01:21,600 Speaker 2: dropped the process, made a lot easier to load their 28 00:01:21,600 --> 00:01:25,400 Speaker 2: debts with a credit bureau. And I think having had 29 00:01:25,440 --> 00:01:27,200 Speaker 2: another look at what they do in Australia, I think 30 00:01:27,200 --> 00:01:30,319 Speaker 2: the New Zealand decided that there is room to improve 31 00:01:30,360 --> 00:01:34,120 Speaker 2: the system here in New Zealand. And is it improved well, 32 00:01:34,319 --> 00:01:36,920 Speaker 2: very much so. I mean we're now really starting to 33 00:01:37,000 --> 00:01:40,920 Speaker 2: see the tax department moving a lot quicker. The text 34 00:01:40,959 --> 00:01:43,199 Speaker 2: leader is coming through to the bureau and it will 35 00:01:43,200 --> 00:01:48,120 Speaker 2: make a significant change to business credit going forward, because 36 00:01:48,200 --> 00:01:51,360 Speaker 2: that transparency will change the way that credit is provided 37 00:01:51,400 --> 00:01:52,520 Speaker 2: to businesses in New Zealand. 38 00:01:52,760 --> 00:01:55,400 Speaker 1: So these guys did a trial earlier this month on 39 00:01:55,480 --> 00:01:57,800 Speaker 1: this right and they had thirty different outfits and they 40 00:01:57,800 --> 00:01:59,560 Speaker 1: told those outfits, if you don't pay your taxes, you're 41 00:01:59,560 --> 00:02:01,520 Speaker 1: going to get beat, going to get reported to centrics. 42 00:02:01,520 --> 00:02:03,160 Speaker 1: And they said it was successful, but they didn't say 43 00:02:03,160 --> 00:02:04,760 Speaker 1: how many of them actually paid the taxes. Do you 44 00:02:04,800 --> 00:02:05,960 Speaker 1: know the outcome of the draw. 45 00:02:06,680 --> 00:02:09,880 Speaker 2: No, I don't. At the stage we effectively load it 46 00:02:09,919 --> 00:02:12,520 Speaker 2: and they're and part of the delay was setting up 47 00:02:12,520 --> 00:02:15,600 Speaker 2: systems so that they can update us, because no point 48 00:02:15,680 --> 00:02:17,840 Speaker 2: in just loading information onto the bureau and they're not 49 00:02:17,919 --> 00:02:21,200 Speaker 2: maintaining or updating that data. So that's the process that 50 00:02:21,240 --> 00:02:22,840 Speaker 2: we're going through at the moment as part of that 51 00:02:22,919 --> 00:02:25,200 Speaker 2: pilot is to make sure that it's not just dropped 52 00:02:25,200 --> 00:02:26,920 Speaker 2: into the bureau and forgotten about. I mean, it's an 53 00:02:26,960 --> 00:02:29,840 Speaker 2: obligation to keep it accurate, to keep it current, and 54 00:02:29,880 --> 00:02:32,639 Speaker 2: that's the process we're working through at the moment. So, yes, 55 00:02:33,480 --> 00:02:35,720 Speaker 2: they have started loading it, but we are still working 56 00:02:35,760 --> 00:02:38,560 Speaker 2: through at the moment. There's still a reasonable menu LI 57 00:02:38,560 --> 00:02:40,920 Speaker 2: input and we're trying to get that as electronic as 58 00:02:40,919 --> 00:02:43,760 Speaker 2: we can so there's automatic updates come through from the 59 00:02:43,800 --> 00:02:45,840 Speaker 2: text department into the Centric database. 60 00:02:45,919 --> 00:02:48,120 Speaker 1: Yeah, brilliant. Hey, thank you very much, Keith, Appreciate your 61 00:02:48,120 --> 00:02:51,160 Speaker 1: time as always, Keith Aglocklin, Managing Director of Centrics. For 62 00:02:51,280 --> 00:02:54,520 Speaker 1: more from Hither Duplessy Allen Drive, listen live to news 63 00:02:54,600 --> 00:02:57,480 Speaker 1: talks it'd be from four pm weekdays, or follow the 64 00:02:57,520 --> 00:02:59,160 Speaker 1: podcast on iHeartRadio.