Inland Revenue has today released its latest figures for KiwiSaver alongside a stark warning to non-compliant employers.
“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,” said spokesperson Rowan McArthur.
“If an employer continues to be non-compliant, this could result in further action such as an application for liquidation, bankruptcy or prosecution,” he added.
Despite the warning, McArthur stressed that the vast majority of employers do meet their return filing and payment responsibilities.
Since the scheme began in 2007 up until June 30, 2016, the amount of employee deductions and employer contributions not passed on Inland Revenue is just $24.9 million. This is actually $4.45 million less than the rolling debt figure as at June 30 2015.
The Inland Revenue cited the 15.2 reduction as a result of its ongoing debt recovery work programme. As of June 30, 2016, KiwiSaver debt was made up of $12.32 million in employee contributions, $9.34 million in employer contributions, and $3.24 million in penalties and interest.
During the life of the KiwiSaver scheme, Inland Revenue has passed on $7.96 billion in employer contributions to scheme providers. This means 99.87 per cent of employer contributions have been passed on.
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, 4,000 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
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