Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Student Loan Bill good reason for expats to be proactive

Expert opinion

10 March 2014

Student Loan Bill passed late last week – new warrant powers to prosecute overseas borrowers at the border. Good reason for expats to be proactive.

Pam Newlove, Partner, Privately Held Business and Chair at Grant Thornton New Zealand, looks at the ramifications of the Bill passed that empowers the IRD to obtain a warrant to prosecute people at the border with student loans in arrears.

The Student Loan Scheme Amendment Bill (No 3), aimed at borrowers who persistently refuse to make repayments, passed last night. From April 1, Inland Revenue will be able to seek an arrest warrant to deal with serious cases.

While some people may see this as an aggressive tactic, and potentially be an inhibitor for overseas New Zealanders returning home, something needed to be done as this situation was getting out of control. But it’s not all doom and gloom - provided people are proactive and plan ahead.

In our recent experience, the IRD have been motivated to settle matters quickly with people who are overseas with unpaid student loans.

Last week I was approached by a New Zealand expat in China who had received a letter from IRD about his student loan after a recent trip through New Zealand. He was applying for a senior role at a high profile New Zealand organisation. He was worried about how his student loan arrears might impact his job application when he returned to New Zealand again.

By working with the IRD we were, in a period of two days from first contact, able to obtained written confirmation of settlement from IRD. We managed to negotiate a significant reduction in the total debt due, without the need to fully repay the debt. The account just needed to be brought up to date.

So the message is clear, be proactive and address the situation, or indeed the long arm of the law will be ready to tap you on the shoulder.

- ends -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news