What should I do if my business does not have enough cash to pay IRB?

You should immediately talk to a competent tax expert who can assist you to deal direct with the IRB on your behalf. There are a number of options available:

1.    Uncollectable status?

If you can convince the IRB that your cash inflow is less than your cash outflow, the IRB may delay collection or give you easy instalments. During this time, penalties and interest may continue to accrue. However, if you are unable to convince the IRB that you will make a profit in the future, the IRB may come after each officer of the company responsible for withholding, collecting and/or paying of tax due.

2.     An installment agreement?

This is when you agree to pay the amount owed by monthly instalments. However, interest and penalties may continue to accrue.

3.     An Offer in Compromise?

This means the IRB have to settle for a portion of what is owed when there appears little likelihood that it will receive the full amount. You must also convince the IRB that an installment agreement would not be appropriate due to the nature of your business

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