More companies going into liquidation after increased enforcement by IRD

Company liquidations have increased significantly, despite positive lending trends and eased interest rates.

The latest Centrix Credit Indicator for August shows company liquidations are up 26 percent year-on-year, partly due to increased enforcement activity by Inland Revenue.

But chief operating officer Monika Lacey said the jump was nothing to be concerned about.

“I think the important context to provide here is that in New Zealand, we have over 700,000 registered businesses, of which 600,000 or nearly 600,000 are active.

“So, as an actual number of businesses that are going into liquidation, when you’re talking in the hundreds, it is a very…