A buyer should request the seller’s official IRD tax compliance certificate, review recent income tax, GST, and payroll filings, and consult a tax professional to verify authenticity and check for outstanding liabilities, ensuring full compliance before completing the acquisition.

When doing due diligence in New Zealand, checking a seller’s IRD compliance is one of those steps that can feel nerve-wracking but absolutely necessary. The best process is to request official tax records and a current tax compliance certificate from the seller, review recent income tax, GST, PAYE, and provisional tax filings, and confirm there are no outstanding audits, disputes, or payment arrangements. Many buyers also have their accountant or tax advisor verify the records directly with the IRD where possible. It might feel awkward to dig this deep, but doing so gives real peace of mind you won’t inherit unexpected tax headaches after the sale closes.