INTHEBLACK May 2025 - Magazine - Page 29
“We’re seeing complaints from people saying they’ve had
director’s penalty notices in respect of the company tax
debt, and they didn’t even know they were a director of the
company, let alone that they were actually liable for debts.”
RUTH OWEN, INSPECTOR-GENERAL OF TAXATION AND TAXATION OMBUDSMAN
KNOW THE SIGNS OF FINANCIAL ABUSE
In New Zealand, economic abuse is not categorised as a crime under legislation.
However, it can be partly addressed through the Family Violence Act 2018,
where certain forms of economic abuse may be recognised under psychological
abuse, says Brittany Goodwin, senior social policy and advocacy advisor,
Good Shepherd New Zealand.
“Recognising [that] it takes time
for legislation to change, we are
advocating for operational changes
within creditors, banks and lenders
to do what they can to not only
recognise economic harm and help
people through referral pathways,
but also to look at how debt can be
wiped where appropriate,” she says.
Accountants and finance professionals
should keep an eye out for the following
signs of potential abuse:
• Clients who bring signed documents
to meetings that the signee
never attends.
• When a client asks to add someone
as a company director.
• If a client is suddenly showing signs
of financial distress or difficulty
accessing their own accounts.
• Unexplained changes to financial
arrangements or assets being
transferred without clear consent.
• One party having excessive control
over the financial decisions of
another, as well as access to
important documents such as bank
statements or identification.
“Some of our clients tell us that
they’ve been in a relationship for
10 years and their partner knows where
their licence and passport are kept.
They can take those forms of ID and
approach creditors or banks and take
out loans without them knowing,
or even forge their signature,”
Goodwin says.
“A major focus for us is ensuring
that banks, financial services and
accountants, when relevant, are able
to recognise these signs and, most
importantly, become more aware that
economic abuse is happening,” she adds.
CPA Australia has resources available
for accountants to help prevent
financial abuse and its impact.
intheblack.cpaaustralia.com.au 29
