Can Inland Revenue take money directly from my bank account or wages?

Yes, Inland Revenue has strong statutory powers of recovery under the Tax Administration Act 1994. It can issue a deduction notice requiring your employer to deduct amounts from your wages and pay them to Inland Revenue, or require your bank to deduct funds from your account to satisfy a tax debt, without needing to go to court first, in many circumstances. Before taking such action, Inland Revenue generally expects to have contacted you about the debt, and you should engage as early as possible. You can apply for an instalment arrangement to pay the debt over time, which may prevent enforcement action if you keep to it, or in cases of genuine hardship you can apply for a write-off or a relief from the debt, providing full details of your financial position. If you believe the underlying tax assessment is wrong, you may also need to address that separately through the disputes process. Seek advice promptly if you receive enforcement correspondence.