New information sharing agreement to support compliance and enforcement

It will allow information to be shared between the two agencies for specific regulatory, compliance and enforcement purposes. This will support a more effective response to non-compliance, while maintaining strong privacy protections.

This agreement is a practical step toward addressing persistent issues such as phoenix company activity. A phoenix company is a company that fails and transfers its assets to another company with the same or similar name that is operated by the same directors, leaving behind unpaid debts. This often results in losses to creditors, other businesses, employees and the government (through unpaid tax revenue).

Improved information sharing between MBIE and IRD will support agencies to more effectively detect and address this type of behaviour using existing enforcement powers.

Additionally, the information sharing agreement helps both agencies more efficiently conduct investigations and initiate proceedings to address non-compliance in their respective areas. It will also restrict repeat offenders from acting as directors, and support prosecutions where appropriate.

There are strict privacy and confidentiality protections in place, allowing only certain information to be shared and for specific purposes.

Public consultation was undertaken in 2024 to shape the final agreement, which was approved by Cabinet on 31 August 2026.