There are a lot of self employed Kiwis who get themselves into situations where they owe the IRD money and this is often the case with people that are new to business or have experienced a change within their business either in the structure, the turnover or have had some debt collection issues.
When you have debt to the IRD you may want to borrow some money to clear up the debt.
It makes sense as it is generally a lot cheaper than the interest rates charged by the IRD and certainly it makes a lot of sense to avoid the penalties that they charge.
People can end up having debt with the IRD for a number of reasons and one of the biggest is the accountant has failed to assess the pending tax burden or filed late, so there is a tax bill to pay and not enough money has been put aside.