Citizenship, owed money to government

[s.Mason]

Hi, Hope you are all doing well.

I am currently completing an on-line application for citizenship.
I just saw a question regarding character issue: have you owed money to government agencies?

The problem is that I have been receiving working for family tax credit from IRD for a while because my wife was not working for 2 years to look after children.
She started to work on Sept 2022 and we updated our income around that time on IRD website so Ird stopped the payments but their calculation at the end of the year showed we have overpaid and we had to return money.

We paid back but now I am worried if this makes us a problem for our citizenship although it was not anybody's fault.

Any help or comment regarding this issue? Has anyone had any experience like this?
How serious is it?
I have paid the money, should I still declare it?

Note: I could officially apply for citizenship in April 2023 but I was so busy and delyaed until now

Thank you for your help.

[Kelerei]

You should definitely declare this. Not doing so may be contstrued as a false or misleading statement, and this can jeopardize your future New Zealand citizenship.

The paper application form (not sure about the online one) asks you if you have paid your government debt back, and if so, to provide evidence thereof.