News

Back

IRD’s Compliance focus on undeclared cash

In 2016 IRD will be continuing our compliance focus on undeclared cash in the construction industry and hospitality sectors, building on existing educational and enforcement action.

IRD’s initial construction sector campaigns in early 2015 focused on the trades in Auckland. This work has been broadened to cover all of New Zealand. Similarly, the hospitality sector is under the spotlight.

IRD is continuously improving processes to identify non-compliance, and analysis indicates some taxpayers are significantly under-reporting income. To correct IRD will continue their education and where appropriate, take enforcement action for those who don't comply.

IRD want to help people comply voluntarily and avoid penalties, use-of-money interest and even prosecution. If you're from these sectors and are concerned about undeclared income you can:

  • file accurate returns of income
  • provide details of all income from all sources
  • deposit all business income into their business bank accounts
  • make a voluntary disclosure, if necessary.

You could also receive the benefits of an early voluntary disclosure, for example:

  • shortfall penalties can be reduced by up to 100%
  • they can avoid prosecution action in most cases.

If you need help understanding your tax obligations IRD offer free advice services to get you back on track.
If you want help with your Tax check out IRD at how to get it right.