IRD’s media release this week is so interesting. They are coming down hard on non-compliance, and I am also seeing increased audit activity with my clients.
1. Property: “We’ve started audits on people we know previously filed income tax returns which included rental income. We’re interested in why they’ve stopped including rental income in their returns when they still own multiple properties”
2. Cash: ““With all this data collection, people may think businesses are running back to cash to avoid our scrutiny. But cash still leaves a trail, and we’ve got various ways to find businesses doing that. Cash needs to be spent or banked somewhere, and when it is it shows along the chain.”
3. GST: “We’re targeting audits at businesses that show a lot more sales in their payment service provider data than in their GST returns. We also find people that seem to be conducting a business who aren’t showing on our books at all.”
To read the full article, click on the link below:
https://www.ird.govt.nz/media-releases/2024/full-throttle-on-compliance-work