Inland Revenue targets tax non
New Zealand's Inland Revenue department is cracking down on tax evasion practices within the horticultural sector. The agency is targeting false invoicing, cash payments, and complex labor supply arrangements to ensure tax compliance.
Why it matters
Demonstrates government efforts to maintain tax system integrity and address systemic fraud in labor-intensive industries.
Inland Revenue says it has identified several horticultural sector practices that threaten the tax system's integrity. Photo / RNZ
Inland Revenue is warning it’s cracking down on dodgy practices in the horticultural sector.
The department said it had identified several prevalent practices in horticulture that threatened the integrity of the tax system, including staff being paid cash or complex arrangements being used to obscure what was happening.
It has issued a revenue alert about the non-compliance.
These are issued infrequently by the department’s commissioner when there are significant or emergency areas of concern.
Inland Revenue said it was stepping up its focus on growers, contractors and subcontractors.
It said it was aware of situations where false invoices were created to obscure the true nature of transactions, and this could lead to people and businesses paying less in GST, PAYE and other income tax than they should.
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