During 2020 and 2021 IRD took a lighter approach to those not paying their taxes but have recently started cracking down on non-payers, with a priority on businesses that have failed to pay their employee deductions and GST.
GST, PAYE and KiwiSaver payments will be the first priority
Outstanding PAYE and employee KiwiSaver payments to IRD have doubled over the past five years, and outstanding GST payments have tripled.
We are seeing heightened interest from IRD in these areas with indications that they are kicking off investigations. If you become the subject of an IRD audit, this can prove costly and many of our clients are opting to take up Audit Insurance to help minimise this cost.
Other areas of focus for the Inland Revenue
Over the past year, Inland Revenue has also been taking a tougher approach to some other specific types of tax concerns:
• high earners who think they might be able to avoid paying the new 39% top tax rate using companies and trusts
• ute owners who avoid paying fringe benefit taxes
• real estate agents overstating their expenses or under-reporting their income
• GST on land purchases by developers
• phoenix companies that are shut down and restarted to avoid tax debts
If you owe tax, or are unsure if you might, please get in touch so we can work with Inland Revenue and find solutions to help you – the sooner we start the better, and the more effectively we can minimise any penalties. The people at Inland Revenue can be very understanding and helpful, but they don’t have the opportunity to help if you’re not addressing it.
Don’t let your tax debt get out of hand – we’re here to support you and work on your behalf with Inland Revenue to help your tax get paid and your business and investments succeed.
Pathfinder Solutions work hard to make sure our clients understand their tax obligations, but if you do have any questions, please let us know. The people at Inland Revenue can be very understanding and helpful, but they don’t have the opportunity to help if you simply bury your head in the sand and hope the problem will go away.
Don’t let your tax debt get out of hand – Pathfinder Solutions are here to support you and work on your behalf with Inland Revenue to help your tax get paid and your business succeed.
About Pathfinder Solutions
Pathfinder Solutions advisory team members have either owned or managed businesses, or are investors themselves, so we know first-hand the challenges you face in your world.
Sure we’re Accountants, but the best solutions in business come from focusing on more than just the numbers. Our real-world business and investment experience delivers just that.
