If you are in the construction sector, be aware - Inland Revenue is telling businesses and sole traders in this industry to do the right thing and get on top of their tax obligations, or there will be consequences.
The Commissioner has said if people do the right thing, they will help them. If they don’t, IRD will find them and start follow-up action.
It’s no secret businesses in the construction sector have struggled to cope with increases in the cost and availability of materials, and labour shortages over the last few years. But IRD also knows that while some are struggling just to keep up with the everyday grind, others are actively avoiding their tax obligations.
During COVID-19 IRD took a soft approach to helping the industry but now it’s full steam ahead and the Revenue will not be holding back. Tax debt is high in the construction sector and IRD have said “Cut the excuses, ask for help if you need it otherwise someone from our audit team will turn up unannounced.”
Soon IRD will send out emails and letters to around 40,000 construction customers with outstanding debt. If this is you or you feel you may owe tax please contact us. We would prefer to be ahead of IRD so we can take the appropriate action.
Also, note IRD’s have said their compliance officers will be doing site visits in high-construction areas in key locations across New Zealand. Their audit team will be looking too at select customers to follow up and investigate.
Ultimately this is a direct missive from IRD to do the right thing and get your outstanding debts and returns sorted. If you need help, reach out to us. That’s what we are here for.
In our work we have the privilege of meeting some really interesting clients. Recently, we provided advice and accounting services to Warren and Jennifer Kavanagh and their brainchild, Cedar Works. In the process of our engagement, Warren gave us some of Cedar Works products to try and we were so impressed, we thought we’d share […]