Did you know $29 million was the sum allocated to IRD via the Budget? This money is intended for IRD to spend on compliance activities. Particularly it will be utilized to employ 200 additional permanent staff who will focus their efforts on undertaking compliance activity work.
Specifically, IRD intends to prioritize the collection of taxes, especially GST, Income Tax and Student Loans.
Forecasts are for every $1.00 put into collections, $8.00 of tax will be collected. Whether that prediction holds true or not, one thing is certain … the extra funding, coupled with the new computer capabilities IRD have will make it much easier to identify those who aren’t satisfying their tax obligations.
Specifically, IRD will focus their efforts on:
- Goods and Services Tax
- Fringe Benefit Tax
- Provisional Tax
- Trustee Tax
- Declared Dividends
- Imputation Credit Accounts
- Private and Claimable Expenditure
- Student Loan Repayments
IRD’s eyes are wide open. The tools at its disposal makes increased scrutiny easy. Avoiding issues is easy too. Ensure you are current in satisfying your tax obligations. We can’t say we haven’t been warned.