Real estate sector the focus of new Inland Revenue campaign

25 May 2021

Credit: Inland Revenue

Influencers amass large audiences and make significant amounts of money and until now, it hasn’t been clear whether all of that would be captured by the taxman.

No longer #blessed: IRD clamps down on ‘influencer’ income

1 May 2021

Credit: Stuff

Influencers amass large audiences and make significant amounts of money and until now, it hasn’t been clear whether all of that would be captured by the taxman.

New Zealand Economy Contracts, Denting V-Shaped Recovery

18 March 2021

Credit: Bloomberg

New Zealand, a star performer in the battle against Covid-19, is facing the prospect of a double-dip recession as the impact of its closed border on the vital tourism industry hits home.

Inland Revenue targets cheating real estate agents

15 March 2021

Credit: Stuff

Inland Revenue has announced a crackdown on real estate agents who under-report their income or overstate their expenses in order to pay less tax than they should.

National’s Proposal To Pay Full Wages For People Self-isolating Is A Welcome One, Says The New Zealand Taxpayers’ Union.

4 March 2021

Credit: Scoop

National’s proposal to pay full wages for people self-isolating is a welcome one, says the New Zealand Taxpayers’ Union.

IRD cracks down on residential property investors not paying tax on sales profits

1 December 2020

Credit: 1 News

Inland Revenue is cracking down on residential property investors who have sold without paying tax on the profits.

‘Employees will feel this’: New top tax rate expected to have flow-on effect

1 December 2020

Credit: Stuff

A new top tax rate for high income earners will require law changes to more than just personal income tax, experts say.

The week in tax: Inland Revenue reminds tax agents about the bright-line test, responds to criticism. And the wealth tax debate continues

22 November 2020

Credit: Interest

The New Zealand Inland Revenue Department’s recent warning & alert educational email campaign regarding Bright-line property rules, highlighted that an IR833 property sale information form may need to be, or possibly should already have been, completed & lodged in some instances.

Covid 19 coronavirus: Auckland CBD shut-down could cost businesses more than $10 million

13 November 2020

Credit: NZ Herald

Today’s “stay at home” Covid-19 message for Auckland workers could cost inner-city businesses more than $10 million, the Chamber of Commerce predicts.

New tax rate would hand top 3% nearly 25% of income tax bill

5 November 2020

Credit: Stuff

New Zealand’s highest earners will pay almost 25 per cent of all income tax received by the Government under Labour’s proposed top tax rate.

Tax the wealthy? I don’t think so

15 October 2020

Credit: Stuff

National claims Labour will be forced to adopt the Greens’ wealth tax if it forms a coalition government with the party after October 17. Read more here.

The Week in Tax: tax take holding up but trouble on the way? A realistic working from home allowance, Inland Revenue takes on libertarians, and we already have a defacto wealth tax

4 October 2020

Credit: Interest

Terry Baucher presented at the Accountants and Tax Agents Institute of New Zealand’s Spring Mini Conference. Read more about the highlights of this conference.

The Week in Tax An expensive and too common GST mistake, reporting overseas income, and more on Labour’s higher income tax proposal

20 September 2020

Credit: Interest

GST is frequently touted as a simple tax, and I think that’s partly because there’s only one rate and it applies across the board on almost all goods and services consumed in New Zealand. But like any taxes, it has a number of hooks in it which frequently trip people up.

New Inland Revenue guidance on cryptoassets

7 September 2020

Credit: Scoop

Inland Revenue has updated its guidance on the tax treatment of cryptoassets in New Zealand. Spokesperson Tony Morris says Inland Revenue is doing the refresh to provide some certainty for taxpayers with cryptoassets.

New Zealand Allows Grace Period for Choosing Tax Payment Method

9 July 2020

Credit: Bloomberg Tax

New Zealand businesses have more time to decide on their method for calculating provisional tax payments.

No more wage subsidy extension: Jacinda Ardern

6 July 2020

Credit: NZ Herald

The wage subsidy scheme will end some three weeks before the election, Prime Minister Jacinda Ardern confirmed today.

Money, Jeremy Tauri: Can’t pay your tax? sort it now

27 June 2020

Credit: NZ Herald

If you’re facing a tax bill you’re worried you can’t pay, you might be feeling pretty stressed.

With the threat of penalties and interest of 8 per cent being added, it can become a bigger problem quite quickly.

The Week In Tax: Inland Revenue gives more time to file, 44,000 taxpayers enter into instalment arrangements, and watch who you choose as an exector

21 June 2020

Credit: Interest

This week, a roundup of several useful COVID-19 related variation Determinations released by Inland Revenue, a reminder to be careful about who you choose to be an executor of your will, and a temporary increase in the write off threshold for tax to pay for PAYE earners.

Thousands of businesses strike tax deal with Inland Revenue

18 June 2020

Credit: Stuff

The tax rate applied to money owing to Inland Revenue should be cut to help those struggling through Covid-19, it has been suggested.

The Week in tax: the wage subsidy extension, capital gains tax is back on the agenda, and time to top up your KiwiSaver contributions

14 June 2020

Credit: Interest

From last Tuesday, businesses and the self-employed can now apply for the Government’s Wage Subsidy Extension. Eligible businesses can get a lump sum payment for a further eight weeks of $585.40 per week per full time employee.

Inland Revenue apologises as call centres clog up again under ‘high demand’

2 June 2020

Credit: Stuff

Inland Revenue is warning businesses and individual taxpayers that they may not be able to reach it by phone because of “high demand”.

New Zealand’s big bill for ‘lockdown we didn’t need’

29 May 2020

Credit: Stuff

New Zealand’s spending on welfare support, and the extent of its quantitative easing, are significantly higher as a measure of gross domestic product (GDP), than other countries that have been more affected by Covid-19, Treasury data shows.

COVID-19 coronavirus: Government’s new small business loan scheme lends nearly $1b

27 May 2020

Credit: NZ Herald

The government’s small business loan scheme that bypasses banks in favour of the Inland Revenue Department processing applications is proving far more successful than the earlier business finance guarantee scheme.

Tax debt balloons off back of Covid-19

18 May 2020

Credit: RNZ

More than a billion dollars of tax debt has accumulated, as people seek assistance from Inland Revenue in the wake of Covid-19’s economic fallout.

The IRD gets a surprising new role

4 May 2020

Credit: Interest NZ

The Inland Revenue Department is clarifying wording on its website after Kiwis mistakenly believed the Government agency was sneakily siphoning their income tax refunds to pay off student loan debt.

Inland Revenue changes wording on website after uproar over student loans

21 April 2020

Credit: News Hub NZ

The Inland Revenue Department is clarifying wording on its website after Kiwis mistakenly believed the Government agency was sneakily siphoning their income tax refunds to pay off student loan debt.

Updated guidance from the IRD

11 April 2020

Credit: Interest.co.nz

Inland Revenue has been updating its guidance as to the measures that have been introduced by the Government to help in the short term and longer term with the response to the Covid-19 pandemic.

IR Easter Shutdown For System Changes

6 April 2020

Credit: Scoop

Inland Revenue (IR) will turn off its computer systems for seven days from this Thursday to implement the latest round of planned transformation changes.

COVID-19 And Tax Matters – Guidance For Businesses And Tax Agents

31 March 2020

Credit: Scoop

Inland Revenue will write-off any penalties and interest for businesses unable to pay taxes on time due to the impact of COVID-19.

Coronavirus: Deadline looming for tax payments some won’t be able to pay

25 March 2020

Credit: Stuff

Inland Revenue is signalling some leniency for tax bills due in the coming weeks.

GST returns and payments are due on March 28 and provisional tax payments are due for businesses with a March balance date on April 7.

Hidden gems for some businesses in Government’s economic rescue package

20 March 2020

Credit: Voxy

The impacts of the economic response package on accounting standards and annual accounts will be the last thing that businesses are thinking about at the moment. But these impacts could be significant and hugely positive according to Grant Thornton New Zealand.

Terry Baucher on how the tax changes included in the Government’s COVID-19 support package will provide immediate relief and encourage investment

18 March 2020

Credit: Interest

The Government has released details of its COVID-19 support package and I’m here to discuss the four specific tax measures which form part of that response.

Terry Baucher notes a GST policy paper that has good news for crypto investors, a retrospective change for donation tax credits, and more on IRD’s decision to stop accepting cheques

9 March 2020

Credit: Interest

Early last week Inland Revenue released a GST policy issues paper.

The paper “covers a number of issues which have been identified where the legislation produces an outcome that does not reflect the underlying policy intent.

Inland Revenue to close to public for a week for IT upgrade

6 March 2020

Credit: Stuff

Inland Revenue will close its call centres, online services and front offices for a week over Easter as it implements the fourth phase of its $1.8 billion Business Transformation project.

Terry Baucher talks to Nigel Jemson about a Trusted Taxpayer Regime as a possible alternative tax regime for small businesses

2 March 2020

Credit: Interest

The Tax Policy Charitable Trust aims to promote broader tax thinking and positive tax policy.  As part of this it runs a biannual scholarship competition open to young professionals working in New Zealand.

Inland Revenue to stop accepting cheques

26 February 2020

Credit: BizEdge

Inland Revenue is reminding customers it will no longer accept cheques come 1 March. The news comes following similar moves by the Accident Compensation Corporation, Kiwibank and New Zealand Post.

Inland Revenue outlines GST plan

25 February 2020

Credit: Good Returns

Inland Revenue wants to introduce special rules for determining the GST treatment of fund manager and investment manager services.

New scam email circulating in New Zealand claims recipients are owed IRD refund

25 February 2020

Credit: 1 News

A new scam email is circulating, falsely claiming to be from the Inland Revenue Department and claiming the recipient is owed a tax refund.

Terry Baucher needs tax cuts and capital gains back on the agenda, the IRD targeting the hospitality industry, and the OECD reckons international tax reform could collect US$10b annually

24 February 2020

Credit: Interest

Last week began with Simon Bridges, the National Party leader, outlining the party’s proposed economic platform for the coming year. And in that speech he alluded to the expectation of tax cuts before, in what was possibly a casual use of language, he said that persons on their average wage should not be paying a third of their income in tax.

New Zealand Inland Revenue proposes reforms to rules for purchase price allocation

19 February 2020

Credit: International Tax Review

The New Zealand Inland Revenue is consulting on measures to require parties to a sale of real property or business assets to adopt in their income tax returns a consistent allocation of the purchase price to individual assets.

Why low interest rates are here to stay, and what that means for savers and borrowers

18 February 2020

Credit: Stuff

A recent research paper by Paul Schmelzing of the Bank of England shows that real interest rates ie. what you need to pay above inflation to borrow money, have been pretty consistently declining for 700 years. As economic growth has given us money over time, the cost of borrowing it has gone down.

Changes to myIR filing procedures coming

17 February 2020

Credit: Indian Newslink

Inland Revenue Department (IRD) has announced a number of changes in the way in which employment information should be filed by companies.

Report calls for new tax and borrowing limits to lower house prices

17 February 2020

Credit: NZ Adviser

New Zealand’s sky-high house prices could drop if the government would introduce a capital gains tax and prevent high-income people from borrowing too much money, according to Helen Clark Foundation’s latest report.

Capital gains tax, debt-to-income limits key to making housing more affordable

14 February 2020

Credit: Newshub

A new report has proposed introducing a capital gains tax and limiting access to mortgages for high-income households as a way of combatting the country’s housing affordability problem.

IRD letter to accommodation providers says times are tough but pay your tax

14 February 2020

Credit:Stuff.co.nz

Inland Revenue wants business owners affected by events like the flooding in Southland and coronavirus impacts to know they still need to pay tax.

Terry Baucher looks at what will be the big tax issues in the coming decade: the IRD crackdown on student loans, tax defaulters, and is the capital gains tax really dead?

27 January 2020

Credit: Interest

This decade is only a few weeks old, but I consider the likely major tax themes for the years ahead are already becoming very clear.

Over the holidays, the news has been dominated by the apocalyptic visions of the Australian bushfires, and our thoughts and condolences go out to everyone affected by those fires particularly the families of those who’ve lost their lives.

Inland Revenue slaps property traders with $12.5m tax bill

23 January 2020

Credit: Stuff

Inland Revenue scrutiny of property transactions has resulted in $12.5 million in tax bills for property traders and speculators last year.

The department is tasked with identifying property dealers and speculators who should have paid tax on the gains they make from buying and selling properties.

Overseas-based loan defaulters need to square up the taxpayer

21 January 2020

Credit: Stuff

The year’s first arrest of an overseas-based student loan defaulter has certainly riled the nation, underscoring society’s contempt for people who rip off the taxpayer.

In what appears to be just the ninth such border arrest since the law was changed in 2014, a woman who had returned home to visit her ill mother was arrested at Auckland Airport, appearing before court last week.

Doggy bag-banning restaurant goes under owing student loan repayments and KiwiSaver contributions

20 January 2020

Credit: Stuff

A Paraparaumu restaurant and bar that withheld thousands of dollars in KiwiSaver and student loan debt payments must pay workers and Inland Revenue $46,756 in arrears.

The Employment Relations Authority found ​Smith & Co Hospo, which traded as The Social, deducted $9600 from wages in KiwiSaver contributions and student loan repayments but never forwarded the payments.

Former Kiwis students living overseas dodging IRD as total amount of loan debt spikes

17 January 2020

Credit: NZ Herald

More than half of all Kiwis living overseas with a student loan are dragging their feet on paying their debts.

And the amount of money the taxman considers overdue by those living overseas has jumped by almost $150 million in the space of just a year.

IRD more vulnerable to tax cheats after staff redeployed to phones, says National

15 January 2020

Credit: Stuff

Inland Revenue has let millions of dollars of tax revenue slip through its fingers by weakening its grip on the ‘hidden economy’, National Party revenue spokesman Andrew Bayly says.

The number of staff working on tax investigations has fallen by more than quarter to 143 since 2016, according to figures provided to Bayly by the department.

Proposed changes to New Zealand’s foreign investment consent rules to include tax measures

6 January 2020

Credit: International Tax Review

The New Zealand Government has announced a range of changes to the foreign investment consent rules, to be enacted as part of the second phase of its reform of the Overseas Investment Act 2005. A summary of the Government’s announcement can be found here.

The announcement follows the release in April 2019 of a consultation document by the New Zealand Treasury that noted a concern about “overseas persons acquiring sensitive New Zealand assets and not paying enough tax in New Zealand. This could be viewed as contrary to the [Overseas Investment] Act’s purpose, which recognises that it is a privilege for overseas persons to own or control such assets.”

Inland Revenue updates its multinational enterprises compliance focus

17 December 2019

Credit: International Tax Review

The New Zealand Inland Revenue has released its Multinational Enterprises Compliance Focus document, detailing its strategy and priorities for audit and enforcement in respect of large multinational enterprises. Last released in 2016, the update comes at an interesting time.

Figures recently released by the Minister of Revenue confirm a reduction, in the past 12 months, in the time that Inland Revenue has spent on audit and investigation activities. However, the reduction is likely to be temporary, reflecting a diversion of resources within Inland Revenue to assist with the implementation of its ambitious business transformation.

Council considers regulating Airbnb-style operators in Christchurch

8 December 2019

Credit: Stuff

At least 1600 properties across Christchurch are being used illegally for Airbnb-style accommodation as the city council looks for ways to regulate the industry.

The number of home-share accommodation listings in the city has ballooned in the past three years from 283 in June 2016 to 4229 in August – a 1394 per cent increase.

Small business economic performance highlights underlying stability

2 December 2019

Credit: Voxy

Xero, the global small business platform, says invoice numbers have rebounded for Kiwi small businesses, indicating underlying stability within the New Zealand small business economy.

New Zealand’s small business sector represents approximately 30 percent of New Zealand’s GDP and Xero’s assessment of the small business economy is based on Xero Small Business Insights (XSBI). This is an anonymous and aggregated data set of actual business behaviour drawn from a sample of Xero’s 367,000 Kiwi subscribers.

Tax crackdown coming for Airbnb owners as Inland Revenue uses smart technology

1 December 2019

Credit: NZ Herald

Inland Revenue says it is asking countries with tax treaties to share details about Kiwi hosts renting out their homes on Airbnb.

Take care if you’re one of the thousands of Kiwis using Airbnb or other online websites to rent out a hoe, you could be in the crosshairs of Inland Revenue.

Terry Baucher digs into 4,000 ‘please explain’ letters and counting from the IRD, the unintended consequences of a global tax rate, the future of GST, and what went wrong with the introduction of a capital gains tax

25 November 2019

Credit: Interest

This week, an update on Inland Revenue’s Common Reporting Standard initiative, the Future of Tax, and what went wrong with introducing a capital gains tax.

I spoke recently of Inland Revenue’s new initiative on the Common Reporting Standard on Automatic Exchange of Information or CRS as it’s commonly referred to. This is where Inland Revenue has received details of upwards of 700,000 accounts from overseas tax authorities.

Audit quality improves but inconsistencies persist – FMA report

18 November 2019

Credit: Voxy

Audit quality has broadly improved again but auditors continue to apply standards inconsistently, the FMA’s annual Audit Quality Report 2019 has found.

The annual review is part of a three-year monitoring cycle of licensed auditors. Each of the audit firms reviewed for this report have been reviewed previously and the FMA found most auditors had made improvements.

Income tax rejig tipped as Labour ponders how to fill hole left by CGT failure

13 November 2019

Credit: Stuff

The Government is believed to be weighing up whether to propose raising the top rate and threshold of income tax, as ministers debate the tax policy it should take to voters at next year’s election.

There has previously been speculation Labour might propose increasing the threshold at which the top rate kicks in to more than $100,000, and pay for that by increasing the top rate of tax by a few per cent.

Inland Revenue cracks down on multinationals’ tax obligations

11 November 2019

Credit: bizEdge

Inland Revenue is cracking down on multinationals to ensure they pay the correct tax in New Zealand, which could bring in approximately $200 million in tax collected every year.

New Zealand’s international tax rules received an update as part of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018, as a response to the OECD/G20 Base Erosion and Project Shifting (BEPS) project.

Terry Baucher looks at the Inland Revenue’s ramping up of investigation work, interesting technological solutions to deal with the ‘hidden economy’ and the US taxing people without representation

4 November 2019

Credit: Interest

This week, Inland Revenue comes knocking, using technology to deal with the hidden economy, and no taxation without representation? Not if you’re not living in America.

Inland Revenue announced that its staff had searched several Queenstown businesses and made unannounced visits to others, as part of a current campaign against the hidden economy targeting the hospitality sector in particular.

IRD mulls crackdown on house flippers suspected to be rorting the tax system

29 October 2019

Credit: Stuff

Inland Revenue is proposing a change to the law that would stop “habitual” house flippers from avoiding tax on their profits by changing the person who makes the purchase each time.

The move follows the decision by the Government not to pursue a Capital Gains Tax (CGT) in April, which it thought would help flatten the frothy housing market. The Government has since pursued several other policies that crack down on housing speculation.

Property sellers and buyers: bear new IRD focus in mind

21 October 2019

Credit: Otago Daily Times

If you are selling or have sold property recently, you should be aware of the IRD’s recent focus on, and review of, provisions dealing with the taxation of land.

This is evidenced by both IRD sending letters to taxpayers who they believe may have to disclose income from property sales – especially residential properties under the two or five-year BrightLine Tests based on information sourced from Linz (yes, Big Brother is watching) – as well as the proposed redrafting of some of the land tax provisions in the Income Tax Act 2007.

Accountants angry at Inland Revenue ‘confusing’ clients

21 October 2019

Credit: Stuff

Inland Revenue is being told to butt out and stop communicating directly with accountants’ clients.

Tax agents across the country are complaining that the department is acting outside its remit by sending sometimes-confusing messages straight to their clients, which leaves their accountants “picking up the pieces”.

Awful business confidence needs to be met by tax cuts

1 October 2019

Credit: Scoop

With continued awful business confidence from NZIER, the Government needs to take a new approach, says the New Zealand Taxpayers’ Union.

Taxpayers’ Union spokesman Louis Houlbrooke says, “NZIER is now suggesting annual economic growth could fall below 1 percent later this year. That would be an awful result – after accounting for population growth New Zealanders would almost certainly be going backwards.

KiwiSavers and investors on wrong tax rate to be sent reminder in the post from IRD

23 September 2019

Credit: Stuff

Inland Revenue has posted nearly 1 million letters to Kiwis telling them they are on the wrong tax rate.

In June Inland Revenue discovered 550,000 people underpaid tax on investments such as KiwiSaver in 2018 by an average amount of between $82 and $91. They are being billed for the shortfall but do not have to reimburse Inland Revenue for historical underpayments in previous years.

‘Your action required’: Managing IRD disclosure letters

16 September 2019

Credit: Otago Daily Times

Following the recent disclosure requirements in terms of Automatic Exchange of Information Agreement, we are now seeing the next wave of enforcement from Inland Revenue.

As a result of these protocols giving rise to more formal automatic exchanges of information between government entities, the Inland Revenue has started issuing letters to taxpayers regarding foreign income and tax residence status.

No option to pay Inland Revenue or ACC by cheque from March

10 September 2019

Credit: Stuff

Inland Revenue and the Accident Compensation Corporation have announced they will no longer accept payments by cheque from March.

Inland Revenue said it received more than 430,000 cheques during the last financial year, while ACC received about 25,000 cheques from businesses including the self-employed.

Terry Baucher talks tax: The IRD says; ‘Oops, our bad’. It is time for a tax advocate? More on cryptos. And another unknown unknown in tax.

9 September 2019

Credit: Interest

This morning, I and many other tax agents got a letter from Inland Revenue. It began:

“We have found some errors in the way our old system calculated late payment penalties and interest for the 2018 income year. The errors relate to a legislative change that took effect in the 2018 income year, when new rules around interest were applied under section one 20K(b)(b) of the Tax Administration Act of 1994”.

OCR cut to 1%: Is recession around the corner?

8 August 2019

Credit: Stuff

A bigger-than-expected cut to the official cash rate this week does not signal a recession immediately around the corner, but no one can afford to be complacent about “frightening” economic conditions, economists say.

The Reserve Bank surprised markets when it cut the official cash rate from 1.5 per cent to 1 per cent. Commentators had predicted it would be cut by half that much, to 1.25 per cent.

Shock and worry as it turns out the IRD can’t calculate how much those who have paid the wrong amount of tax have been penalised/compensated in interest

6 August 2019

Credit: Interest

Revelations the Inland Revenue Department (IRD) doesn’t know how much it has paid and received in interest for over and underpayments of tax have left a tax accountant speechless.

Questions were raised last month over the fact the IRD uses different benchmarks to calculate its ‘use of money’ rates applied to over and underpayments of tax.

Term deposit rates are falling and it looks like some key rates will go below 3% soon. We look at ‘real’ returns after tax, after inflation, and check how close to negative returns we are

1 August 2019

Credit: Interest

The US Federal Reserve’s rate cut on Thursday morning, New Zealand time, can be seen as a pre-cursor for next week that will see rate reviews in Australia on Tuesday, and then in New Zealand, through the Reserve Bank, on Wednesday (August 7).

Inland Revenue hits ‘significant milestone’ as refunds paid to 1.3 million people

30th July 2019

Credit: Stuff

Inland Revenue has paid $572 million into taxpayers’ bank accounts in automatic refunds over past two months.

This is the first year that Inland Revenue has returned overpaid tax without being asked for a refund, and Revenue Minister Stuart Nash said the completion of this year’s tax refund season was “a significant milestone”.

Terry Baucher looks at how Government policy conflicts with IRD procedure when it comes to the tax treatment of rental insulation. And the IRD is caught glossing and sanitising its performance reports to Cabinet.

29th July 2019

Credit: Interest

Last week, I mentioned the issue of the FBT, fringe benefit tax treatment of double cab-Utes and I referenced a blog on the issue by Andrea Black.

It seems that social media really is widely read because Inland Revenue’s ruling units, read Andrea’s post and sent her a polite email explaining that in their words, “We have a couple of comments regarding double cab utes and the work-related exemption.”

Warning for borrowers: Careful what you wish for on interest rates

26th July 2019

Credit: Stuff

Mortgage interest rates may yet fall a bit further but New Zealanders are unlikely to ever pay the 1 per cent or 2 per cent rates seen in other countries.

British home loan borrowers are still able to fix two-year rates of between 1.4 per cent and 1.9 per cent. Even 10-year rates are available at 2.5 per cent.

New Zealand GST legislation

25th July 2019

Credit: Appliance Retailer

The New Zealand Government’s recently enacted GST legislation may impact Australian businesses. The new rules, which come into force from December 1, 2019, will require overseas businesses supplying more than $60,000 of low-value goods per year into New Zealand to pass on GST directly to Inland Revenue.

Inland Revenue phishing attack just the ‘peak scam’ of the moment says Netsafe

23rd July 2019

Credit: Stuff

A phishing attack that is designed to scam people who are expecting Inland Revenue refunds appears to be the “current peak scam” but is not otherwise unusual, says Netsafe chief executive Martin Cocker.

Inland Revenue sounded the alarm on Monday after 900 scam emails that were addressed to make them appear to have come from the department were reported to it over the weekend.

Scam alert: Fake Inland Revenue tax refund email doing the rounds

16th July 2019

Credit: NZ Herald

The Inland Revenue Department is unsure how many Kiwis had been scammed off the back of a fake tax refund email requesting bank account details.

IRD client Xavier Wallach showed the Herald the “dodgy” email he had been sent in a bid to alert others not to “fall for the trap”.

Wallach said luckily he had already received his tax refund this year so knew straight away it was a scam.

Will the Government increase the personal tax rate?

15th July 2019

Credit: Stuff

Since Budget day there has been a renewed interest in tax. With capital gains tax (CGT) off the table, speculation has turned toward personal taxation and in particular whether the Government may look to increase the top tax threshold and/or the rate.

None of this speculation has come from what was contained in the Budget, but rather because of what wasn’t covered.  As Aristotle said “nature abhors a vacuum”.

SMEs racking up the hours on compliance

9th July 2019

Credit: Voxy

Kiwi business owners spend more than four hours every week meeting tax, regulation and compliance requirements, according to a new employer snapshot survey conducted by leading accounting software provider MYOB.

Larger businesses – those that employ more than 50 people – spend nearly six hours (5.8) a week meeting regulation and compliance requirements, twice that of smaller organisations (2 to 4 people) which, even though they employ only a handful of people, still spend nearly 3 hours (2.7) on compliance every week.

How New Zealand’s journey with Artificial Intelligence is informing and supporting ‘wellbeing’

8th July 2019

Credit: The Mandarin

The recent release of New Zealand’s ‘wellbeing’ budget received global attention for its focus on more than just the bottom line and economic growth.

While the previous government was focused on fiscal liability in the context of the global financial crisis and two major earthquakes, the new government under the leadership of Jacinda Ardern has shifted the focus to a much broader range of outcomes that lift wellbeing.

Why businesses have lost confidence in the New Zealand economy

4th July 2019

Credit: News Hub

It’s no surprise business confidence is falling despite the economy being in an “okay” place, according to one economist.

The latest NZIER business confidence survey found a net 31 percent of business owners expect conditions to deteriorate in the coming months, its worst result since the depths of the global financial crisis a decade ago.

IRD turns its focus to hospitality industry

9th May 2018

Credit: NZ Herald

The Inland Revenue Department has turned its attention to the hospitality industry in its latest campaign targeting undeclared income.The industry is considered a high risk group as part of the IRD’s long running hidden economy programme against tax crime.

Real risk digital IRD watchdog will cry wolf

20th April 2018

Credit: Press Reader

The Inland Revenue will turn off some online services today for employers and Thursday for the rest of us, while its new IT systems kick in as part of the tax department’s $1.9 billion transformation project.

IRD left $800m short on under-reporting from self-employed

20th April 2018

Credit: NZ Herald

New Zealand is missing out on about $800 million in its annual tax take due to the country’s self-employed under-reporting their income by about 20 percent, according to the Inland Revenue Department.

Research by Victoria University and the government’s tax authority estimates New Zealand’s self-employed, which account for 12 percent of the workforce, on average under-report their income by a fifth. The paper, by IRD’s Ana Cabral and Victoria University’s Norman Gemmell, focused on the self-employed due to the lack of third-party reporting and limiting withholding of their income, giving them greater opportunity to dodge tax than people paying income tax through PAYE.