News and Media

Cashies come under IRD spotlight again

8th December 2015

As part of its stand against non-declared cash jobs, Inland Revenue will be questioning the construction sector on record keeping and tax compliance.

A campaign targeting sub-contractors in Auckland has proven to be a success with surveys showing two-thirds of tradies noticed the campaign and roughly half believe it is relevant to all tradespeople.

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Jeremy Tauri: Crackdown on cashies

14th December 2015

Ever been asked if you could do a better deal for a client if it was "under the table", or heard someone ask in a shop: What's the price for cash? While New Zealand is quickly moving to a cashless society, with the news this week that ANZ is letting people shop using their phones, parts of the economy still have a strong cash culture. And generally it's designed so that someone pays less, the business avoids tax and the whole deal is done under the radar of the Inland Revenue.

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IRD eyes hybrid instruments, related party debt in global tax avoidance clamp-down

2nd December 2015

Inland Revenue is looking at the tax treatment of hybrid debt and equity instruments and the use of related party loans funding local subsidiaries as part of a global clamp-down on tax avoidance.

Acting deputy commissioner of policy and strategy David Carrigan told Parliament's finance and expenditure select committee that New Zealand's thin capitalisation and transfer pricing rules for foreign companies are "robust" but it is looking into two areas where it can tighten up for potential avoidance. 

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Frucor digs in over tax dispute with IRD

25th November 2015

Frucor Beverages, the Suntory Holdings-owned drinks maker whose brands include V, Just Juice and Fresh-up, is still embroiled in a dispute with the Inland Revenue Department over its use of convertible notes more than a decade ago, leaving it as an outlier with other firms cutting their losses and settling.

The Auckland-based company still contends the tax department's position is incorrect, and is waiting on the outcome in a similar dispute, which has led to a stay on proceedings in its own case.

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