In a renewed ‘Sleep Easy’ campaign to eliminate the hidden economy, Inland Revenue staff paid visits to restaurants, bars, cafes and takeaways in the Queenstown hospitality sector.
The sector’s high risk of unreported cash sales and employees being paid under the table resulted in IR’s recent visits to Queenstown businesses, according to Inland Revenue spokesman Richard Philp.
The IR representative also stated that they had visited over 30 businesses in Arrowtown, Queenstown and Frankton to discuss the ‘Sleep Easy’ campaign, which encourages businesses to keep clean records.
There have been both announced and unannounced visits. Using court-issued warrants, Inland Revenue staff took hold of wage records, computers, and other business records. IR also looked at information pertaining to employer-provided accommodation, rental properties, payroll, and Working for Families Tax Credits.
During the course of their work, notable irregularities and discrepancies were found. These involved instances of staff paid in cash without the deduction of Pay As You Earn (PAYE), as well as records of cash deposits into private bank accounts without being included in tax returns.
Earlier in October, five members of a Thai family that ran 21 restaurants across New Zealand were sentenced to prison and home detention after a $2.3 million tax evasion case, for which they were required to pay over $2.2 million by the High Court in Wellington.
Richard Philp stressed the importance of keeping clean records at all times. “Everyone should pay their fair share of tax, because that’s what pays for the essential things that make New Zealand a great place to live,” he said.