Subj : 'Last chance' warning for tradies over cash jobs
To   : All
From : News Person
Date : Tue Apr 09 2024 10:01 am

Inland Revenue Department (IRD) have issued a "last chance warning" to the
construction sector, saying the tax department will "find them and start
follow up action" if business and sole traders keep working untaxed cash jobs.

In a statement released this morning, IRD's Richard Philp urged those in the
field to "to do the right thing and get on top of their tax obligations".

"If people do the right thing, Inland Revenue will help them. If they don't,
Inland Revenue will find them and start follow-up action," Philp said.

"We're not blind to the fact that businesses in the construction sector have
struggled with increases in the cost and availability of materials, and
labour shortages over the last few years.

"But we also know that while some are struggling just to keep up with the
everyday grind, others are actively avoiding their tax obligations."

The department said that tax debt is "high" in the construction sector, and
that "data shows that under-declaring income, often via cash jobs, is
commonplace".

IRD said that yearly, it receives nearly 7000 anonymous tip offs about cash
jobs across all sectors - but construction is the "most often anonymously
reported" industry.

IRD said it took a "softly, softly" approach to tax evasion "during the
pandemic years", but is now committed to changing that. It said it ran a
campaign last year to "help construction businesses do the right thing" and
it is now taking a firmer approach.

"The message is cut the excuses, ask us for help if you need it, and don't
stick your head in the sand or you could find yourself talking to someone
from our audit team, or worse still, staring down a prison sentence as
several people in other sectors have this year," Philp said.

IRD said within the next few months, it will send emails and letters to
around 40,000 construction customers with "outstanding debt, overdue tax
returns, or both".

It will then text around 2500 of those customers asking if they "would like
support to get their outstanding tax sorted".

Those who respond "yes" would be contacted by a team of compliance officers.

Philp said: "Our compliance officers will also be doing site visits in high
construction areas in key locations across New Zealand. Our audit team will
also be looking to select a number of customers to follow up and investigate.

"Do the right thing and get your outstanding debt and returns sorted now."

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