Are you declaring all income? How safe are your aggressive tax avoidance schemes?
Times are tough and the New Zealand government has empowered the IRD to aggressively pursue unpaid taxes. This includes not just debt due to the Inland Revenue Department, it includes undeclared income earned in the black market, and schemes devised to shift income between related parties (such schemes are common tax planning tools for doctors, architects and other professionals). The IRD has the monetary resources to pursue taxes it believes are its due. It also has increasing information sharing tools, both within New Zealand, and overseas; so, if for example, you have been quietly earning interest on a bank deposit in another country thinking it has nothing to do with the New Zealand IRD think again. It needs to be declared and, in most cases, NZ tax will apply. If you have a cute little tax avoidance scheme, ask yourself: is it going to stand up if the IRD challenges it and do the set up costs and the costs of dealing with an IRD challenge outweigh the tax savings?
It’s time to ensure that your tax affairs are squeaky clean. Please contact us if we can help.