The Kiwifruit Industry is an IRD Target
IRD identifies the horticulture as being high risk for lack of compliance, poor accuracy of IRD return disclosure and poor record keeping practices. This year is particularly bad within the kiwifruit industry so the IRD are being more visible, being hands on educating tax payers, and working with industry groups and government agencies. So don’t be surprised if you get a visit from the IRD at some stage and if you do and are not sure then give us a call urgently.
The IRD recognises that within the Kiwifruit industry there are still continued issues with tax compliance including returns not being filed, significant and multiple tax debt, poor accuracy of PAYE, GST and Income Tax returns disclosures, complaints from PAYE workers in regards to errors in earnings information disclosed, cash transactions incorrectly reported or not reported at all, poor record keeping practices and continued misuse of IRD numbers.
The pressure comes on when there is a shortage of labour within the region, IRD suspects there is more “cash under the table” arrangements when labour supply is in demand. When workers are not eligible to work in NZ, IRD suspects that wage systems and record keeping is manipulated to “get around the system”. The IRD is wiser since the introduction of the myIR online access for individuals, they can now view their earnings and tax information anywhere anytime. If it doesn’t stack up the first place they phone to ask why, is the IRD!
So what are the IRD doing to rectify the issue? They have dedicated Community Compliance Officers employed to be more visible, particularly the Kiwifruit industry in Te Puke, Katikati, Whakatane and Opotiki, they may visit on site to ask questions and ensure employers are educated and complying with the law. The IRD are also working with industry organisations and in collaboration with other government agencies such as the labour department and social welfare to encourage better compliance.