Cash payments to workers in horticulture sector leading cause of IRD's tax concerns
The department was giving "an opportunity for people to get their affairs in order... before we come looking," spokesperson Tony Morris said.
The Inland Revenue Department (IRD) has highlighted cash payments to workers within the horticulture sector as one of its primary concerns regarding tax practices. Recently, the tax department issued a revenue alert cautioning the industry about the risks posed by cash payments, complex contracting arrangements, and non-compliance with schedular payment rules. These practices could potentially lead to the loss of tens of millions of dollars in tax revenue, according to Tony Morris, a spokesperson for the IRD.
Cash payments in the horticulture sector, particularly in the kiwifruit industry of the Bay of Plenty region, present opportunities for tax evasion and money laundering. Morris stated that the department has increased its monitoring of unusual overseas payments that should have been subject to more tax. He emphasized that the focus has been on the kiwifruit sector, but subcontractors paying in cash are now being detected in the construction sector as well.
The Horticulture New Zealand chief executive, Kate Scott, expressed support for the IRD's actions, stating that the industry body welcomes measures that promote compliance and safeguard workers. Most growers in the kiwifruit sector actively work to comply with tax regulations and operate responsibly within a complex regulatory environment.
However, Scott cautioned that any instances of non-compliance undermine both compliant businesses and the overall confidence in the horticulture sector. She urged members to review their arrangements, maintain detailed records, and seek professional advice to ensure adherence to tax laws.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
