In a stern warning in April 2024, Inland Revenue has confirmed a hard crack down is coming this year on businesses in the construction sector to and a recommendation to sort their tax situations.
Inland Revenue confirms they will be applying pressure on the construction sector to get tax compliant and meet tax obligations, with their audit team on high alert.
According to Inland Revenue, tax evasion is particularly prevalent in the construction sector, with significant under-declaration of income, often through cash transactions.
Richard Philp from Inland Revenue says compliance is key, assuring that those who fulfil their obligations will receive support, while those who don’t will face consequences. He says that if people do the right thing coming forward, Inland Revenue will help them. If people do not come forward, Inland Revenue will start follow-up action.
This highlights the importance of construction sector businesses managing their taxes efficiently and staying compliant to avoid any potential issues down the line.
To fast track this process, construction section business owners can contact tax agency companies such as Afirmo. Afirmo is an agent to Inland Revenue and supports business owners with compliance and getting in the good books with Inland Revenue, says Afirmo CEO, Robert Rolls.
Rolls says, “Don’t get caught out by Inland Revenue. Stay ahead of your tax obligations with Afirmo’s assistance and avoid Inland Revenue auditors getting in touch. Our tax accountants will help you manage your compliance, and the Afirmo software is tailored to make tax management straightforward and hassle-free for you and get you tax compliant. And affordably for you”.
In the coming months, Inland Revenue plans to contact 40,000 construction customers with outstanding debts or overdue tax returns, offering support to resolve their issues. Compliance officers will also conduct site visits and investigations as necessary.
Inland Revenue acknowledges the challenges faced by construction businesses, such as rising material costs and labour shortages, but insists that tax evasion is not acceptable.
They receive thousands of anonymous reports annually about cash transactions, with construction being the most frequently reported industry.
During the pandemic, Inland Revenue adopted a lenient approach, but now, is taking a tougher stance now. Philip says the importance of seeking assistance and not ignoring tax obligations to avoid severe consequences, including legal action.
