{"id":5316,"date":"2024-04-30T10:05:04","date_gmt":"2024-04-29T22:05:04","guid":{"rendered":"https:\/\/marketingwebsite.afirmo.com\/nz\/?p=5316"},"modified":"2024-12-01T18:35:53","modified_gmt":"2024-12-01T05:35:53","slug":"inland-revenue-tells-construction-sector-zero-tolerance-to-tax-evasion","status":"publish","type":"post","link":"https:\/\/www.afirmo.com\/nz\/resources\/inland-revenue-tells-construction-sector-zero-tolerance-to-tax-evasion\/","title":{"rendered":"Inland Revenue tells construction sector zero tolerance to tax evasion"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1300px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-blend:overlay;--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1\" style=\"--awb-font-size:24px;--awb-text-transform:none;\"><p><b>At a Glance<\/b><\/p>\n<\/div><div class=\"fusion-text fusion-text-2\" style=\"--awb-font-size:16px;--awb-text-transform:none;\"><ul>\n<li><span style=\"font-size: 20px;\" data-fusion-font=\"true\"><a style=\"font-size: 16px;\" href=\"#p1\" data-fusion-font=\"true\">Tax evasion in the construction sector<\/a><\/span><\/li>\n<li><span style=\"font-size: 20px;\"><a style=\"font-size: 16px;\" href=\"#p2\" data-fusion-font=\"true\">What you need to know<\/a><\/span><\/li>\n<li><span style=\"font-size: 20px;\" data-fusion-font=\"true\"><a style=\"font-size: 16px;\" href=\"#p3\" data-fusion-font=\"true\">How to get sorted &#8211; fast<\/a><\/span><\/li>\n<\/ul>\n<p style=\"font-size: 16px;\" data-fusion-font=\"true\">Inland Revenue confirms they will be applying pressure on construction sector businesses to get tax compliant and meet tax obligations, with Inland Revenue\u2019s audit team on high alert.<\/p>\n<\/div><div class=\"fusion-title title fusion-title-1 fusion-sep-none fusion-title-text fusion-title-size-one\" style=\"--awb-margin-top:0px;--awb-margin-top-small:0px;\"><h1 class=\"fusion-title-heading title-heading-left fusion-responsive-typography-calculated\" style=\"margin:0;--fontSize:48;line-height:1.25;\"><h4><b data-fusion-font=\"true\">Tax Evasion in the Construction Sector<\/b><\/h4><\/h1><\/div><div class=\"fusion-menu-anchor\" id=\"p1\"><\/div><div class=\"fusion-text fusion-text-3\" style=\"--awb-text-transform:none;\"><p>According to Inland Revenue, tax evasion is particularly prevalent in the construction sector, with significant under-declaration of income, often through cash transactions.<\/p>\n<p>With rising material and labour costs, many tradespeople are turning to cash jobs to make it through the recession.<\/p>\n<p>To weather the economic storm, businesses must address cash flow challenges, exploring alternative marketing tactics to get work, and prioritise tax preparedness as crucial strategies for survival.<\/p>\n<p>Inland Revenue\u2019s Richard Philp says tax compliance is key, confirming those who fulfil their obligations will receive support, while those who don\u2019t will face consequences. He says 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.<\/p>\n<p><span class=\"ui-provider ee bja bfe cgt cgu cgv cgw cgx cgy cgz cha chb chc chd che chf chg chh chi chj chk chl chm chn cho chp chq chr chs cht chu chv chw chx chy\" dir=\"ltr\">This highlights the importance of construction sector businesses managing tax effectively to avoid Inland Revenue repercussions.<\/span><\/p>\n<p>The construction industry has a long history of cash-handling, and prior to the current economic state. While there has been Inland Revenue leniency in the past, things are about to change.<\/p>\n<\/div><div class=\"fusion-title title fusion-title-2 fusion-sep-none fusion-title-text fusion-title-size-one\" style=\"--awb-margin-top:0px;--awb-margin-top-small:0px;\"><h1 class=\"fusion-title-heading title-heading-left fusion-responsive-typography-calculated\" style=\"margin:0;--fontSize:48;line-height:1.25;\"><h4>What you need to know<\/h4><\/h1><\/div><div class=\"fusion-menu-anchor\" id=\"p2\"><\/div><div class=\"fusion-text fusion-text-4\" style=\"--awb-text-transform:none;\"><p>While non-tax compliance is not a good situation to be in, it is resolvable. Tax Agencies of Inland Revenue \u2013 such as Afirmo &#8211; are available to support construction industry business owners get their books in order.<\/p>\n<p>In the coming months, Inland Revenue will contact 40,000 construction sector businesses with outstanding debts or overdue Income Tax returns. Initially Inland Revenue will be offering support to resolve the issues these 40,000 businesses have. Compliance officers will also conduct site visits and investigations as necessary.<\/p>\n<p>Philip says construction industry businesses should not underestimate the importance of seeking assistance and not ignoring tax obligations to avoid severe consequences, including legal action.<\/p>\n<\/div><div class=\"fusion-title title fusion-title-3 fusion-sep-none fusion-title-text fusion-title-size-one\" style=\"--awb-margin-top:0px;--awb-margin-top-small:0px;\"><h1 class=\"fusion-title-heading title-heading-left fusion-responsive-typography-calculated\" style=\"margin:0;--fontSize:48;line-height:1.25;\"><h4><b data-fusion-font=\"true\">How to get sorted &#8211; fast<\/b><\/h4><\/h1><\/div><div class=\"fusion-menu-anchor\" id=\"p3\"><\/div><div class=\"fusion-text fusion-text-5\" style=\"--awb-text-transform:none;\"><p><span data-contrast=\"none\">To fast track getting taxes sorted before business owners are approached by Inland Revenue, these construction sector business owners can contact tax agency companies such as Afirmo. \u201cAfirmo is an agent to Inland Revenue and supports business owners with compliance and getting in the good books with Inland Revenue\u201d, says Afirmo CEO, Robert Rolls.<\/span><\/p>\n<p><span data-contrast=\"none\">Rolls says, \u201cDon\u2019t get caught out by Inland Revenue. Stay ahead of your tax obligations with Afirmo\u2019s 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 hassle-free for you and get you tax compliant. And affordably for you so that you can get that just-filed feeling \u2013 relief!\u201d.<\/span><\/p>\n<p><span data-contrast=\"none\"> <\/span><\/p>\n<p><b><span data-contrast=\"none\">How Afirmo will help<\/span><\/b><\/p>\n<p><span data-contrast=\"none\">Afirmo is an online tax and accounting management software designed especially for New Zealand <a href=\"\/nz\/scale-up-accounting-for-small-business\/\">small businesses<\/a> and <a href=\"\/nz\/accounting-for-tradies\/\">Tradies<\/a>. The software enables business owners to send invoices, track and code expenses, and monitor cashflow, and allocate funds for upcoming tax obligations.<\/span><\/p>\n<\/div><div class=\"fusion-image-element \" style=\"--awb-caption-title-font-family:var(--h2_typography-font-family);--awb-caption-title-font-weight:var(--h2_typography-font-weight);--awb-caption-title-font-style:var(--h2_typography-font-style);--awb-caption-title-size:var(--h2_typography-font-size);--awb-caption-title-transform:var(--h2_typography-text-transform);--awb-caption-title-line-height:var(--h2_typography-line-height);--awb-caption-title-letter-spacing:var(--h2_typography-letter-spacing);\"><span class=\" fusion-imageframe imageframe-none imageframe-1 hover-type-none\"><a class=\"fusion-no-lightbox\" href=\"\/nz\/\" target=\"_self\" aria-label=\"scale-up_dashboard\"><img fetchpriority=\"high\" fetchpriority=\"high\" decoding=\"async\" width=\"2001\" height=\"1351\" src=\"https:\/\/marketingwebsite.afirmo.com\/nz\/wp-content\/uploads\/2024\/05\/scale-up_dashboard.png\" alt class=\"img-responsive wp-image-6799\" srcset=\"https:\/\/www.afirmo.com\/nz\/wp-content\/smush-webp\/2024\/05\/scale-up_dashboard-200x135.png.webp 200w, https:\/\/www.afirmo.com\/nz\/wp-content\/smush-webp\/2024\/05\/scale-up_dashboard-400x270.png.webp 400w, https:\/\/www.afirmo.com\/nz\/wp-content\/smush-webp\/2024\/05\/scale-up_dashboard-600x405.png.webp 600w, https:\/\/www.afirmo.com\/nz\/wp-content\/smush-webp\/2024\/05\/scale-up_dashboard-800x540.png.webp 800w, https:\/\/www.afirmo.com\/nz\/wp-content\/smush-webp\/2024\/05\/scale-up_dashboard-1200x810.png.webp 1200w, https:\/\/www.afirmo.com\/nz\/wp-content\/uploads\/2024\/05\/scale-up_dashboard.png 2001w\" sizes=\"(max-width: 821px) 100vw, 2001px\" \/><\/a><\/span><\/div><div class=\"fusion-text fusion-text-6\" style=\"--awb-text-transform:none;\"><p><b><span data-contrast=\"none\"><br \/><\/span><\/b><\/p>\n<p><b><span data-contrast=\"none\">Real-time tax calculations<\/span><\/b><\/p>\n<p><span data-contrast=\"none\">Afirmo\u2019s calculations and dashboards allow business owners to set aside the right amount for GST, Income Tax and Provisional Tax thought out the financial year, ensuring there are no surprises when tax season rolls around. <\/span><\/p>\n<p><span data-contrast=\"none\">The money stays in the business owner\u2019s accounts, meaning they have access to it during cashflow lulls.<\/span><\/p>\n<p><span data-contrast=\"none\"> <\/span><\/p>\n<p><b><span data-contrast=\"none\">Accountants are included<\/span><\/b><\/p>\n<p><span data-contrast=\"none\">Afirmo\u2019s tax accountant specialists provide advice and submit GST and Income Tax returns for customers on selected Afirmo plans, at an affordable price. These specialists will support non-compliant businesses get on top of compliance and confidentially and affordably.<\/span><\/p>\n<p><span data-contrast=\"none\">Afirmo\u2019s automated reminders ensure business owners know when they need to have the system updated. <\/span><\/p>\n<p><span data-contrast=\"none\">Business owners who join Afirmo\u2019s Tax Agency also enjoy the benefit of extended deadlines for Income Tax returns. <\/span><\/p>\n<\/div>\n<div class=\"table-1\">\n<table width=\"100%\">\n<thead>\n<tr>\n<th align=\"left\">Cash Job vs Tax Compliant Job<\/th>\n<th align=\"left\"><span class=\"TextRun SCXW43921274 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW43921274 BCX9\">Cash Job<\/span><\/span><\/th>\n<th align=\"left\"><span class=\"NormalTextRun SCXW43921274 BCX9\">Tax <\/span><span class=\"NormalTextRun SCXW43921274 BCX9\">C<\/span><span class=\"NormalTextRun SCXW43921274 BCX9\">ompliant<\/span><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td align=\"left\">Illegal<\/td>\n<td align=\"left\">\u2705<\/td>\n<td align=\"left\">\u274c<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><span class=\"TextRun SCXW206668971 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW206668971 BCX9\">Warranty on work<\/span><\/span><\/td>\n<td align=\"left\">\u274c<\/td>\n<td align=\"left\">\u2705<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><span class=\"TextRun SCXW258074441 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW258074441 BCX9\">Insurance<\/span><\/span><\/td>\n<td align=\"left\">\u274c<\/td>\n<td align=\"left\">\u2705<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><span class=\"TextRun SCXW165450060 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW165450060 BCX9\">Income protection<\/span><\/span><\/td>\n<td align=\"left\">\u274c<\/td>\n<td align=\"left\">\u2705<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><span class=\"TextRun SCXW164043976 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW164043976 BCX9\">Extra cash in your pocket<\/span><\/span><\/td>\n<td align=\"left\">\u2705 (In the short term)<\/td>\n<td align=\"left\">\u274c<\/td>\n<\/tr>\n<tr>\n<td align=\"left\"><span class=\"TextRun SCXW172298945 BCX9\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW172298945 BCX9\">Inland revenue penalty<\/span><\/span><\/td>\n<td align=\"left\">\u2705<\/td>\n<td align=\"left\">\u274c<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div class=\"fusion-text fusion-text-7\" style=\"--awb-text-transform:none;\"><p><span class=\"TextRun SCXW16925975 BCX9\" lang=\"EN-NZ\" xml:lang=\"EN-NZ\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16925975 BCX9\"> <\/span><\/span><\/p>\n<p><span class=\"TextRun SCXW16925975 BCX9\" lang=\"EN-NZ\" xml:lang=\"EN-NZ\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16925975 BCX9\">If <\/span><span class=\"NormalTextRun SCXW16925975 BCX9\">you\u2019re<\/span><span class=\"NormalTextRun SCXW16925975 BCX9\"> concerned about a potential audit from <\/span><span class=\"NormalTextRun SCXW16925975 BCX9\">Inland Revenue<\/span><span class=\"NormalTextRun SCXW16925975 BCX9\">, <\/span><a href=\"https:\/\/app.afirmo.com\/register\"><span class=\"NormalTextRun SCXW16925975 BCX9\">sign<\/span><span class=\"NormalTextRun SCXW16925975 BCX9\"> up<\/span><\/a><span class=\"NormalTextRun SCXW16925975 BCX9\"> <\/span><span class=\"NormalTextRun SCXW16925975 BCX9\">today <\/span><span class=\"NormalTextRun SCXW16925975 BCX9\">with <\/span><span class=\"NormalTextRun SCXW16925975 BCX9\">Afirmo<\/span><span class=\"NormalTextRun SCXW16925975 BCX9\"> and s<\/span><span class=\"NormalTextRun SCXW16925975 BCX9\">tart your <\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW16925975 BCX9\">30 day<\/span><span class=\"NormalTextRun SCXW16925975 BCX9\"> trial and get your books in order.<\/span><\/span><\/p>\n<\/div><div class=\"fusion-builder-row fusion-builder-row-inner fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"width:104% !important;max-width:104% !important;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column_inner fusion-builder-nested-column-0 fusion_builder_column_inner_1_1 1_1 fusion-flex-column new-btn-outer btn-full-width-mob\" 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\/><\/a><\/span><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":12,"featured_media":5301,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-5316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-and-tax"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Inland Revenue tells construction sector zero tolerance to tax evasion | Afirmo NZ<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/marketingwebsite.afirmo.com\/nz\/resources\/inland-revenue-tells-construction-sector-zero-tolerance-to-tax-evasion\/\" \/>\n<meta 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