Domestic Revenue has exerted pressure on cash payments to the hospitality industry and is preparing to host unannounced visits to businesses.
As part of renewed efforts to resolve New Zealand's “hidden economy vergi, the tax office estimated at close to $ 1 billion includes cafes, restaurants, bars and takeaway operators, bakery and liquor shops reporting cash sales and paying staff. aims under the table.
In recent years, IRD has focused its efforts largely on the trade and construction sectors, where jobs are more widespread.
Although the IRD did not put a figure The secret economy estimates that at the end of June 2019, approximately $ 256 million in revenue was not generated.
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The tax office made a series of unannounced visits to lodging businesses in Queenstown and the Central Otago region to prevent illegal trade.
The IRD said the Central Otago region is a high-risk region of the country, where cash sales are not reported and staff receive wages for cash payments.
Using search warrants issued by the court, the tax office seized wage records, computers, and other business records. They also collected information on employer-provided accommodation, rental properties, Family Tax credit and payroll.
It turned out that a large number of businesses had paid cash to staff before they were downloaded to PAYE, and that some of them turned out to be depositing cash in private bank accounts without being returned for GST or income tax.
As a result, two businesses said they would make a voluntary statement.
The operation was carried out by 20 Domestic Revenue compliance and forensic personnel.
Richard Philp, leader of the Inland Revenue micro-customer segment, said he would continue to catch operators who did not comply with tax laws, while unannounced visits would continue in other parts of the country.
Philp, in front of the courts filed 90 cases for tax evasion, he said.
Earlier this year, the tax office successfully led the prosecution of five brothers who run 20 Thai House restaurants in Auckland. One person was sentenced to two years and eight months and three people were sentenced to house arrest.
They were also asked to pay a total of US $ 2.2 million in compensation.
Philp said that in the Internal Income survey, the proportion of people involved in cash jobs in the accommodation and construction sectors has been marginally reduced in recent years, and most people are unlikely to be involved in such jobs.
"Cash business underscores legitimate operators, so our goal is not to prosecute everyone, but to have enough examples and representations to guide people to do the right thing in our executive work," Philp said to the Herald. Said.
The IRD first began to focus on a pressure on cash payments in the hospitality industry about three years ago. Unannounced visits to workplaces are a new strategy that the tax department undertakes to withdraw the borrower's money.
Iz We can evaluate businesses based on what we perceive as to what appropriate income levels should be. We look at similar types of businesses in similar locations, which helps us identify what appears to be reporting against those close to the mark, "he said.
Auckland has been the focus of the tax department for the last few years, but is now continuing to move the regions intensely. İnşaat The construction industry and the hospitality industry are generally two sectors that represent higher levels of cash transactions, and especially with the hospitality industry, there are small amounts individually, but they can collect for large amounts of cash repression, and annual GST returns are not declared. "
Philp said the IRD earned about $ 6 for every $ 1 spent on the hidden economy.
Unreported cash payments were an ongoing issue with more operators opening shops.
A Victoria University and IRD study, published in April, estimates that the country's self-employed workers lost more than $ 800 million in annual tax expenditure because they reported 20 percent of their income.
Chartered Accountants Australia and New Zealand believe this will be over $ 1 billion per year.