Mhk Chartered Accountants Comment On Latest Ird Tax Focus

As the IRD continue to look to collect more tax revenue, Ian Malcolm, Managing Director of MHK Chartered Accountants, applauds the IRD’s latest focus, that of targeting the ‘hidden cash economy’ transactions in the trade industry, in particular subcontractors such as builders, plumbers and electricians.  This time the IRD are focussing in parts of Auckland - specifically Flatbush, Takanini, Silverdale and Albany. This is another bid to recoup unpaid income tax from the country's multimillion dollar 'hidden economy'. Inland Revenue marketing and communications group manager Andrew Stott said this is “specifically focussed on residential development in those four suburbs, but that could well become wider if it is an effective campaign."

Auckland was chosen as a location to pilot the campaign given the size of its population and the construction work currently being carried out, he said. "IRD say they've been working with the trade industry - Master Builders, Master Plumbers - and they're concerned, because they encourage their members to pay tax on all of their income and they don't want to be undercut by people who don't want to do that”.

MHK Chartered Accountants agree with this focus, with Ian Malcolm commenting that “the cash economy causes employees and honest taxpayers to unfairly pay more than their fair share of taxes, which are used for the benefit of all New Zealanders, and about 70 per cent of New Zealanders think that tradies should be declaring all of their income and paying tax on that”.

IRD had begun a two-month trial marketing campaign using bus stops, ad-fences, radio, mobile phone ads, mobile billboards, trade magazines and digital advertising, Stott said. Last year the IRD looked at construction, as well as hospitality, and the IRD state that for every dollar spent in this area they collect about $6 previously undeclared in return.

MHK Chartered Accountants specialise in legally minimising all types of taxation obligations and offer a no-obligation exploratory discussion free of charge.  For more information on MHK Chartered Accountants please go to http://aucklandaccountant.net.nz .