Global Daily Tax News, NZ Revenue Outlines Tax Compliance Priorities, (Jul 15, 2024)

New Zealand's Inland Revenue has said it will ramp up audit activity and focus its compliance efforts on the hidden economy, the retail sector, and trusts-related tax compliance matters.

The agency has issued a statement setting out its enforcement priorities having been allocated extra funding in the nation's Budget.

The agency has said it will also work to reduce systemic risks in areas such as cryptocurrency, Electronic Sales Suppression Tools, organized crime, and corporate restructures.

The tax agency said: "In the first week of July, we started unannounced visits to construction sites. Debt collection and audits are also now getting underway in earnest."

"The taxation of multinationals is a focus both within New Zealand and in other tax jurisdictions. For both multinationals and corporate restructures, tax issues are complex and the amounts at risk are large. Inland Revenue is therefore increasing audits of multinationals and corporate restructures."

The agency concluded by calling on taxpayers to engage with the agency to negotiate tax instalment payment plans and to regularize their affairs.