I regularly receive e-mails from IRD outlining which areas of tax crime they are currently focusing on. Here is a passage from a recent e-mail I received from IRD:
We’re looking hard at tax crime in the construction industry.
We’ll be contacting tradies to encourage them to declare all of their income through their GST and income tax returns. While most people in the construction industry are doing the right thing, we’re reminding your clients that undeclared cash jobs can have negative consequences. They can result in tax penalties, a criminal conviction that could affect their ability to contract for work, and even prison time.
This is a serious warning to tradies in the construction industry that any cash jobs they are doing may be found out by IRD and punished. If this wasn’t enough of a warning, I received another e-mail from IRD one week later:
We’re emailing you again to let you know we’re looking hard at tax crime in the construction industry.
IRD mean business with this so if you have any friends or family members who are tradies and you know they are not declaring all their income, please make them aware that the IRD are targeting them. If they need help completing their tax returns, feel free to pass on my details to them and I can help them file all the relevant returns.