Inland Revenue Compliance Update
At Whutuporo Accountants, we’re always staying on top of the latest developments that could impact our clients. Recently, we attended an IRD Compliance Update, and it’s clear the Inland Revenue Department (IRD) is stepping up its game for the 2024/25 period. With a sharper focus on enforcement and collection, here’s what you need to know to stay ahead and stay compliant.
The IRD’s Approach: Fair but Firm
The IRD is committed to three key principles:
With these in mind, the coming year will see a significant ramp-up in enforcement activity, particularly after a quieter period of compliance action in recent years.
Enforcement Is Ramping Up
Between July and September 2024 alone, the IRD:
This signals a clear intent to increase scrutiny across a range of areas, ensuring compliance and addressing outstanding obligations.
Key Targets for 2024/25
The IRD has identified several focus areas for enforcement and audits:
Increased Collection Efforts
The IRD will also step up collection efforts, particularly targeting:
Proactive Communication Is Key
If you’re feeling the pressure of meeting return deadlines, making payments, or handling other obligations, don’t panic. Communication is crucial. Reaching out to the IRD proactively can go a long way in minimizing penalties and avoiding liquidations.
At Whutuporo Accountants, we’re here to help. If you’re facing challenges, let us open a dialogue with the IRD on your behalf. Together, we’ll work towards a solution that keeps your business on track and compliant.
Stay Compliant and Stay Informed
With enforcement activity increasing, it’s more important than ever to stay ahead of your obligations. If you have any questions about these updates or need assistance navigating compliance requirements, don’t hesitate to reach out to our team.
Let’s make 2024/25 a year of confidence, compliance, and growth!
The IRD’s Approach: Fair but Firm
The IRD is committed to three key principles:
- Make it easy to get it right.
- Make it hard to get it wrong.
- Make it costly for those avoiding their obligations.
With these in mind, the coming year will see a significant ramp-up in enforcement activity, particularly after a quieter period of compliance action in recent years.
Enforcement Is Ramping Up
Between July and September 2024 alone, the IRD:
- Opened 1,908 audits
- Closed 1,623 audits
This signals a clear intent to increase scrutiny across a range of areas, ensuring compliance and addressing outstanding obligations.
Key Targets for 2024/25
The IRD has identified several focus areas for enforcement and audits:
- Hidden Economy – Unreported income and under-the-table transactions.
- Property Speculators and Developers – Ensuring proper declaration of profits.
- Multinational Companies – Addressing transfer pricing and tax avoidance.
- Audit Areas of Focus:
- High-risk sectors.
- Cryptocurrency transactions.
- Organised crime links to financial activities.
- Offshore income.
- Trusts and diverted personal income.
Increased Collection Efforts
The IRD will also step up collection efforts, particularly targeting:
- High-value outstanding returns
- High-risk debt
- Small business cashflow loans
- Student loans
Proactive Communication Is Key
If you’re feeling the pressure of meeting return deadlines, making payments, or handling other obligations, don’t panic. Communication is crucial. Reaching out to the IRD proactively can go a long way in minimizing penalties and avoiding liquidations.
At Whutuporo Accountants, we’re here to help. If you’re facing challenges, let us open a dialogue with the IRD on your behalf. Together, we’ll work towards a solution that keeps your business on track and compliant.
Stay Compliant and Stay Informed
With enforcement activity increasing, it’s more important than ever to stay ahead of your obligations. If you have any questions about these updates or need assistance navigating compliance requirements, don’t hesitate to reach out to our team.
Let’s make 2024/25 a year of confidence, compliance, and growth!
Other Bulletin Articles
