The IRD have confirmed that their current compliance focus for small and medium-sized entities includes the following:
- Checking GST is repaid when business assets are used for private purposes.
- Monitoring land transactions to make sure that GST is properly accounted for.
- Assessing GST refund entitlements.
- Checking employee tax codes are correct (IR330’s are available to determine the correct code to use).
- Ensuring independent contractors are self-employed contractors and not employees.
- Ensuring independent contractors are filing income tax returns and, where required, GST returns. The IRD is identifying the industries and professions where independent contractors are likely to be employed and reviewing compliance levels.
Please contact us if you have any concerns or questions regarding your IRD compliance.