Common sense may be breaking out

You may recall the challenge.

The IRD propose to use 20/20 vision of hindsight to challenge the tax return of migrants going back years!!!

The IRD did not appreciate the full impact of the law years ago, but now that the IRD does, they are going to challenge the tax return of new migrants going back many years.

To appreciate the scale of the IRD target they sight the example of $1.1 billon being transferred to NZ over 4 - 5 years. The IRD checked the NZ tax return of those migrant individuals and in their view 7 out of 10 tax returns were "wrong".

The latest feedback we have received is great news.

The IRD will continue to put a hold on the proposed audit while their tax policy people prepare a discussion document, for interested parties, in the next few months.

A big step forward in the right direction!