The next items under the microscope
As we know with every budget the government adds to the IRD reserves for monitoring tax compliance.
One of the initiatives IRD have is the Property Compliance Programme (PCP). This programme is an integral part of the Inland Revenues' compliance focus.
The purpose of the PCP is to investigate and assess the tax risk associated with property transactions. These include:
- off-the-plan sales
- historical GST refunds where no taxable activity has taken place
- land banking
- residential investment that crosses the line into property dealing
- incorrect application of the new zero-rating rules for property sales
- property speculation, particularly in geographical areas ripe for development.
If you are involved in any of the above, you may like to check with your tax advisor that your i's are dotted and t's are crossed. To avoid unnecessary surprises talk to your tax advisor today or contact us, we are more than happy to help.
Other Compliance focus areas include:
- Everyone files and pays on time
- Habitual non-compliance
- Aggressive tax planning
- Misuse of charities
- Property (refer above)
- High-wealth and high-income individuals
- Leasing arrangements
- Diversion of personal income
- Fraud and identity theft
- Under reporting and operating outside of the tax system
If any of the above could apply to you, talk to your tax advisor or give us a call on 03 578 3386 or send us an email at email@example.com, we are here to help.