Undeclared cash in the construction sector remains a high priority for the Inland Revenue (IR).
You’ll probably recall recent advertising that they have done, and you may have seen the advertising that they are running at the moment.
We’re just letting you know the IR are going to write to some construction clients again about it. They are reminding you of your obligation to declare all your income, including cash jobs – no matter how big or small – when you file your GST and/or income tax returns.
As atax agent, we have an important role to play in reminding our clients to get it right. Some of the ways we can help you are:
Checking your record keeping to ensure you're recording every job
When requesting financial records ask you directly if you have cash jobs to declare
Reminding you that the consequences of not declaring income can include tax penalties, criminal convictions or your ability to contract for work – which could have a considerable impact on your business and personal circumstances
Letting you know that IR is getting smarter at finding people who are not declaring all their income.
Tax agents like us have an important role to play in helping people meet their tax obligations - we are here to help get it right.