Latest news with #TonyMorris
1News
19-06-2025
- Business
- 1News
Undeclared tax totalling $45m found in horticulture industry
Inland Revenue (IR) has found $45 million worth of undeclared taxes in the horticulture industry over the past 10 months. The tax department also said it had seen some "concerning" practices in the sector, including people being paid under the table. Inland Revenue spokesperson Tony Morris said paying tax for some in the sector had often become an afterthought with ongoing recovery from Cyclone Gabrielle, increasing compliance costs, and labour shortages. "Along with paying people under the table, IR is seeing cash sales not being reported correctly (including payments to contractors) and withholding tax not being deducted on schedular payments made, deducted at incorrect rates or not being reported to Inland Revenue." 'While many growers are doing things right, they typically hire labour through a contracting firm, which then frequently pays the labourers in cash. Some of these contracting firms then use convoluted business structures to try and hide those payments. ADVERTISEMENT "Not only does this mean they could avoid their tax, but it also means the labourers can get benefit payments they aren't entitled to or avoid their child support or student loan payments," Morris said. The morning's headlines in 90 seconds including what will happen to food after supermarket blaze, Trump's dithering over the Middle East, and winter car care tips. (Source: 1News) IR recently said it would be intensifying its tax compliance and collection efforts after a significant funding injection in the last two Budgets. The Government had allocated new additional permanent funding of $35 million a year for Inland Revenue and also continued funding of $26.5 million a year from Budget 2022 that was due to run out in June. A return of $4 for every dollar was expected for the first year with $8 for every dollar from the second year. Morris said IR was cracking down by requiring contracting firms to withhold tax from their labourers' payments and pay it directly to IR. "Where Inland Revenue identifies growers and other payers not correctly deducting or accounting for the tax, we are also following these up." Close to 100 audits of contracting firms were active at the moment, with prosecutions also underway. "With a high use of cash and migrant labour, the horticulture industry is also a sector open to abuse of workers," Morris said, adding that IR works with other government agencies to address those issues. 'Alongside Hort NZ and Zespri, we work hard to ensure growers and contracting firms are aware of what they need to do to get things right, and appreciate the efforts of the many who do get it right."
RNZ News
18-06-2025
- Business
- RNZ News
Inland Revenue finds $45 million of undeclared tax in horticulture industry from last 10 months
Inland Revenue was pursuing the contracting firms through audits and prosecutions with nearly 100 such audits active at the moment. Photo: Supplied Inland Revenue has found $45 million of undeclared tax in the horticulture industry in just the last 10 months. Spokesperson Tony Morris said they were seeing concerning practices in the sector, that included people being paid under the table. He said some in the sector were still recovering from Cyclone Gabrielle, and dealt with increasing compliance costs and labour shortages, so paying tax could become an afterthought. Morris said Inland Revenue was also seeing cash sales not being reported correctly and withholding tax not being deducted on payments made, deducted at incorrect rates or not being reported. Growers typically hire labour through contracting fims and Morris said it's these firms that try and hide payments. Photo: 123rf Inland Revenue was pursuing the contracting firms through audits and prosecutions with nearly 100 such audits active at the moment. "While many growers are doing things right, they typically hire labour through a contracting firm, which then frequently pays the labourers in cash. Some of these contracting firms then use convoluted business structures to try and hide those payments," Morris said. "Not only does this mean they could avoid their tax, but it also means the labourers can get benefit payments they aren't entitled to or avoid their child support or student loan payments. "Inland Revenue is cracking down on this by requiring many contracting firms to withhold tax from their labourers payments, and pay that directly to IR. Where Inland Revenue identifies growers and other payers not correctly deducting or accounting for the tax, we are also following these up." Morris also said due to the high use of cash and migrant labour in the horticulture industry, it was a sector open to the abuse of workers. He said Inland Revenue worked with other government agencies to address such issues. "Alongside Hort NZ and Zespri, we work hard to ensure growers and contracting firms are aware of what they need to do to get things right, and appreciate the efforts of the many who do get it right." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
17-06-2025
- Business
- Scoop
Horticulture Sector In The Spotlight
Inland Revenue (IR) says it is seeing a few concerning practices in the horticulture sector, including people being paid under the table. Most people do the right thing and pay the right amount of tax, however in the past 10 months IR has found $45m of undeclared tax in the horticulture industry. Tax an afterthought Inland Revenue spokesperson Tony Morris says with some in the sector still recovering from the devastation of Cyclone Gabrielle, and dealing with increasing compliance costs and labour shortages, paying tax has often become an afterthought. 'Along with paying people under the table, IR is seeing cash sales not being reported correctly (including payments to contractors) and withholding tax not being deducted on schedular payments made, deducted at incorrect rates or not being reported to Inland Revenue,' Tony Morris says. 'While many growers are doing things right, they typically hire labour through a contracting firm, which then frequently pays the labourers in cash. Some of these contracting firms then use convoluted business structures to try and hide those payments. 'Not only does this mean they could avoid their tax, but it also means the labourers can get benefit payments they aren't entitled to or avoid their child support or student loan payments. Audits and prosecutions 'Inland Revenue is cracking down on this by requiring many contracting firms to withhold tax from their labourers payments, and pay that directly to IR. Where Inland Revenue identifies growers and other payers not correctly deducting or accounting for the tax, we are also following these up. 'IR is also pursuing the contracting firms through audits and through prosecutions. There are nearly 100 such audits active at the moment. Joint efforts 'With a high use of cash and migrant labour, the horticulture industry is also a sector open to abuse of workers. IR works with other New Zealand Government agencies to address these issues. 'Alongside Hort NZ and Zespri, we work hard to ensure growers and contracting firms are aware of what they need to do to get things right, and appreciate the efforts of the many who do get it right,' Tony Morris says.
