PHOTO: IRD and New Zealand currency composite image. Source: 1 NEWS
Inland Revenue (IRD) says its turning its hidden economy focus investigation on to the real estate sector.
The tax department says the investigation will include “both the under reporting of income and the overstating of expenses”.
Inland Revenue spokesperson Richard Owen outlined why the focus is shifting to the sector.
“Real estate is one area that is booming during Covid-19 and our analysis of the sector suggests real estate salespeople/agents commonly claim high level of expenses relative to their income.
“Inland Revenue believes the issue is widespread and we must act. People are claiming private expenditure but not keeping logbooks or other business records to support the claim.
“If we are concerned that someone has overclaimed expenses, they will receive a letter from us requesting they prove the expenses claimed. Things like bank statements, invoices, a logbook and any other information to confirm the expense is deductible.”
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