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Topic # 42361 2-Oct-2009 19:11
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If someone from overseas comes here and gets a self employed job, and does it for a number of months, then leave country before paying any tax on that job, what powers do IRD, immigration etc have to do about it?

How does one report this in while it is in progress (before they have a chance to leave the country laughing about all the tax they dodged)?

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  Reply # 260676 2-Oct-2009 19:48
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http://en.wikipedia.org/wiki/Tax_avoidance_and_tax_evasion

Definitely report it man, also advise them that if they want to travel to various otehr countries with nearly the same tax evasion laws: Australia, UK etc they will have trouble entering

Immigration would probably stop them at the border :) seeing that they do it for things such as dodging a warrant for arrest, unpaid fines.....It depends if you like the person or not.

MIght be a good time to message IRD
http://www.ird.govt.nz/online-services/keyword/advice-assistance/online-general-enquiry-form.html
You can even do it anonymously(well apart from your IP address tracked)




I have moved across the ditch.  Now residing in Melbourne as a VOIP/Video Technical Trainer/Engineer. 



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  Reply # 260748 3-Oct-2009 09:19
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Thanks for your reply. I read the first part of the Wiki link, and I think thats going to make what I'm trying to do fit into the too hard basket, as they are from the USA.

I have a part time job, as a "self employed" contractor which I'd estimate there would be around 500 people nationally. This job is not taxed at the source, and there seems to be NO way of getting caught if one chooses not to pay tax, unless someone reports you. Thus nobody pays tax (except me because I'm not a bad boy).

I only work a small number of hours and I owe IRD $975 in tax for last year and thats after a lot of expenses have been written off. Nobody else of ~15 locally pays their tax, so its probably the same story nationally. So IRD is missing out on tax in the millions. They all think its so funny that they don't pay tax, its pretty sickening. I'd like to do something about it, trouble is if I report my area, the finger pointing will instantly go to me as I'm the only one moral enough to pay the tax. So it would need to be done nationally, but would IRD investigate such a huge number of people over such a small sum of several millions (per year) of unpaid taxes, expescially when not given a list of names?

I see the investigation itself as a very easy task, all they need to do is somehow demand the list from the one company hirer of all the contractors, look through the records to see if they each filed an IR3, and if not hammer them. To be honest they ought to be charging some sort of withholding tax, that would solve everything.

 
 
 
 


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  Reply # 260753 3-Oct-2009 09:58
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The same goes for self employed people all over the place. Cash jobs, non declared income.

There is a way to get caught, if the company that is paying you gets audited they will have claimed your payment as a legitimate business expense but a crosscheck will show that none of the contractors (excluding yourself) have declared the income. Will it happen? Probably not.

P.S. This is tax evasion, not avoidance. I would let your colleagues know that you are prepared to tip off the IRD, or just do it. So what if the finger is pointed at you? Maybe they will read this thread and that will be enough to give them a scare. Maybe some of the others do actually pay tax, but they are just talking it up around the office?

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  Reply # 260830 3-Oct-2009 16:10
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This is why taxing personal income is fail and taxing consumption is much easier.

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  Reply # 260853 3-Oct-2009 18:23
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Depending on what job it is the employer may be required to deduct the tax from the payments (Withholding payments - now called Schedular payments) The list is on ird.govt.nz or in Schedule 4 Income Tax Act 2007. If the job isn't listed in that list then it is up to the individual to pay their own tax via an IR3. If you reported it to the IRD I wouldn't be suprised if they were pretty interested if there is indeed millions involved becuase their audit dept is being a lot tougher than usual at the moment.

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  Reply # 260854 3-Oct-2009 18:28
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Also not filing a tax return when required to is a criminal offence.

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  Reply # 261113 5-Oct-2009 12:04
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You could always mention that you were audited !! Explain that being an NZ'ler as opposed to a temporary worker made you an easy target of the IRD. IRD also tend to batch target individuals in various industry groups. Self-employed computer types were targeted a couple of years ago. Mobile mechanics another year, Avon re-sellers etc. ...




My thoughts are no longer my own and is probably representative of our media-controlled government

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  Reply # 261186 5-Oct-2009 13:40
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Ragnor: This is why taxing personal income is fail and taxing consumption is much easier.


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