29th September 2025

To our valued clients,
Recent events have made it abundantly clear: Inland Revenue (IRD) is serious about tax compliance, and the consequences of ignoring your obligations are more severe than ever.

A Christchurch builder was recently sentenced to seven months of home detention and ordered to pay $20,000 in reparations after evading more than $260,000 in income tax over five years. He failed to file returns, falsified income, and even fled to Australia after being notified of an audit. Despite multiple attempts by IRD to contact him, he ignored all correspondence. Ultimately, IRD pursued legal action and held him accountable.

What This Means for You

This case is not an isolated incident. Inland Revenue has received a major funding boost in Budget 2025—an additional $35 million per year—to ramp up audits, debt collection, and enforcement. Their goal is clear: track down non-compliance and recover outstanding tax debt.

Here are some key facts:

• Audit activity has surged by over 50% in the past year.
• Prosecutions and liquidations have more than doubled.
• IRD is using advanced data analytics, including bank and payment provider data, to identify discrepancies.
• They are targeting sectors like property, construction, crypto trading, and trusts.

IRD Is Now Unforgiving
The tone has changed. IRD is no longer lenient or slow to act. If you have:

• Outstanding tax debt
• Unfiled returns
• Received audit or compliance notices

Do not ignore them. Burying your head in the sand will only make things worse.

Take Action Now
If you’ve been contacted by IRD or suspect you may have unresolved tax issues:

• Contact Inland Revenue immediately to discuss your situation.t
• Or reach out to us at Bentleys Chartered Accountants Limited. We can help you navigate the process, make voluntary disclosures, and negotiate repayment plans.

Early engagement can significantly reduce penalties and avoid prosecution.

Let’s work together to keep your tax affairs in order. If you’re unsure about your position or need support, we’re here to help.

Contact Bentleys Chartered Accountants Limited today.

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Stay in touch. Please do not hesitate to contact your client advisor.