It came to our attention recently that teams of IRD staff have arrived unannounced at the business premises of some mechanics and motor repairers in the Porirua/ Plimmerton region.
These teams are made up of members of the investigation team (who’s role includes identifying gaps in cash collection and reporting), and the community compliance team (who’s focus is more on assisting businesses with understanding their obligations).
This raises a couple of issues:
- Is this legitimate – are they allowed to do this?
- What are your rights, what can you do about it?
- What are their powers?
Yes, they can do this. They do have to carry ID and warrants. But if they arrive on your doorstep, other than ensuring they are wearing the appropriate ID, all you can do is co-operate, and call your accountant to ensure you understand what they are trying to achieve.
Having robust, transparent systems and good records will ensure they leave quickly.
The IRD have stated that they want to visit small businesses more. These teams will continue to “target” specific industries and identify areas that they think need addressing. They will collate their findings and issue a report. We will pass on any useful information we get from it.