🚨Big Mistake 2: Being on Inland Revenue’s Most Wanted List – How to Stay Out Of Jail
If there’s one person you don’t want to be on the wrong side of – it’s the Tax Man! While our tax agency here in New Zealand may be much more helpful and a bit more lenient than those in other parts of the world (ATO in Australia and HMRC in the UK are ruthless), the IRD aren’t an organisation to take lightly.
And, while they may waive a fee or two for a genuine error, if you try to evade tax, they’ll come down on you with an iron fist.
🔍 Non-compliance in tax obligations
While it may be complicated, getting to grips with what you owe and when you owe it is incredibly important for any Kiwi property owner and investor.
📈Failure to meet your obligations can result in severe penalties, including interest charges and shortfall penalties that can amount to 100% of the tax owed.
Yes, 100%.
So a $20,000 bill can turn into $40,000, excluding the interest.
Don’t think you can beat the system; data analytics is sophisticated enough to flag discrepancies in tax records, making you stick out like a sore thumb. Do the right thing, or better yet, delegate it to someone who can do it for you.
Remember, your tax is essential for funding public services and infrastructure, such as healthcare, education, transportation, and social security.
Over the next few days, I will be talking about how to stay clear of the IRD spotlight.
💬 I want to hear from you: Have you ever faced challenges with property tax compliance? Share your story in the comments!
