A group representing kiwifruit contractors confirms that the Inland Revenue Department is investigating a number of contracting companies over tax payments.
Twenty companies are reported to be involved. They are based in the Bay of Plenty, Hawke's Bay and some in Marlborough.
The IRD says they owe tax.
The Kiwifruit Contractors Association says a minority of contractors are ripping off the system, making it hard for legitimate contractors to find enough workers.