5 Apr 2012

IRD benchmarks welcomed

6:48 pm on 5 April 2012

A tax expert says the release of performance indicators for 16 cash-heavy firms should be welcomed by companies in those sectors.

The benchmarks highlight what Inland Revenue expects firms with turnover of between $60,000 and $10 million should make in their various sectors.

The sectors include restaurants and cafes, bars and taverns, painters and decorators, and car rental firms.

PWC partner John Shewan says IRD is trying to identify tax dodgers, but companies can use the information to find out how they are performing against their peers, and tax agents can use it to help firms lift their performance.

Mr Shewan says it's not necessarily bad news for firms if they fall outside the benchmarks.

Inland Revenue is also targeting the hidden economy and aims to collect an extra $600 million over the next decade.