1 Oct 2016

More big businesses to be monitored by IRD

7:33 am on 1 October 2016

The Inland Revenue Department (IRD) is boosting its scrutiny of taxes paid by big business.

New Zealand money

IRD will now monitor the taxes of 900 big businesses. Photo: 123RF

Since 2012, 600 New Zealand and foreign-owned groups have been under the IRD magnifying glass.

But from next year that number will grow to 900, and include all foreign-owned multinationals with turnover more than $30 million.

IRD's International Revenue Strategy Manager John Nash said big business tax compliance these days was a lot more than just doing audits.

"Now these big companies and multinationals are intensely monitored on an almost real-time basis," he said.

"We've adopted a targeted compliance programme to help New Zealand's biggest corporate taxpayers get it right and to make sure they are paying what they should."

Mr Nash said the 50 largest corporate taxpayers received even closer attention and were account managed on a one-to-one basis.

"This approach has reduced somewhat, the need to undertake large audits for years after tax returns are filed, and we've created a no surprises environment when it comes to tax."

Mr Nash said all 900 companies would have to supply annual information on their group structure, financial statements and tax reconciliation's.

"This approach and success in the courts combating aggressive tax planning is leading to improved compliance and a reduced appetite for pushing boundaries among the corporate community," Mr Nash said.