Undeclared cash remains a high priority for the IRD. In particular, the construction industry is prevalent for this type of behaviour. You might’ve seen advertising they’ve done on the streets and in the media
Accepting cash for the payment of services is perfectly fine as long as you declare it in your annual income tax return. Make sure you:
- Keep a record of the amounts of cash you receive, no matter how big or small
- If you are registered for GST, make sure you charge GST and file the amounts in your GST return. If you are not registered for GST, keep in mind that must register when your turnover exceeds $60,000
- Declare all your income when you file your tax return.
Putting your tax returns right
If you’ve left some income off your tax returns its best to let us know now, rather hoping Inland Revenue don’t find out by some other way. Making a voluntary disclosure is the best way to correct your tax affairs because shortfall penalties can be reduced up to 100%.
Deciding not to tell Inland Revenue may lead to shortfall penalties being charged up to 150% and court prosecution.
It’s important that you tell us about all your income each year regardless of how small the amount is. If you need help correcting your tax returns, please contact us as soon as possible.