New Zealand Inland Revenue issues alert on horticultural tax evasion

Inland Revenue, New Zealand’s tax authority, has issued a Revenue Alert warning that tax‑dodging practices are widespread in the horticultural sector. The department identified cash payments to workers, complex contracting arrangements and false invoices that can conceal GST, PAYE and income‑tax under‑reporting. It is also targeting non‑compliance with schedular payment rules, misuse of exemption certificates and tailored tax rates.

The agency will tighten scrutiny of new GST registration applications from growers, contractors and subcontractors, declining those that do not demonstrate a genuine taxable activity. It will amend assessments, pursue outstanding debt and may prosecute offenders. Evidence of tax offences may be shared with police and the Labour Inspectorate/Ministry of Business, Innovation and Employment (MBIE). In the year to 30 June 2026, Inland Revenue opened about 130 investigations into horticulture businesses, uncovering roughly NZ$7.2 million in discrepancies, with 45 cases still open and three individuals sentenced to home detention for tax evasion.