New Zealand Inland Revenue targets kiwifruit sector tax noncompliance

The New Zealand Inland Revenue Department (IRD) has issued an alert regarding widespread tax noncompliance within the horticultural sector, specifically targeting the kiwifruit industry. The IRD is investigating practices involving subcontractors, the use of false invoices to obscure transactions, and the under-reporting of GST and PAYE.

Authorities have identified significant concerns regarding cash payments to orchard workers, which increase the risks of money laundering and worker exploitation. Some operators have allegedly engaged in “double dipping” by claiming tax and GST deductions based on fraudulent invoices while failing to deduct taxes from actual wages. The IRD suspects it is missing out on tens of millions of dollars in the kiwifruit sector alone.

In the year ending June 30, 2026, the IRD opened more than 100 investigations into horticultural businesses, involving approximately US$4.2 million in discrepancies. NZ Kiwifruit Growers Incorporated has expressed support for these enforcement efforts, noting that while most growers comply with obligations, proactive government action is necessary. Some industry players, such as Seeka, have implemented measures to restrict subcontracting to non-certified contractors to mitigate these risks.