New Zealand horticultural tax evasion investigations

New Zealand’s Inland Revenue Department (IRD) has issued alerts regarding widespread tax evasion and noncompliance within the horticultural sector. The agency identified various methods used to conceal GST, PAYE, and income tax, including cash payments to workers, complex contracting arrangements, and the use of false invoices.

Authorities have specifically highlighted risks within the kiwifruit industry, noting that some operators may have engaged in “double dipping” by claiming fraudulent deductions while failing to deduct taxes from actual wages. These practices have raised concerns regarding money laundering and worker exploitation. The IRD suspects it is missing tens of millions of dollars in the kiwifruit sector alone.

In the fiscal year ending June 30, 2026, the IRD opened over 100 investigations into horticultural businesses, uncovering millions of dollars in discrepancies. In response to these enforcement efforts, some industry players have implemented measures to restrict subcontracting to non-certified contractors, while industry groups have expressed support for proactive government action.