The IRD is calling on tax evaders to come clean regarding their tax structures in exchange for some lenience on their tax reassessment.
In a press release issued on March 6th the Inland Revenue Department has reminded taxpayers “…who may have reduced their income tax obligations through an income diversion arrangement have until the end of this month to take advantage of Inland Revenue’s concession to make a voluntary disclosure.”
Under the terms of the current disclosure program, any taxpayers coming forward to willingly disclose information about their income diversion structure will only be required to reassess their incomes for two years during which they used such a structure.
Any taxpayers who choose not to take advantage of the disclosure program and come forward with information about their income diversion structure may be required to reassess four years of income instead of two.
The program is aimed primarily at taxpayers who reduced their tax liabilities using a “Penny and Hooper” style income diversion structure.
As at the end of February this year, the IRD has been contacted by 271 taxpayers to make a disclosure since the initial Penny and Cooper ruling in 2011.
Photo by DES Daughter