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Speaker 1: Now the IID has uncovered more than one hundred and

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Speaker 1: fifty million dollars of undeclared tax tax should say, in

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Speaker 1: the property sector, developers and rental property owners haven't been

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Speaker 1: paying the correct GST income tax and brightline test taxes.

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Speaker 1: Tony Morris is an Inland Revenue senior manager and with

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Speaker 1: us now, Hey, Tony.

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Speaker 2: Hi, Heather, thanks for inviting me.

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Speaker 1: Yeah, thanks for talking to us. Is it accidental or deliberate?

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Speaker 2: It's a mixture of both actually, because there's a range

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Speaker 2: of things we do with property and we've been investing

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Speaker 2: in our sort of compliance activity over the last couple

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Speaker 2: of years and not last year with extra money from

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Speaker 2: the government. It's a range of mistakes that we try

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Speaker 2: to help people with an educate and then there is

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Speaker 2: some stuff that's deliberate.

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Speaker 1: Oh what proportioned Erican is deliberate?

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Speaker 2: Had to say an actual proportion, because you could talk

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Speaker 2: about either money or the number of different tax payers

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Speaker 2: who do that. But probably what we see sometimes, especially

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Speaker 2: in the GST area and the property developers, as with

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Speaker 2: the GST, people can quite often get refunds up front

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Speaker 2: for the expenses they pay on developing or on on

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Speaker 2: buying a property and then selling it. So sometimes people

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Speaker 2: claim the refund and when they go to sell it

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Speaker 2: not always return that amount that they that they should

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Speaker 2: do when they sell. And some people actually tend to

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Speaker 2: use IR as a bit of a finance opportunity to

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Speaker 2: get to get the refund and then a lot to

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Speaker 2: use that to buy the next section rather than patch

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Speaker 2: pay the tax. And one thing with GST we should

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Speaker 2: remember is that's actually sort of the people that bought

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Speaker 2: the properly originally giving the GST to the property developer

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Speaker 2: or such like, in they're then meant to pass it

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Speaker 2: onto ID because it was never their money. So we see,

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Speaker 2: we see a little bit of that. But we've got

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Speaker 2: so much better data and intelligence tools now we've been

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Speaker 2: really investing in that, so we we do know now

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Speaker 2: every time someone sells property in New Zealand, and our

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Speaker 2: system can match quite quickly to see whether we think

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Speaker 2: that's when a property is sold that they should pretend

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Speaker 2: some text on that and the next return. So we

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Speaker 2: actually advise them as soon as we know that that hey,

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Speaker 2: we see you sold a property, well done, but emeric

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Speaker 2: looking forward to seeing that in the next return or

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Speaker 2: payment and I love.

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Speaker 1: That well we're going to pay up.

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Speaker 2: Okay, So we try to start with a nice message.

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Speaker 1: Yeah, fair enough, I love it. Okay, So are you

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Speaker 1: telling me now? Like back in the old days you

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Speaker 1: could pretend you could probably be like, oh nah, I'm

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Speaker 1: just not going to declare it like it was like

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Speaker 1: an honesty box system with the bright line test. That's

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Speaker 1: no longer the case. You're going to. It's going to

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Speaker 1: pring with you, it's going to flag with you, and

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Speaker 1: you're going to know when people need to be paying

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Speaker 1: you up automatically.

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Speaker 2: Yeah, well we're going to We're going to know that

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Speaker 2: you sold a property, and our system will tell us

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Speaker 2: whether there's a good chance that you might have to

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Speaker 2: pay text on it, which does won't get it one

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Speaker 2: hundred percent right, but we will notify you, know, to

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Speaker 2: see that you may be liable and let us know

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Speaker 2: if you're not work with us if you want to,

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Speaker 2: or we expect to see them the next return. And

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Speaker 2: if people don't follow it and we think they should

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Speaker 2: have paid or that, then we can get onto them

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Speaker 2: straight away and even raise an assessment against them. So

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Speaker 2: we can start sort of collecting the text as well,

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Speaker 2: really early, rather than wait quite a few months and

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Speaker 2: what we find is when we are contacting people who

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Speaker 2: do need to pass the text, they caught us and

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Speaker 2: do what we call a voluntary disclosure and sort of disclosure.

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Speaker 2: I should return it and then we work with them

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Speaker 2: to settle everything up. Then.

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Speaker 1: Yeah, brilliant stuff. Hey listen, Thanks very much, Tony, I

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Speaker 1: appreciate it and well done, as you say, good message

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Speaker 1: up front, Well done on getting all the money in.

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Speaker 1: Tony Morris, Inland Revenue senior Manager. For more from Hither

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Speaker 1: Duplessy Allen Drive, listen live to news talks. It'd be

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Speaker 1: from four pm weekdays, or follow the podcast on iHeartRadio