“Just be honest mate and pay your tax,” say tradies

A survey of Auckland tradespeople shows an Inland Revenue campaign highlighting cash jobs has hit home, with four in five believing they’ll get caught if they cheat on their taxes.

The survey of nearly 420 tradies followed an advertising campaign in Auckland during April and May, with the message that tradespeople need to declare all their income, including cash, “or risk everything”.

Inland Revenue’s Group Manager Investigations and Advice, Patrick Goggin, said the survey results show that the message that doing under-the-table jobs is a tax crime is getting through.

“There was a high level of awareness of the campaign, with nearly two-thirds of tradies recalling it and more than half considering it was relevant to all tradespeople. That’s a great result for what was only a trial campaign,” Mr Goggin said.

The survey showed more tradies agreed that if they cheat on their tax, it is likely they’ll get caught, when compared to a similar survey in 2012, he said.

“This year half of tradies agreed with that statement, compared to just over a third back in 2012. That shows tradespeople do realise Inland Revenue will take action if it finds out they’re not declaring all their income.”

Mr Goggin said while the majority of tradespeople “do the right thing” by paying their taxes, there’s a minority who are cheating the system and ripping off taxpayers.

“Unfortunately our survey found that in the Auckland region, there’s anecdotal evidence that up to a quarter of building and construction involves under the table work. If that’s true, that’s a lot of tax not being paid and that would have funded vital services we all benefit from such as schools, hospitals and social services.

“I think what’s encouraging though is that tradies are talking about their tax obligations with their mates in the industry and with their customers. And most are saying it’s no longer okay to do work for cash and not declaring it.

“Some of the comments they told us were: ‘About time IRD cracked down on it’, and ‘Just be honest mate, and pay your tax’. And more than three-quarters of respondents disagreed with the statement ‘I don’t think of tax cheating as a real crime’.”

Mr Goggin said although Inland Revenue had identified the building and construction industry as being a high risk for tax evasion, all levels of tax evasion from any industry were treated very seriously.

Media contact:

Pete van Schaardenburg

04 890 1698, 021 348 696

peter.vanschaardenburg@ird.govt.nz

Auckland tradesman sentenced to 10 months home detention for tax evasion

A recidivist Auckland tax cheat has been sentenced to 10 months home detention and ordered to pay $92,400 reparation, following a second conviction for tax evasion offences.

Sonny Te Kanawa Walker, a 50-year-old carpet layer, was sentenced at Manukau District Court on a range of tax evasion offences, including not filing tax returns and not accounting for GST and income tax for six years.

Inland Revenue Group Manager, Investigations and Advice, Patrick Goggin said Walker’s offending was calculated, deliberate and inexcusable.

“Walker was clearly aware of his tax obligations and he wilfully chose to ignore them. He had already been convicted of these types of offences once before so there was no way he didn’t understand his responsibility to file returns and pay tax,” Mr Goggin said.

“By pocketing all of his income, he made a conscious decision he did not need to pay his fair share of tax while other honest New Zealand taxpayers did.”

Walker worked as a self-employed carpet layer since 2004, charging clients for his labour and GST. In 2009 he was prosecuted by Inland Revenue for similar tax evasion offences, yet continued to offend.

“This sort of behaviour completely undermines our tax system, which is based on voluntary compliance,” said Mr Goggin. “While the majority of taxpayers do the right thing, there is a few like Walker who think they can hang on the coattails of others and get away with not paying.

“That money Walker should have paid would have gone towards vital Government services that we all rely on, such as hospitals, schools and welfare.”

Mr Goggin said Inland Revenue was working hard to make sure tradespeople were aware of their tax obligations. A survey of tradies after a recent marketing campaign showed those who thought that cheating on their tax was a crime had increased by 40% since 2012. 

The amount of unpaid tax from the combined offending, including penalties and interest, is more than $440,000.

Media contact:

Michelle Smith

04 890 4630 029 890 1380

Michelle.Smith@ird.govt.nz