The Inland Revenue Department (IRD) is targeting insurance advisors who are reportedly not paying enough Goods and Service tax (GST).

According to the IRD there are currently some insurance agents paying too little GST. The problem arises in the instance of insurance agents earning more than $40,000 from the sale of health and disability and income protection insurance.

Currently, commission earned on life insurance is exempt from tax, other types of insurance are not. Seemingly guilty parties have pleaded ignorance to this fact as an excuse. This is yet to become a large problem, with only small numbers currently participating in such activity.

While the IRD has raised this issue with the Institute of Financial Advisors and the Professional Advisors’ Association already, it aims to quell the problem by creating an education package.