IRD Obtains Offshore Data
The IRD will soon have its hands on a fresh set of data concerning taxpayers who have actively sight to evade their taxes using companies registered offshore.
Over the weekend the Inland Revenue Department praised a decision made by the Australian Tax Office (ATO), the UK HM Revenue and Customs (HMRC), and the US Internal Revenue Service (IRS) to share leaked data regarding taxpayers using entities registered in tax havens in order to evade their tax obligations.
The group manager of compliance planning and development at the IRD Raju Budhia explained that the Department would soon begin working in close cooperation with the ATO in order to obtain information on any New Zealanders which have used offshore structures to evade their tax obligations in New Zealand.
The data jointly held by the ATO, IRS and HMRC contains over 400 Gb of files and information on taxpayers around the world who have used entities registered in tax havens as part of their corporate structures.
The IRD’s investigations into the information will not only revolve around the individuals who are actively using offshore structures to skip out on their taxes, but also on the providers and specialists who offer their services to help taxpayers to evade their obligations.
The IRD expects that the intitial investigations into the tax affairs of taxpayers mentioned in the dataset will begin within the next few months, and Raju Budhia issued a warning to taxpayers to come forward and disclose their evasion now “before we come knocking on your door.”
Photo by Paul Balchin