PHOTO: FILE
The Inland Revenue is issuing a final warning to individuals in the construction sector to settle their tax dues or face repercussions. With nearly $900 million owed by entities in the construction industry, constituting approximately one-sixth of the total outstanding tax debt, the urgency is paramount.
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IRD spokesperson Richard Philp highlighted their intention to target around 40,000 businesses in a dedicated campaign, focusing on those with unfiled returns and outstanding tax liabilities. Philp emphasized the principle of fairness, stating that operating insolvently creates an uneven playing field for compliant businesses.
For those who have evaded IRD’s attempts at communication and payment, direct engagement is imminent to assess their circumstances. Penalties for delinquent tax payments can escalate rapidly, starting at a 1 percent entry point and increasing by 4 percent over time.
Recent IRD surveys suggest increased acknowledgment of cash transactions, but the agency can leverage various sources like bank records to verify income. Despite this, some individuals still neglect to file tax returns despite evidence of transactions. IRD receives approximately 7,000 tips annually regarding cash jobs, with a significant portion relating to the construction sector.