At least 50,000 construction businesses have at least one outstanding return or some form of debt to IRD. Photo: NZME
Inland Revenue (IRD) says about 50,000 construction businesses are behind on their tax as it launches a campaign to get tradies back on track.
The department's developed an online toolkit, the Tax Toolbox, to help businesses get their tax affairs in order.
Spokesperson Richard Philp said the website encouraged tradies to watch pre-recorded seminars, book a business advisory visit with the department or to talk to a tax agent.
"Our data shows that under-declaring income, often via cash jobs, is prevalent in the construction sector," he said.
"Some people actively avoid their tax obligations, while others may be simply struggling to keep up with the day-to-day grind."
Philp said the department knew of at least 50,000 construction businesses with at least one outstanding return or some form of debt to IRD.
"The construction sector has the highest amount of tax debt and customers in liquidation," he said.
"It is also the most commonly reported industry through Inland Revenue's anonymous information channel, which shows the level of concern within the community."
He acknowledged the pressures the sector had been under over the past year even as the sector had continued to grow, fuelled by large infrastructure and 'shovel-ready' projects.
"We know businesses in the construction sector have struggled with increases in the cost and availability of materials, supply chain constraints and labour shortages over the last few years.
"They've also been dealing with the pressures of running their businesses through the pandemic and the aftermath of recent cyclones."
Philp hoped the website would help construction businesses understand their tax obligations.
