- Summary of technical decision on suppressed cash sales, GST, and evasion shortfall penalties
- Decision date: 22 November 2023, Issue date: 12 April 2024
- Document is a summary and not official advice or guidance
- Taxpayer involved in fraudulent activity through suppressing cash sales
- Taxpayer under-reported GST and income tax
- Taxpayer ceased taxable activity, another company took over
- Evasion shortfall penalties of 150% applied, reduced for previous behavior by 50%
- Dispute over reassessments and default assessment referred to Tax Counsel Office
- Main issues in dispute: under-reporting cash sales, offsetting costs, GST reassessment, liability for shortfall penalty
- Preliminary issues raised by Taxpayer regarding Commissioner’s authority to issue assessments
Source: taxtechnical.ird.govt.nz
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
