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The cold hard facts about Cash Handling in your Business

Posted by Bizink on May 12, 2014 8:10:02 AM

The current perception is that there are many businesses that deal in cash – particularly the service industry and many of us are aware of the scenario of a business offering a discount for cash transactions.  This is what is known as the ‘hidden economy” – it benefits neither the provider nor the receiver to be involved in these transactions which amount to a fraudulent activity and the Inland Revenue has targeted this ‘hidden economy’ with heavy penalties.  In fact a month ago, the Revenue Minister announced that ‘compliance activity for ‘hidden economy’ tax evasion gave a return of $45million, $5.60 for every dollar spent” – that was in 2013.  This means that ensuring compliance is really worthwhile for the IR and they will continue to invest in this area.

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Topics: benefits of Xero, business, Firm News, accounting, Blog, Inland Revenue, TAX, cash flow

Penalties for false income reporting – case

Posted by Bizink on Sep 12, 2011 5:47:47 AM

Former restaurant owner gets home detention for false income reporting

A former Wellington restaurant owner has been sentenced to five months home detention and 200 hours of community work for filing false Income Tax and GST returns and evading tax.

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Topics: false returns, Firm News, accounting, Blog, Inland Revenue, penalties, tax, tax evasion

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