The Inland Revenue (IRD) is the New Zealand Government’s department responsible for improving the social being and economic status of the country. They collect four-fifths of the revenue of the various Crown entities, including those under the Statutory, Crown Entity Companies, Crown Entity Subsidiaries, School Boards of Trustees, and Tertiary Education Institutes.
They also make certain that all businesses pay their taxes on time and in full. The power bestowed upon them by the government allows them to penalise organisations that do not comply. So as a business owner, you want to make sure you abide by their laws, or you will find yourself facing unnecessary repercussions.
The world of taxes and its complexity
Just like in any other part of the world, people who work or have their own businesses need to pay tax. The money that you allot for this aspect of your business benefits everyone in the community, or the entire nation for that matter, because for the most part, the government uses it for projects that improve the well-being of all the nation’s residents.
One thing to keep in mind, though, is that the world of tax is something better left in the hands of professionals. Accountants in North Shore that specialise in taxation, such as Accounting North Ltd, will help you prevent issues with the IDR, something you totally do not want to happen when it comes to your business.
The repercussions of failure to pay your taxes
Whether intentional or accidental, not paying taxes will lead to serious consequences that will not only result in dreaded visits and audits from the IRD but also affect the professionalism and credibility of your business.
For instance, when you fail to report income, this will already lead to the IRD having their eyebrows raised. This may then lead to emails and reports about your organisation that you rather not deal with, especially since you want to retain the best possible consumer perception.